Unemployment Insurance Negotiations 2023: Government’s Framework Letter and Controversial Rules

2023-08-01 16:26:48

She was expected because time is running out. On Tuesday August 1, 2023, the government sent the social partners (who jointly manage Unédic) the “framework letter” on unemployment insurance. Since 2018, it is she who gives the “the” to the negotiations on the rules of compensation for the unemployed. According to the document, that West France was able to consult, employers and unions must agree on the new rules “by November 15”, for application from January 2024.

Little room for discussion

But their room for maneuver is limited. For the Ministry of Labour, there is no question of touching the ” acquired “ of the last two reforms which “contributed significantly to the reduction of the unemployment rate”down to 7.1% of the active population in France (excluding Mayotte) in the 4th quarter of 2022. The government wants to see this decline continue and reach the level of ” full employment “ (an unemployment rate of 5%) in 2027.

However, two rules are strongly contested by the unions: the calculation of unemployment compensation, made less favorable in 2019 for the most precarious, and the “countercyclicality of allocations” : the duration of compensation, reduced by 25% since February 1 for those who open rights, would only be extended in the event of strong economic and social deterioration.

Financing apprenticeships and the France Travail worksite

Despite weak growth in 2023 and 2024, and therefore modest job creation, Unedic indicated in June that it expected a stabilization and then a drop in the number of unemployed people receiving benefits by 2025, and accounts in the green: 4 .4 billion euros at the end of 2023, 5.4 billion in 2024 and even 8.7 billion in 2025.

In this framework letter, the government therefore indicates that it wants to dip into these revenues: up to 2 billion euros from 2023 (to go up to nearly 4 billion euros in 2026) in order to finance the policy “for the development of skills and employment”. On the program: the goal of one million apprentices in 2027, and asking Unédic to contribute 12 to 13% to France Travail in 2026, compared to 11% currently.

The National Assembly must consider the Full Employment Bill in October. Adopted in the Senate at first reading in mid-July, it aims to transform Pôle Emploi into France Travail and better coordinate the actors of the public employment service.

The CGT will seize the inter-union

Funding from France Travail “will be provided increasingly by unemployment insurance in parallel with a withdrawal of the State. Clearly, the government is asking us to continue to destroy the rights of the increasingly reduced portion of recipients compensated to better police the recipients of the RSA “, estimates the CGT in a press release. The trade union organization says it does not want “subscribe to such objectives” and intends to discuss with the intersyndicale “to make a concerted decision. The CFDT negotiator Olivier Guivarch first wants to “test the will of the employers’ organizations” to see if “passageways” are possible.

In 2019, negotiations failed

The government is also calling on the unemployment insurance scheme to halve its debt of 60.7 billion euros at the end of 2022 by the end of 2026.

In 2019, the last negotiations ended in failure, due to a framework letter that was too strict according to the social partners. The government then regained control and imposed its reform.

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