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Staff bonus scheme watered down

Proposals to make firms pay ‘€1,000’ bonuses at the same time as shareholder dividends have been made less restrictive

FIRMS that distribute dividends to shareholders will, under certain circumstances, have to pay bonuses to staff as well.

The government is working on proposals to help company employees benefit more from their firms’ success – however the measure, originally announced as mandatory, is becoming less rigid as discussions progress.

Budget Minister François Baroin had spoken of an amount of “at least €1,000” to be paid out to employees of firms distributing dividends.

Work Minister Xavier Bertrand then clarified that the measure would only be for firms whose dividends had increased.

Finance Minister Christine Lagarde has now said she is opposed to any fixed sum and that it would be a matter for negotiation between bosses and workers; furthermore, the measure may be linked to exonerations from social charges payments for firms, she said.

The president of employers’ organisation Medef, Laurence Parisot, who had said she was “astonished” by the initial announcements, said the latest clarification was “good news”.

Photo: Remy Steinegger

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