Purchasing Power Must Rise, and Work Must Pay Again

Jean-Claude Bourrelier, former head of Bricorama, argues that France’s high payroll charges are holding back wages and weakening competitiveness. He says employers are unable to return enough of the value created by workers, and that reducing labor levies would allow companies to pay significantly higher salaries without harming social protection. According to him, the current system makes it difficult for employees to live better from their work, because too much of their compensation is absorbed by mandatory contributions.

Bourrelier contends that France is one of the countries with the heaviest taxes and charges on labor. He contrasts today’s levels with those of the 1960s, saying social contributions have risen sharply over time and now consume around half of labor costs. In his view, cutting these charges would not be a gift to businesses but a way to increase workers’ purchasing power and strengthen pay across the private sector. He also argues that many of the existing payroll contributions are unfairly borne by employees, even when the benefits are indirect or limited.

He questions why workers should finance family policy, unemployment insurance, vocational training, routine medical checks, or social levies such as CSG and CRDS when they are not always the direct beneficiaries. He also calls for bonuses to be exempt from charges, like in the public sector, so employees can save more for retirement. In his view, returning to a much lower level of charges would make French wages more competitive and improve take-home pay.

To preserve the welfare system while easing labor costs, Bourrelier supports the idea of a “social VAT.” Under this approach, part of the funding burden would shift from work to consumption. He says a higher VAT would be offset for workers by the rise in net income resulting from lower payroll charges. He presents this as a way to protect social spending while freeing up labor and improving competitiveness against foreign firms.

Beyond tax reform, Bourrelier calls for greater responsibility from companies and individuals. He suggests firms should bear more of the cost of long-term sick leave and conventional severance arrangements, which he believes would encourage better workplace prevention, more careful hiring, and more caution in employment decisions. He also argues that people should carry more responsibility for risks they choose to take, rather than passing the cost onto society. In that spirit, he says some mutual insurance reimbursements, especially for optical and dental care, could be capped to help keep the system financially balanced.

Finally, Bourrelier says France must simplify its labor law, which he describes as overly complex and burdensome. He believes the country would benefit from a much leaner legal framework, similar to Switzerland’s, to save time, money, and energy for both employers and employees. He concludes by saying he regrets not speaking out more in public earlier, but insists it is not too late to defend the interests of workers and make his voice heard.