Diversity of Compensation Policies and Wage Collective Bargaining in France

Abstract

The concomitant transformations of compensation policies and the wage collective bargaining system over the course of recent decades invite comparison between the two: how far are changes in pay practices and patterns of wage collective bargaining connected? How do actors bargain given complex and diverse compensation policies? These issues are examined on the basis of the French REPONSE 2004-2005 survey and two case studies carried out in the automotive sector and four call centres. Six compensation policy profiles are firstly identified, from the simplest to the most complex. Our results then emphasise that the diversity of compensation policies is echoing the variety of collective bargaining. Besides, they underline the impact of collective bargaining depends on compensation policies. Finally, we stress that several factors limit collective bargaining margins, or at least are used as such: individualisation of pay practices, directives from parent companies or contractors, as well as the statutory minimum wage.