Incentives 2022: Negotiations follow one another and look alike...

28 juin 2022

The negotiations on the 2022 profit-sharing ended with a feeling of dissatisfaction. As in other years, management is making proposals, but the room for discussion is so narrow, or even non-existent, that it is no longer a negotiation.

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A "Group share" that will be highly dependent on the evolution of EBITA

For the 2022 profit-sharing negotiations, management is asking for an increase in EBITA of +0.6 points, i.e. EBITA at 17.9% of sales. After a record year, Schneider has decided not to take into account the global situation (geopolitical tensions and war in Ukraine, rising raw material prices and inflation) when setting employee targets.
The CFTC estimates that the Group share should be around 1.5% in 2021.
After consultation, the trade unions have decided to put collective pressure on management.
In an open letter to the President of the French territory, the unions asked that the economic situation be taken into account. In response, management rejected the requests.

Nota :
EBITA rate 2018 = 15,1%
EBITA rate 2019 = 15,6%
EBITA rate 2020 = 15,6%
EBITA rate 2021 = 17,3 %

Any progress on the local share (SEI/SEF), linked to the open letter?

In 2021, employees were penalized by the industrial criteria, because with inflation and shortages, the planned level of productivity was not achieved. This year the problems are still present and the war in Ukraine amplifies them. Management and GSC have recognized these difficulties and finally agreed to lower the industrial performance objectives. After two meetings and taking into account the results at the end of May, the minimum thresholds for commercial criteria were lowered by 3% (sales and service growth). Despite this revision in the current services context, the target remains extremely ambitious.

For the past two years, management has been compensating for unachievable objectives by paying a "profit-sharing supplement". This system allows, once again, to calibrate the distribution of profit-sharing when it should be the result of realistic and achievable objectives corresponding to the performance of the company.
In order to apply, this agreement must be signed by all the trade unions.

In a context of loss of purchasing power the CFTC will sign the profit-sharing agreements

2022 06 27 Intéressement 27 juin 2022 2022 06 27 Intéressement 27 juin 2022