Tahiti, April 17, 2022-After Edouard Fritch’s economic announcement in Congress, Medef Polynesia estimates that businesses will not be able to continue to pass on Smig or increased social security contributions to costs. “From now on, we need to secure the necessities. That is, economic development.”
What are your thoughts on Edouard Frich’s economic announcement in Congress, especially the rise of Smig?
“It’s a mechanical application of the law. It’s clear. The problem, and the president understands, is that there is no support for social protection without economic development. Still, ESF, PGE, and We were getting support from the country through loans to maintain public order from the country. That is already a problem. That is, we are getting out of a very difficult situation, the damage is clearly limited. But what I just said about Smig, starting with the 2% pre-acquired at the end of last year, will face a new situation, and tomorrow we will talk about pensions, which is next week’s CPS board. Behind the scenes, it’s clear that companies can’t. The rest of the increase to CO will continue to be covered without passing it on to selling prices … this is not covered by the Smig contract. It also applies to the salary of the company, and obviously to everything we import, so, as already mentioned, companies will find that they are malicious. And the president today, this base is You know well that you can’t carry the rest, whether it’s the company’s sales or the number of employees. From now on, you need to secure what’s essential: economic development. ”
Did Edouard Fritch say this morning that donations have declined in the short or medium term thanks to social VAT reforms?
“Contribution reductions have already been recorded in principle. It was the introduction of social VAT for contribution reductions. Now this is the conference we set up in October and how performance In any case, he recalled that the original purpose was certainly to reduce labor costs through a reduction in social burden. What he did was very important. Undeclared. The number of employees also done by fighting work. ”
One thing that was said this morning was that inflation forced some companies to cancel their public contracts because they couldn’t meet the prices they set just a few months ago. Is it a reality?
“Of course. However, some people managed to cancel the market before it started. But the worst thing is, especially when the business is already underway and the current public procurement law naturally allows the amount. For those who haven’t, and Medef has made some suggestions. Measures to allow those with an ongoing contract to adjust the amount, anyway, pay for a salary increase. You can receive This is something that was initially unpredictable. This is called unpredictability. Unpredictability is what is being dealt with in the mainland France market today. The country is now also in Polynesia. You have to do the same. ”