Romain De Oliveira’s Post

Merci: Mercy a la France — Véritable direction économique — Talking & Walking the Talk, Eh?⚠️⛔️💰🛞 🇫🇷🙏⚠️ NYTimes: What Is a ‘Decent Wage’? France’s Michelin Raises a Debate. The French tire maker vowed to ensure that none of its workers would struggle to make ends meet. The New York Times - Liz Alderman, who writes about economic & inequality trends in Europe, reported from Paris. When the French tire maker Michelin closed its factories during the coronavirus pandemic, Florent Menegaux, the company’s chief executive, took stock of the closures’ impact on employees worldwide. Thousands of workers in Asia, Europe and the United States at the lower end of the company’s pay scales could barely get by, an independent review showed. Michelin vowed to do better. Last week, the 134-year-old company, which has 132,000 workers at 131 factories in 26 countries, announced that it would guarantee all of its employees a “decent wage” wherever they were in the world, part of a broader social plan intended to ensure that none of its workers would have to struggle to make ends meet. “If workers are just in survival mode, it’s a big problem,” Mr. Menegaux said in an interview. “When the wealth distribution in a company is too unequal, that’s a problem, too.” The announcement quickly ignited a debate in France over what exactly constitutes a decent wage and whether more French corporations should follow suit. Unions warned that the Michelin pledge would still leave some workers struggling and that it did not come with a guarantee against future layoffs or site closures. Corporations worldwide are looking to meet environmental, social and governance targets. A lot of investors are backing away from E.S.G. criteria, but some companies are signing up to become living-wage employers, which commits them to pay salaries that correspond to the costs of rent, food, transportation and child care in the regions where their workers live. In France, the cosmetics giant L’Oreal committed to a living wage and extended the pledge to its suppliers. Unilever is taking the same steps. Only 4 percent of the world’s most influential companies have made similar commitments, according to the World Economic Forum.

The right to a ‘decent’ wage should not be controversial. Employees are strategic stakeholders in companies, often called the ‘greatest assets’ of companies. Isn’t paying your greatest assets a living wage simply common sense, helping to attract top talent and employee loyalty as a culture of shared value supports long-term cross-stakeholder value optimization? Shareholders and broader stakeholders win when collaboration enables productivity. Good on Michelin for recognizing this fact. Companies that don’t recognize this fact are so short-term focused that they don’t pay proper attention to the fact that long-term value depends on people. Quoting Michelin’s CEO in the article - “If workers are just in survival mode, it’s a big problem,” Mr. Menegaux said in an interview. “When the wealth distribution in a company is too unequal, that’s a problem, too.” #responsiblebusiness #sustainablebusiness #esg #sustainability https://lnkd.in/g669gQwy

Research shows several things. First, we know that income predicts health and well-being (see, for instance, https://lnkd.in/g-EzT7U6 or https://lnkd.in/g9fCWaeJ). Second, we know that higher wages do NOT necessarily cause companies to incur higher costs. Why? Because higher wages tend to reduce turnover, which is costly. And higher wages help attract higher quality/more productive employees. Wage rates do NOT equal labor costs, because if people are more productive, labor costs are lower even though their rate of pay may be higher. Third, we know that average income levels help communities afford better infrastructure and services, including schools. More companies should follow Michelin's lead and consider employee wages as a focus of efforts to be more socially responsible. #wages #health #wellbeing #Michelin #France #productivity #turnover

According to Florent Menegaux, CEO of the leading tyre manufacturer Michelin, "When you're in survival mode, you don't care about other people or environmental issues, you're just reduced to animal instinct". In fact, by seeking to maximize value-creation for one category of stakeholders – shareholders – neoliberalism ends up disservicing all the others by remunerating them at a much lower relative value and does not allow Corporate Social Responsibility (#CSR) to play its original role as a social and environmental stabilizer. So, when a company like Michelin decides to introduce its own global living wage in accordance with the principles of United Nations's Global Compact after realising that national minimum wages were putting its staff into "survival mode", we must applaud this unprecedented ethical decision, which goes against the neoliberal mantra! On average, the living wage will represent between 1.5x and 3x the minimum wage, depending on the country. For example, in Paris, the minimum wage workers will take home has been set at €39,638 per year, while it is €25,356 in the more affordable region of Clermont-Ferrand. Both eclipse the national minimum wage of around €21,200. The proportion of employees on the minimum wage in #France has risen from 12% in 2021 to 17% in 2023 and at the same time, profits of major companies have soared... In the #US, workers will receive a minimum salary of $42,235, while in #Beijing they will make at least 69,312 yuan ($9,600) per year. Congratulations to Michelin ! Let's hope that you will inspire many other major companies to achieve a #justtransition. BusinessEurope European Parliament European Commission European Union #esg #brazil #china #sustainability #ethics #economy #economics EFAMA Eurosif - The European Sustainable Investment Forum

The headline goes, "'What Is a ‘Decent Wage'? France’s Michelin Raises a Debate." Michelin, the renowned French tire manufacturer, announced that it would guarantee all of its employees a “decent wage” wherever they were in the world. This is part of its broader social plan intended to ensure that none of its workers would have to struggle to make ends meet. As a result of its guarantee, Michelin has duly raised the salaries of around 5% of its workforce, benefiting those across China, France, and the US, among others, in some cases raising them above the local minimum wage. I would have thought that this move is long overdue and should be cheered. The only debate should be whether more can be done and whether other corporations should follow suit. Capitalism is all well and good. It is especially capable at efficiency, including the allocation of resources and the maximization of profits. But, to be sustainable and socially acceptable, fairness has to be baked into its design. Paying workers a decent wage has to be part of the equation. A decent or living wage, according to the standards set by the United Nations Global Compact, is one that enables a family of four to live “decently” in the city where they work. That means not running out of money before the end of the month after paying basic expenses and being able to save and spend modestly on goods or leisure activities. And paying a decent wage has benefits for the corporation itself, including attracting and retaining talents, higher productivity of workers, and encouraging more innovation and better quality output. At the macro level, in an era of widening wealth and income disparities, paying workers a decent wage is also good for the social compact, and allows corporations to continue to enjoy the social licence to operate. The Michelin Guide is well known for providing a directory of gastronomical delights in the world's best restaurants. With its guarantee to pay its workers a decent wage, perhaps Michelin has produced another guide worth following the world over. #michelin #decentwage #livingwage #capitalism #socialcompact #publicpolicy

What Is a ‘Decent Wage’? France’s Michelin Raises a Debate. (Extract of article from NY Times) "The tire maker vowed to ensure that none of its workers would struggle to make ends meet. When the French tire maker Michelin closed its factories during the coronavirus pandemic, Florent Menegaux, the company’s chief executive, took stock of the closures’ impact on employees worldwide. Thousands of workers in Asia, Europe and the United States at the lower end of the company’s pay scales could barely get by, an independent review showed. Michelin vowed to do better. Last week, the 134-year-old company, which has 132,000 workers at 131 factories in 26 countries, announced that it would guarantee all of its employees a “decent wage” wherever they were in the world, part of a broader social plan intended to ensure that none of its workers would have to struggle to make ends meet. “If workers are just in survival mode, it’s a big problem,” Mr. Menegaux said in an interview. “When the wealth distribution in a company is too unequal, that’s a problem, too.” The announcement quickly ignited a debate in France over what exactly constitutes a decent wage and whether more French corporations should follow suit. Unions warned that the Michelin pledge would still leave some workers struggling and that it did not come with a guarantee against future layoffs or site closures. Corporations worldwide are looking to meet environmental, social and governance targets. A lot of investors are backing away from E.S.G. criteria, but some companies are signing up to become living-wage employers, which commits them to pay salaries that correspond to the costs of rent, food, transportation and child care in the regions where their workers live. In creating its “decent wage,” the company, known for its rubbery Michelin Man mascot, referred to standards set by the United Nations Global Compact: a salary enabling a family of four to live “decently” in the city where they work. That means not running out of money before the end of the month after paying basic expenses and being able to save and spend modestly on goods or leisure activities, Mr. Menegaux said. Michelin turned to the Fair Wage Network, a nongovernmental organization based in Switzerland, to assess its salary structure. The resulting study found that 5 percent, or around 7,000, of Michelin’s employees worldwide were not earning enough. In response, Michelin adapted its salary scales to the cost of living in cities where its factories operated. In Beijing, the group increased the lowest pay level to 69,312 yuan per year, or a little less than €9,000. In Greenville, S.C., workers’ base pay rose to the equivalent of €40,000 per year." #ESG #CorporateSocialResponsibility #LivingWageEmployers

My next set of tires will definitely be Michelin. As a consumer the best thing I can do is to support companies that have these sorts of inniatives. I don’t believe in growing huge amounts of wealth to a few that are then distributed through philanthropy. The part of the article that is the most hopeful to me, is the idea that paying people a living wage is good business. As a BCorp this is a cornerstone of using business as a force for good.

🌍 What if a good start toward sustainability is to rethink the concept of minimum wage? Recently, Michelin announced a significant shift in their compensation strategy. Moving away from minimum wage standards, they have committed to paying all their employees a livable wage. This is not just a step forward for the company, but a bold move that challenges us to reconsider wage structures at the societal level. Paying a livable wage ensures that employees can meet their basic needs without financial strain, which is fundamental for social sustainability. This approach by Michelin could inspire other companies to follow suit, potentially leading to widespread changes in how wages are structured globally. 👏 Kudos to Michelin for setting a precedent. Let's discuss: could this be the catalyst we need for broader societal changes in wage policies? #Sustainability #LivingWage #CorporateResponsibility #SocialImpact Stephan M. Liozu, Ph.D. PricingForThePlanet Arnaud POTIRON Nicolas Le Breton Pierre Toulemonde Marie Enouz Alex Lheritier

Low salaries for employees may seem like a cost cutting measure, but it's actually a terrible idea. Especially, when your employees can see themselves they are being underpaid. In fact, higher wages tend to reduce turnover and attract higher quality, more productive employees. This means that wage rates do not equal labor costs, because if people are more productive, labor costs are lower even though their rate of pay may be higher. Michelin is setting an example for other companies by considering employee wages as a focus of efforts to be more socially responsible. #Wages #Health #Wellbeing #Productivity #Turnover

A salary is intended to help people to live decently.   That's why Michelin has deployed a ‘living wage’ program worldwide, a concept defined by the United Nations Global Compact and that Michelin has been a signatory of since 2010.   Early 2024, Michelin was recognized ‘Global Living Wage Employer’ from the Fair Wage Network, a world-renowned NGO. This certification attests that the Group employees worldwide receive remuneration at least equivalent to the living wage.   The living wages are based on employees’ location to correlate with living costs. In most cases, the references provided by Fair Wage Network are above the legal minimum wage.   Find out more about the living wage program through testimonies. B4IG - Business for Inclusive Growth