(updated with statement by Olivier Véran § 10 and reaction of the CPME § 13)
by Myriam Rivet
PARIS, Sept 7 (Reuters) – The government on Wednesday laid the first stone of an already contested reform of unemployment insurance, with the presentation to the Council of Ministers of a text aimed at extending the rules of the previous reform, one of the markers of Emmanuel Macron’s first five-year term, the time for consultation with the social partners.
With this “bill on emergency measures relating to the functioning of the labor market with a view to full employment”, “we are asking Parliament to allow the government to decide to extend these rules until the end of 2023”, said explained the Minister of Labor, Olivier Dussopt, on franceinfo.
The current unemployment insurance rules, decided in 2019 and whose implementation has been delayed to 2021 due to the COVID-19 pandemic, expire on November 1.
The extension of the application of this reform, which had already been strongly contested by the unions, will allow the government to launch a consultation with the social partners on its new reform project, which will introduce – to the great displeasure of the unions – a modulation compensation for the unemployed depending on the economic situation, with the aim of tackling recruitment difficulties.
“We are going to contact the trade unions and employers’ organizations as part of a consultation,” said Olivier Dussopt.
As part of this consultation, “we can act on either the maximum duration of compensation – which is currently 24 months – or act on the conditions to be eligible for compensation – today you must have worked six months out of the last 24 months,” he added.
The amount of unemployment compensation “will not be our priority (..) because we are in a period where we are taking measures to defend purchasing power”, observed Olivier Dussopt, without however excluding this point from the debates.
NEXT STEP, RETREATS
As already stated by the executive during the previous reform, it is for the government to define new rules of unemployment insurance “which are the most incentive possible”, in order to “move towards full employment and solve ( the) recruitment tensions”, which will also require continued efforts in favor of training and integration, underlined Olivier Dussopt.
Alongside the discussions on these new compensation rules, Olivier Dussopt “will launch negotiations with the social partners on the governance of the unemployment insurance scheme”, the development of which is deemed “necessary” by the government, specified the government spokesman, Olivier Véran, during the report of the Council of Ministers.
If the trade unions have already made known their opposition to this reform project, the employers are in favor of it.
“Yes, we support this reform (..) because when you ask business leaders today (their) number one problem is recruitment. So we have to do this reform, quickly,” said Wednesday on France 2 the president of Medef, Geoffroy Roux de Bézieux.
The CPME (Confederation of Small and Medium-Sized Enterprises) also estimated in a press release published on Wednesday that “it is urgent to reform unemployment insurance”.
Regarding the pension reform – another project already contested by the unions and supported by the employers – Olivier Dussopt stressed that it remained “a priority” of the government, with a gradual entry into force from the summer 2023 in accordance with the objectives set by the Head of State.
According to the Minister, the first discussions with the social partners should begin “around September 15”, the date of presentation of the annual report of the Pensions Orientation Council (COR).
“On this basis, we will have the opportunity to discuss with the social partners, to share this diagnosis and then we will see what measures need to be implemented to both improve and balance” the system pensions, said Olivier Dussopt.
Announced by Emmanuel Macron between the two rounds during the presidential campaign, this new pension reform project is, according to him, essential to allow the financing of dependency and to establish, as he wishes, a floor level for retirement pensions, at 1,100 euros for a full career.
The Head of State had defended during his 2017 campaign another pension reform aimed at establishing a universal system and abolishing special schemes, but this project, which led to a major social movement at the end of 2019-beginning of 2020, was postponed indefinitely at the time of the health and economic crisis linked to the COVID-19 pandemic, before being definitively abandoned. (Edited by Nicolas Delame)