HomeEconomyUNDERSTAND EVERYTHING - Rules, Processes, Issues: How Mandatory Negotiations Work in Business

UNDERSTAND EVERYTHING – Rules, Processes, Issues: How Mandatory Negotiations Work in Business

In a context of social tensions and inflation, mandatory negotiations will be the subject of special scrutiny this year, within companies and groups. Explanations.

Faced with accelerating inflation – up to 6.2% annually in October according to INSEE – many unions are demanding a salary increase from their management. Proof of this is the series of strikes that have been followed this fall in various sectors of the economy. A drop in purchasing power that adds to the unfavorable context inherited from the health crisis.

Therefore, the question of value distribution arises more than ever. And beyond the measures that the Government devises to improve it, such as the dividend to employees or the shared value bonus, it is also through social dialogue, within the companies, where answers will have to be given. To do this, negotiations are organized between staff representatives and company management on remuneration, working time and value-added sharing – formerly called annual mandatory negotiations (NAOs). What does it consist on?

• In which companies are these negotiations carried out?

According to article L.2242-1 of the Labor Code, these negotiations must be held in companies where one or more trade union sections of representative organizations are constituted. Therefore, it is the elected officials who take part in the negotiations.

In this case, we are talking about derogatory negotiation.

It should be noted that these negotiations can be organized at the company or group level. In the latter case, the agreements that may be reached apply to this same extended scope.

• What topics are covered?

The first issue addressed during these negotiations is the remuneration of employees. It includes strict salaries but also conventional remunerations such as the bonuses provided for by the collective agreement. “The remuneration resulting from an agreement such as the performance bonus and peripheral remuneration such as restaurant vouchers and mobility bonuses are also the subject of debate,” explains Léna Quer-Riclet.

These negotiations are also an opportunity to address the pay gap between men and women. “In the absence of a professional equality pact in the company, it is in this negotiation where the measures to reduce the labor gap between both sexes are decided,” specifies the specialist.

The work schedule and the organization of working time are also discussed during these meetings.

• When do they take place?

There is no particular period for the organization of negotiations on remuneration, working time and distribution of added value. They can be carried out at any time of the year, depending on the habits of the company.

In addition, since the entry into force of the law on social dialogue and employment, known as the “Rebsamen law”, negotiations are no longer systematically annual. Some company agreements provide for their organization every four years. However, in the absence of an agreement and in most cases, they are held every year.

• How are you doing?

These negotiations are mandatory, that is, the company is obliged to open a space and time for discussion to organize them. “On the other hand, it is not mandatory to reach an agreement,” says Léna Quer-Riclet.

It is the employer who is responsible for initiating negotiations. If he does not do so, a trade union organization can request its opening.

Therefore, the reports or recordings must prove the content of the discussions. The company is also obliged to provide the unions with the means to obtain information for this cycle of social dialogue, by sending the data it has.

There is no mandatory minimum number of meetings. On the other hand, at least one meeting should be organized to set the schedule for future meetings. “We consider that it is necessary to organize at least three meetings to start a satisfactory job”, he estimates.

• How are the agreements signed?

At the end of these discussions, a company or group agreement can be voted on. It is qualified as a majority when it is signed by one or more trade union organizations that have gathered 50% of the votes cast in the last professional elections.

Author: Nina LeClerre
Source: BFM TV

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