![[France] Michelin sets global living wage after minimum wage left staff in ‘survival mode’](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Clermont-France--June-----459371769_1200x.jpg?v=1713484040)
French company Michelin has given its employees a significant pay rise following the discovery that the minimum wage in its home country had left some workers at breaking point, Fortune reports.
In a press release shared with Fortune and first reported by French publication Le Figaro, Michelin announced that it is rolling out its own living wage to 132,000 employees.
The wage hike reportedly comes after a three-year battle by Michelin boss Florent Ménégauxto get buy-in and convince decision makers at Michelin group that the increase was neccessary to help staff members he described as being left in “survival mode.”
The 134-year-old group makes heavy-duty tyres for construction and freight-handling companies. It has established living wages for employees based on their locations to correlate with living costs.
In addition, the living wage calculation was made based on what employees needed to provide for their family’s “essential needs.”
In Paris, the minimum wage workers will take home has been set at €39,638 ($42,300) per year. It is €25,356 ($27,100) in the more affordable region of Clermont-Ferrand. Both rates are well above the national minimum wage of around €21,203 ($22,600).
“The minimum wage in France is not sufficient in Michelin’s eyes to meet what we consider to be a decent wage,” Mr Ménégaux told Le Figaro.
Michelin’s wage initiative has reportedly been rolled out across its international bases. In the group’s US hub of Greenville, South Carolina, workers will receive a minimum salary of $42,235. In Beijing employees will earn at least 69,312 yuan ($9,600) per year.
Mr Ménégaux says he was inspired to make the change after Michelin signed up to the UN’s Global Compact; a voluntary initiative encouraging businesses to adopt sustainable and socially progressive policies. He represents Global Compact’s French network.
According to the group president, a review from the NGO Fairwage found that although the majority of staff were in a good financial position, 5 per cent were in “survival mode.”
He also pointed to increasing instances of former employees citing low salaries as the motivation for leaving. Michelin’s attrition rate rose from a previous figure of around 8 per cent in the past to 13 per cent in 2022.
Ménégaux reportedly said he had faced an uphill battle to persuade Michelin to make the living wage a reality.
“It took three years to convince within Michelin itself that wages needed to be increased,” he said.
Michelin posted record annual profits in 2023 and is valued at about $26.5 billion.
The tyre maker has a history of progressive initiatives for its employees.
Source: Fortune
(Links and quotes via original reporting)
French company Michelin has given its employees a significant pay rise following the discovery that the minimum wage in its home country had left some workers at breaking point, Fortune reports.
In a press release shared with Fortune and first reported by French publication Le Figaro, Michelin announced that it is rolling out its own living wage to 132,000 employees.
The wage hike reportedly comes after a three-year battle by Michelin boss Florent Ménégauxto get buy-in and convince decision makers at Michelin group that the increase was neccessary to help staff members he described as being left in “survival mode.”
The 134-year-old group makes heavy-duty tyres for construction and freight-handling companies. It has established living wages for employees based on their locations to correlate with living costs.
In addition, the living wage calculation was made based on what employees needed to provide for their family’s “essential needs.”
In Paris, the minimum wage workers will take home has been set at €39,638 ($42,300) per year. It is €25,356 ($27,100) in the more affordable region of Clermont-Ferrand. Both rates are well above the national minimum wage of around €21,203 ($22,600).
“The minimum wage in France is not sufficient in Michelin’s eyes to meet what we consider to be a decent wage,” Mr Ménégaux told Le Figaro.
Michelin’s wage initiative has reportedly been rolled out across its international bases. In the group’s US hub of Greenville, South Carolina, workers will receive a minimum salary of $42,235. In Beijing employees will earn at least 69,312 yuan ($9,600) per year.
Mr Ménégaux says he was inspired to make the change after Michelin signed up to the UN’s Global Compact; a voluntary initiative encouraging businesses to adopt sustainable and socially progressive policies. He represents Global Compact’s French network.
According to the group president, a review from the NGO Fairwage found that although the majority of staff were in a good financial position, 5 per cent were in “survival mode.”
He also pointed to increasing instances of former employees citing low salaries as the motivation for leaving. Michelin’s attrition rate rose from a previous figure of around 8 per cent in the past to 13 per cent in 2022.
Ménégaux reportedly said he had faced an uphill battle to persuade Michelin to make the living wage a reality.
“It took three years to convince within Michelin itself that wages needed to be increased,” he said.
Michelin posted record annual profits in 2023 and is valued at about $26.5 billion.
The tyre maker has a history of progressive initiatives for its employees.
Source: Fortune
(Links and quotes via original reporting)