French pay rises outstrip inflation

Pay in France is again rising more rapidly than prices after a period when monthly incomes fell in real terms.

The figures from the French ministry of labour's statistical unit DARES, published last month, show that monthly pay in the second three months of 2002 rose on average by 2.6% while consumer prices overall were rising by 1.8% (June 2002). In the second half of 2000 real monthly pay fell as a result of pay freezes and pay moderation linked to the introduction of the 35-hour week.

The legislation establishing the 35-hour week has, however, had an impact on working time. The average full-time working week in workplaces employing 10 or more workers is now 35.7 hours compared with 36.2 hours a year earlier. More than three-quarters (78%) of full-time employees in these workplaces now work less than 36 hours a week.

However, future progress in cutting hours is likely to be slow. New legislation introduced by the centre-right government removes most of the pressure on small employers to move to a 35-hour week. Under the new rules they can continue with the previous 39-hour week provided they pay workers a 10% premium for the four hours of overtime - equivalent to an extra 1.03% on pay.