Unemployment insurance: social partners still awaiting a response from the government

"We will not participate in the meeting on January 28 if the government does not approve the bonus-malus amendment" concerning short-term contracts, warned Medef negotiator Hubert Mongon. He expressed regret at the lack of response to the letter sent last week to Prime Minister Sébastien Lecornu by the three employers' organizations and three unions (CFDT, FO, CFTC).

In addition to this agreement, this letter requests the publication of an implementing decree reducing the minimum period of affiliation for first-time entrants to unemployment insurance from six to five months, as well as the withdrawal of the framework letter sent by former Prime Minister François Bayrou inviting social partners to negotiate once again on unemployment insurance, with the aim of generating between 2 billion euros in savings per year from 2026.

Matignon did not comment on Thursday regarding a possible response.

"We are told verbally that a response will be given and that we will be heard," said CFDT negotiator Olivier Guivarch.

Negotiators attended presentations by experts on negotiated terminations at the Unédic headquarters in Paris on Thursday.

These experts reiterated that negotiated terminations are "a useful mechanism based on mutual consent and the right to unemployment insurance," according to the CFDT union. If the criteria for entitlement to compensation are changed, as employers' organizations are considering, "the behavioral effects could be very strong and have such an impact that estimates of potential savings will be inaccurate," Mr. Guivarch stated.

"Making changes in an untimely manner risks being counterproductive," stressed Jean-François Foucard (CFE-CGC).

Denis Gravouil (CGT) criticized a presentation by experts from France Travail, which stated that 18% of unemployment benefit recipients after a negotiated termination agreement were sanctioned for "shortcomings." According to him, these experts were unable to precisely define these "shortcomings," emphasizing that they did not constitute fraud.

Employers' representatives indicated that they did not question the existence of negotiated terminations, a mechanism used in 17% of terminations of employment contracts in very small businesses - compared to only 8% in companies with 50 employees or more, reported CPME negotiator Eric Chevée.

Beyond negotiated terminations, employers' organizations want to negotiate other parameters of unemployment compensation more broadly at an upcoming session on February 11, which the unions refuse.

Trade unions and employers' organizations have given themselves until February 25th to reach an agreement on negotiated departures, on which the government has asked them to find €400 million in savings. This overall financial target is considered insufficient by the Medef, the CPME, and the U2P, which are aiming for €1 billion in savings.

The negotiations on short-term contracts are expected to conclude on March 25th.