The government will set new rules for unemployment insurance from July 1

The government justifies this decision by the failure, almost two weeks ago, of negotiations between employers and unions on life at work and the employment of seniors. He “regrets this disagreement and takes note of it,” according to a press release from the Ministry of Labor.

The government, which wants to tighten compensation rules to encourage the resumption of activity, has not yet specified what will change, but it has already decided on the method.

The executive will issue "a deficiency decree" by June 30 which will have "the objective of helping to achieve full employment and promoting the rapid return to employment of unemployed people receiving compensation." As in 2019, employers and unions are once again losing control over the definition of these rules to the benefit of the executive.

The current unemployment insurance rules expire in principle at the end of 2023 but were extended by a “joining decree” until June 30.

The employers and three unions (CFDT, FO, CFTC) reached, after difficult negotiations, an agreement on November 10 on the compensation rules. But they had left the question of compensation for seniors unresolved, in order to first negotiate on their working conditions and continued employment.

These negotiations reached an impasse on April 10, with employers refusing to make new binding commitments while the unions wanted to obtain new rights for employees.

“Rackage”

However, the unemployment insurance agreement could not be completed in the absence of an agreement on the employment of seniors.

The resumption of the definition of the rules will be done after "a consultation" with the social partners but there will be no new framework letter asking them to negotiate again, a ministerial advisor explained to AFP. These consultations should begin “in the coming weeks”, according to the Ministry of Labor.

Furthermore, the government "welcomes with interest" the discussions on the universal time savings account (Cetu) and professional retraining which should conclude on Tuesday between an employers' organization, the U2P (craftsmen, traders and liberal professions) and unions, said indicated the ministerial advisor. But he does not plan to resume the agreement in full.

As early as January and without waiting for the outcome of negotiations on senior employment, Prime Minister Gabriel Attal announced that he wanted to "go further in the reform of unemployment insurance".

Last week, he recalled three levers to tighten the rules: the duration of compensation, the affiliation condition, i.e. the time you must have worked to be compensated, and the level of this compensation.

While emphasizing that "the three possibilities [were] open", he expressed his preference for a tightening of the affiliation condition.

“No avenue has yet been consolidated,” underlined the ministerial advisor.

Before the elected representatives of the majority, for some worried, Gabriel Attal argued that the measure had the broad support of the majority electorate - polls to support it.

The unions, which had fiercely fought the controversial reforms of 2019 and 2023, are up in arms.

“We cannot accept further reductions in rights after the destruction that has already taken place. And this announcement of recovery prepares a new destruction,” Denis Gravouil, the CGT negotiator on the unemployment insurance.

“Whoever wants to kill their dog accuses it of rabies”, was indignant in a press release FO, for which the government is “using the pretext” of the failure of negotiations on the employment of seniors to regain control of insurance unemployment.

“Being strong with the weak only lasts for a while,” Jean-François Foucard (CFE-CGC) also reacted bitterly, adding that it was up to the government “to assume the consequences on consumption and politics” reductions in rights planned for the unemployed.

For Cyril Chabanier, president of the CFTC, this announcement is not a surprise. “Now we must participate in the discussions on the new reform,” he said.

"Half of the unemployed are not compensated, this means that (...) it is not the pressure that we put on them which leads them to return to work", judged on France Info, Michel Picon, president of the U2P, “reserved” on the relevance of toughening unemployment insurance rules.