Michelin to introduce living wages globally

French tire manufacturer Michelin has taken a bold step to address the plight of its workforce by implementing a living wage policy for its 132,000 employees globally. This move comes after years of advocacy by the company’s leadership, who recognized that many employees were struggling to make ends meet on the existing minimum wage. Michelin’s living wage is tailored to different locations, reflecting the varying costs of living. For instance, employees in Paris will now earn a minimum of €39,638 ($42,300) annually, surpassing France’s national minimum wage. Similarly, workers in the U.S. hub of Greenville, South Carolina, will receive at least $42,235 per year. This initiative aims to ensure that employees can afford essential needs for themselves and their families, such as food, housing, and healthcare.

Inspired by their commitment to the UN’s Global Compact, Michelin’s leadership recognized the need for socially responsible policies. The company’s president, Florent Ménégaux, emphasized the importance of this initiative in light of findings that a portion of the workforce was struggling financially. Despite facing internal challenges, Michelin’s leadership persisted in championing this cause, ultimately achieving consensus within the company.

In addition to the living wage policy, Michelin is implementing a comprehensive social protection program called the Michelin One Care Program. This program includes benefits such as generous maternity and paternity leave, financial support for families of deceased employees, and educational assistance for orphaned children. Furthermore, Michelin is enhancing its commitment to lifelong learning by providing continuous training opportunities for all employees to enhance their employability.