PUBGY Publicis Groupe SA (QX)

By Olivia Bugault

Several French companies have said that they would pay bonuses to some employees in France in response to a speech by the country's President Emmanuel Macron aimed at defusing social unrest.

The list of French companies which followed Emmanuel Macron's bid for a national solidarity effort is getting longer with LVMH SE(MC.FR), Kering (KER.FR) and Valeo SA(FR.FR) saying Wednesday they are also backing the proposal.

Paris and other French cities have been rocked by antigovernment demonstrations in recent weeks, with protesters opposed to a planned fuel tax, low wages and social inequality. The protests and rioting have shut businesses and stores at the height of the Christmas shopping season, posing a risk to economic growth.

In an address on television Monday evening, Mr. Macron outlined measures aimed at soothing tensions, including raising the minimum wage and reducing taxes for some pensioners. He also called on "all employers who can do it to pay a year-end bonus to their employees."

French luxury group LVMH said that the end-of-year bonus proposed by Mr. Macron is an "excellent measure that will sustain purchasing power." The company will pay such bonuses, LVMH said, without specifying.

Automotive supplier Valeo and luxury group Kering also said they will pay one-off bonuses without giving further details, spokespersons said.

French telecommunications companies Iliad SA (ILD.FR), Altice SA (ATC.AE) and Orange SA (ORA.FR), as well as advertising firm Publicis, said earlier this week they will be part of the national effort. The latter is planning a one-off 1,000 euro ($1,135) bonus for about 1,600 employees in France whose monthly gross salary is below EUR2,500. Iliad said that 6,000 of its France-based employees would receive a similar bonus.

"It is time to assess our strength and gather goodwill to move forward, without forgetting the message of the yellow vests!" Orange Chief Executive Officer Mr. Richard said in a tweet late Monday, in which he said that the company will also offer a one-off bonus.

The companies said they would pay the bonuses once the law making them tax-exempt is passed.

Other big French employers such as Carrefour SA (CA.FR) and EDF SA (EDF.FR) said it was too early to say if they would take a similar step but didn't dismiss the possibility.

Write to Olivia Bugault at olivia.bugault@dowjones.com

(END) Dow Jones Newswires

December 12, 2018 11:14 ET (16:14 GMT)

Publicis Groupe (QX) (USOTC:PUBGY)
Historical Stock Chart
From Oct 2024 to Nov 2024

Publicis Groupe (QX) (USOTC:PUBGY)
Historical Stock Chart
From Nov 2023 to Nov 2024