PARIS (MNI) – French industry executives expect salaries to remain
moderate this year, with annual gains of around 2%, according to a
survey by the Bank of France released Monday.

After slowing to 1.7% on average in 2009 from 3% in 2008, annual
base salary gains recovered last year to around 2%, with a convergence
across sectors that should continue in 2011, the central bank said in
its quarterly bulletin.

“In a context of high unemployment and uncertainty about the future
evolution of global demand, salary moderation would still appear to be
the rule for companies emerging from the crisis,” the report said.

Annual salary gains in large firms picked up to 2.2% last year,
while those in smaller firms continued to slow to 1.9% from 2.1% in
2009.

Similar trends were observed for net salary gains, with a slowdown
from 3.3% in 2008 to 1.6% in 2009 and a recovery to 2% last year.

“This trend should continue in 2011 at a slightly higher average
pace (+2.1%), reflecting a continuation of the slowdown in the
agriculture and food sectors and production of equipment and a slight
acceleration in other manufacturing sectors,” the report said.

The average annual rise in total salary costs per employer
recovered to 2.5% last year from 1.1% in 2009, regardless of the size of
the company, with increases led by equipment production (+3%) and the
transport sectors (+2.9%).

“In periods of crisis, the restrained rise in (fixed and variable)
remuneration allowed companies to limit costs,” the report said. Last
year brought a moderate recovery, “without returning to pre-crisis
growth and without a clear return to the spreads in salary costs seen
across various manufacturing sectors before the crisis.”

–Paris newsroom +331 42 71 55 40 e-mail stephen@marketnews.com

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