PARIS — About 200 Chanel employees demonstrated Thursday over salary conditions outside the company’s Neuilly-sur-Seine, France-based headquarters.

This story first appeared in the December 18, 2009 issue of WWD. Subscribe Today.

At issue was the 1 percent pay raise to be given to staff earning less than 3,000 euros, or $4,301 at average exchange, per month. They are demanding a 2.5 percent salary hike instead.

Chanel executives are surprised by the demand because the proposed 1 percent salary increase allows its employees to preserve their spending power and even raise it in the difficult economy, according to a spokeswoman.

She added only one of the four unions at Chanel called for the employees to demonstrate and also that all of the workers’ benefits have been renewed, and some of them increased.

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