French government decides on lowest increase for minimum wage

The new centre-right French government of Jean-Pierre Raffarin has decided to increase the French national minimum wage, the SMIC, by 2.4%, the minimum possible.

Under French law the SMIC must go up by inflation plus half the real increase in pay of the average manual worker. Inflation is at 1.5% and the real increase in pay is 1.8%, making 2.4% the minimum increase (1.5% plus 0.9%).

Governments have often increased the SMIC by more than the minimum, particular after elections. Unions have reacted angrily to Raffarin's decision not to follow this example. Maryse Dumas of one of the two largest trade union confederations, the CGT, described the decision as "absolutely unjust and sickening", while Michel Jalmain of the other, the CFDT, complained that the unions "have not been heard".

The new hourly minimum rate from 1 July is €6.83 (previously €6.67). The monthly rate for full-time workers, however, varies between €1,154.27 and €1,035.90 because of the introduction of the 35-hour week for many employees. The government has promised to review how the monthly rates can be harmonised in the autumn.