The demand for a decent wage is not just a matter of controversial political philosophy and trade union demands. It is also embodied in Michelin’s announcement in the spring of 2024 that it would guarantee a decent wage for all its employees worldwide.
In the midst of the French debate on the smicardisation[1] of wage earners, purchasing power and the working poor, the multinational, founded in 1889, is breaking new ground. Its proposal is part of a dual tradition. The first is the historical tradition of a company committed to social protection, in the tradition of paternalism. Under this outdated name, which today has a negative connotation, lies a series of social projects that the tyre giant first deployed in its Clermont-Ferrand region, with nurseries, clinics, housing assistance and other benefits for families. Secondly, Michelin’s announcements confirm its commitment to a much more recent movement, namely that of companies around the world that are committed to establishing social protection floors.
The idea of a living wage is to pay enough to allow not just a subsistence minimum but a decent life. The amount is calculated: wages are set at a level that should enable a family of two adults and two children to feed and house themselves, but also to build up precautionary savings so that they can plan ahead. This scale, established for this family configuration, can be applied to other types of household. It also varies according to location (country but also regions within countries) to take into account differences in purchasing power. In addition to this living wage, Michelin, like other French companies, offers a wide range of preventive and provident services, with a minimum base of services and guarantees valid throughout the world.[2]
This international minimum floor supplements national social benefits where they are insufficient (below the floor level). It makes up for their absence when they are non-existent. Under the name ‘Michelin One Care’, Michelin guarantees all its employees, throughout the world, benefits based on three priorities: time to welcome a child (a minimum of 14 weeks paid maternity/adoption leave and a minimum of four weeks paid paternity/adoption leave at 100% of salary); protection of the family in...
