APC. In recent weeks, this acronym has been on everyone s lips. And why? Because this scheme, which stands for "Collective Performance Agreements", could well help companies hard hit by the Covid-19 crisis to get back on their feet.

In any case, Muriel Pénicaud, the French Minister of Labor, is widely encouraging companies in crisis-hit sectors to make use of it, to avoid redundancies. "Work less to earn less" seems to be the new fashionable slogan for this late spring!

Because one of the measures enabled by this scheme is to reduce employees salaries too. Which doesn t make it very popular with employees, who see it as blackmail!

So, are Collective Performance Agreements a magic solution or an attack on employee benefits?

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Collective Performance Agreements in brief

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What is a Collective Performance Agreement? The Collective Performance Agreement is a scheme that has been in existence since 2017. It allows an employer to negotiate with unions or employees about:

- Adjustments to the duration or distribution of work,

- The amount and conditions of remuneration,

- Professional or geographical mobility within the company.

And the special feature of this system is that it can of course be deployed in the event of cash flow difficulties (as is currently the case due to the crisis), but also at any other time, under the pretext of developing performance.

And while it serves corporate strategy, it must nevertheless be negotiated, depending on the size of the company, in consultation with union representatives or employees.

But it s all on paper. As we all know, even if negotiated collectively, this type of agreement will not satisfy everyone. So, is the employee free to refuse? Well, yes and no. They can refuse it (and they have one month in which to do so), but if they do, this is grounds for dismissal on real and serious grounds, with severance pay. It has to be said, then, that for the recalcitrant employee, the room for maneuver remains limited...

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A few timid attempts...

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While we still lack the hindsight to judge the effectiveness of the measures (since 2017, only around 300 companies have resorted to them, and in a far less dramatic economic context), several employers have already tried their luck in recent weeks... with varying degrees of success.

Ryanair, among the first, announced its intention to reduce the pay of its pilots and flight crews. And provoked a general outcry! In fact, it was quickly rejected by Muriel Pénicaud, who saw it as "blackmail", and for good reason: in the event of refusal by employees, Ryanair announced as an alternative a plan to lay off 3,000 staff... The Minister of Labour therefore called on the airline to "review its plans".

In the wake of this failure, companies have learned their lesson and are promoting the "French spirit" of social dialogue called for by Muriel Pénicaud. Gone are the days of unilateral plans; major strategic decisions are now decided at the negotiating table, with the various social partners.

At Derichebourg, an aeronautical subcontractor, nearly 700 jobs are on the line. In return for a substantial redundancy plan, management is proposing, within the framework of an APC, to do away with certain social benefits, such as the daily transport allowance and the 13th month s pay.

The daily L Equipe, dramatically affected by the stoppage of sporting events and the drop in advertising revenues, is proposing a general reduction in salaries and in the number of days of RTT granted to employees. In return, management undertakes to avoid any redundancies until 2024.

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An opportunity to give historic importance to social dialogue?

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But of course, not everything will be so simple... It s also an opportunity for employers to place social dialogue at the heart of all company transformations.

On both sides, negotiations will be tough but strategic: they will have the benefit of preserving jobs, boosting the company s competitiveness and, ultimately, contributing to the recovery of the French economy.

And there s no doubt that, although these performance agreements could logically be a real alternative to redundancies, they will be closely scrutinized by public opinion.

A century ago, men were sent to the front to die en masse in wartime.

In 2020, mentalities worldwide have evolved to such an extent that we prefer to sacrifice the global economy rather than the small proportion of the population vulnerable to covid-19 (a totally benign virus, it should be remembered, for more than 80% of us).

Today, then, the situation has changed. The example of the social fiasco initiated by Ryan air is symptomatic. Any injustice will be pinpointed and denounced... right up to the highest levels of government.

Indeed, the pressure is on, as evidenced by the demonstrations that began in front of Derichebourg s head office in Toulouse at the very beginning of June. Employees are determined to make their voice heard in the negotiations. Above all, they want assurances that these competitiveness agreements will not, in fact, be future redundancies in disguise.

If there are any sacrifices, they will have to be paid for in return, and lead to a return to competitiveness and employment, as the spirit of the scheme dictates.

This also means that exemplarity, particularly on the part of management, will be strictly scrutinized. Salary cuts must be effective for all staff, including senior executives and managers.

Admittedly, we still lack hindsight. But observers can only agree that mentalities are changing on the eve of this economic crisis. During the health crisis, human life was favored over financial life. And in the history of mankind, this is a rarity that is by no means insignificant...

So there s no doubt that when it comes to preserving jobs and avoiding human tragedy, public opinion will be on its toes. The next few weeks will show whether this movement persists or dies.

So it s up to our companies and HR managers to draw the right conclusions when it comes to conducting social dialogue with employees and social partners!