Bibendum has decided to rethink remuneration based on purchasing power. The Michelin tire group announced Wednesday in Clermont-Ferrand the establishment of a “decent” salary and a “universal social protection base” for its 132,000 employees around the world.
This decent salary guarantees remuneration equivalent to the “living wage” as defined by the United Nations Global Compact, Michelin announced.
Allow you to purchase consumer goods
This salary should allow “each employee to provide for the essential needs” of a family of four (food, transport, education, health costs) but also to build up precautionary savings and acquire consumer goods.
“It is a logical commitment to all the group’s employees (…) You devote time to developing yourself and the company and in return we give you the means at least for a family of four individuals – two parents and two children – that a single salary allows them to consider housing, food but also leisure, a little savings, etc. “, declared Florent Menegaux, CEO of the Michelin group.
In France, this represents 39,638 euros per year for a gross salary in Paris, 25,356 euros in Clermont-Ferrand, where the group’s headquarters are located. The minimum wage amounts to 21,203 euros gross. In Brazil, Michelin’s “decent” salary is 37,347 reals (for a minimum salary of 16,944 reals) and in China 69,312 yuan (minimum salary of 29,040 yuan). “On average, the decent wage represents between 1.5 times and 3 times the minimum wage,” said Florianne Viala, director of compensation for the group.
Four weeks of paternity leave
By the end of 2024, Michelin’s 132,000 employees will also benefit from a “universal social protection base” which consists of maternity leave of at least 14 weeks and paternity leave of four weeks paid at 100%. In France, some companies, including the pharmaceutical group Sanofi or Abeille Assurances, offer longer paternity leave, from ten to fourteen weeks.
This base also aims to “protect the family of a deceased employee” with the payment of a death benefit of at least one year and an education pension for children, regardless of the employee’s seniority. Health coverage is also offered to employees and their families.
“France is extremely protected but we forget that there are a whole bunch of countries in the world where this does not exist,” underlined Florent Menegaux. “What we want is for people to be fully engaged in what they do,” he added.