the reform is turning into clearer, 3.6 billion euros in financial savings anticipated

the reform is turning into clearer, 3.6 billion euros in financial savings anticipated

Barthélémy Philippe with AFP / Photograph credit score: MAGALI COHEN / HANS LUCAS / HANS LUCAS VIA AFP 7:37 p.m., Might 22, 2024

A goal of “3.6 billion” euros in financial savings and 90,000 further folks in employment: the contours of the unemployment insurance coverage reform, which shall be revealed on Sunday, have gotten clearer, together with an anticipated tightening of opening situations of rights. Matignon introduced on Wednesday that Prime Minister Gabriel Attal would make bulletins on this topic on Sunday. The format of those bulletins, press convention or media interview for instance, has not but been determined, stated Matignon. The Minister of Labor Catherine Vautrin, who started receiving the social companions on Wednesday, revealed the avenues that maintain the rope.

First to be acquired, the president of the CFE-CGC François Hommeril knowledgeable AFP, on the finish of a “pretty tough” assembly, that “the situations of affiliation can be tightened”: it will likely be essential to have labored eight months over the last 20 months, as a substitute of six months over the last 24 months at the moment. The ministry confirmed this lead, whereas emphasizing that Catherine Vautrin wished “the federal government copy to evolve following these consultations”. The federal government expects “3.6 billion” euros in financial savings with this reform, and the target is to extend the variety of folks in employment by “90,000”, the identical supply stated.

“The pockets of the unemployed”

On the union aspect, the reform is hotly contested. For FO primary Frédéric Souillot, who noticed Catherine Vautrin at noon, “taking issues by hitting job seekers or lowering the chances of being compensated will not be taking issues the best manner.” Her CFDT counterpart Marylise Léon, who shall be acquired on Wednesday night, additionally criticized on BFM Enterprise a reform to “make much more financial savings” by choosing “the pockets of the unemployed”.

After the failure of negotiations between employers and unions on life at work and the employment of seniors, the Ministry of Labor introduced on the finish of April that it might set the brand new guidelines itself by “a deficiency decree” with a call efficient July 1. Prime Minister Gabriel Attal, who was absolutely dedicated to this situation upon his arrival at Matignon in January, listed three levers for altering unemployment insurance coverage: the length of compensation, the situation of affiliation and the extent of ‘compensation.

At this stage, solely the situations of affiliation are talked regarding, a provision which “has extra speedy results” on employment, in response to Renaissance MP Marc Ferracci, inspiration for the primary unemployment insurance coverage reform of the five-year time period. This provision would significantly have an effect on beneficiaries underneath the age of 25 or these leaving a fixed-term or non permanent contract. The extension to extra sectors of the bonus-malus, a system to fight the abuse of quick contracts, can also be among the many avenues. FO is looking for the penalty bonus to be generalized and prolonged to non permanent work. A strengthening of “countercyclicality” can also be envisaged with an extra discount within the length of compensation if unemployment falls under 6.5% in comparison with 7.5% at the moment (this is able to generate 3 billion euros in further financial savings).

“Softened”

François Hommeril additionally indicated that the federal government needs to create a “resumption of employment bonus” for seniors aged 57 and over, and on the identical time cap compensation for unemployed folks near retirement. An “anti-executive” measure for the commerce unionist. In the end, Matignon’s line has softened “a bit”, in response to authorities sources and within the majority, the place the left wing had stepped as much as the plate. The Prime Minister “needed to retreat on the length of unemployment compensation”, in response to an MP from this left wing.

However the unions, which had fiercely fought the controversial reforms of 2019 and 2023, are as soon as once more up in arms. They gave their assist on Tuesday to a invoice from the Liot group which goals to stop “an excessive amount of reform” and should be examined within the Nationwide Meeting on June 13, the place a number of teams are hostile to the reform, reminiscent of that of the deputies PS who denounced on Wednesday “a historic social regression”. Frédéric Souillot stated he had clarified to the minister that FO would assault “its decree within the Council of State”.

On the employer aspect, Medef President Patrick Martin helps the thought of ​​guidelines “much more encouraging to return to work”. The president of the U2P Michel Picon stated in mid-April that he was “reserved” concerning the relevance of tightening the principles once more, particularly since “half of the unemployed aren’t compensated”.

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