Wage hikes test French government at social conference

French Prime Minister Sébastien Lecornu hosts a social conference Monday with unions and employers to address wage increases, following protests that drew up to 1.6 million people on November 5. The government faces pressure to ease social tensions while lacking tools for deep reform. Official figures show real private-sector base salaries fell 1.1% year-on-year, or about 3.3% since 2021, after inflation. The state can only act on the minimum wage (Smic), currently 1,477 euros net monthly, with unions demanding increases up to 10% while the labor minister warns excessive hikes could hurt employment. Employers say they cannot absorb wage rises alongside planned cuts to payroll tax relief in the 2027 budget. Economist Eric Heyer advocates broader reform, arguing the state currently subsidizes private wages through various exemptions and should redefine employer contributions instead.