After the first attempt failed last spring, the 3 union confederations and employers (confederation of industry, State and towns) finally signed, on August 30, a general pay deal called “Agreement on employment and growth.” The social partners failed to sign a global agreement when they negotiated last spring. With the fall getting closer, when several collective agreements should be renewed, concern about the increase in social conflicts in the absence of a framework agreement was growing. (Ref. 130525)
Employer change. Last spring, the negotiations failed (see article No. 130213) because employers had adopted a tough line (zero wage increase) and wanted sectoral agreements. Yet, the government had made a big effort and decided to cut corporate tax from 24.5 down to 20 percent. Of course, the shadow administration had then accused the government of making expensive compromises for employers and offering nothing in return. The economic situation had gotten worse than expected over the past few months and employers moderated their stance even if, when summer began, they still announced that they would rather sign sectoral agreements.
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