Wage Increases: Productivity, Profits and Inflation. [J.M. MARTIN]
+José-Manuel Martin Coronado Chief Economist +EMECEP Consultoría www.emecep-consultoria.com On May 11th, 2014, the French newspaper Le Monde published a story about the critique of wage increases of 29 % that had the head of the Société Radiale , Mr. Gattaz, current chief of the business association MEDEF (Movement of French Enterprises), whereupon he came out to defend that position. First, he indicates that the increase is divided into two parts, the fixed wage in 3 % and variable wage in 26%, while the wage of his employees increased by 3.3 %, taking it all in consideration the recent French inflation will be around 1% . The criticism rests essentially on the disparate increase has enjoyed this "boss of bosses " in the French business sector over other workers, which revives the old debate of what should be the determinants of wages .