The new unemployment insurance reform that aims to change the compensation rules in accordance with the state of the labor market will be presented on Monday, in a context of still strong and unanimous opposition from the unions.
The “labor market” bill, approved on Thursday by Parliament, opens the possibility, by decree, of modulating certain rules. Executive goal? Making unemployment insurance “tighter when there are too many job vacancies” and “more generous when unemployment is high.”
Despite the opposition of all the unions to the very idea of this modulation, denouncing an “unfair” and “ineffective” reform, the text planned for consultation, launched in October.
During a last multilateral meeting with the social partners on Monday morning, Labor Minister Olivier Dussopt will announce “the selected arbitrations”. In a context of outrage over purchasing power, the Government ruled out touching the level of compensation.
A minimum flat of 6 months
The Minister of Labor also assured that it would not affect the conditions of access to unemployment insurance, that is, the fact of having worked six months in a reference period of 24 months.
According to several trade union and employer negotiators who held bilateral talks this week with his cabinet, the Minister will announce that beyond a minimum floor of 6 months, the duration of the compensation will be modulated according to the evolution of the unemployment rate for all People who have had their contract end after February 1, 2023.
When the labor market situation is considered good, the duration of the compensation will be reduced by a coefficient to be announced on Monday, probably between 0.75 and 0.9, according to these sources. According to Sunday newspaperthe 75% rate would have been chosen, so a compensation period of 24 months would be reduced to 18 months.
The way to evaluate the unemployment rate -threshold, dynamic- will be specified on Monday, but if unemployment remains around its current level, that is, 7.3-7.4% since the beginning of the year, it will be applied the reduction of the duration, according to these sources.
The executive insists that there is urgency in the face of the difficulties in hiring companies, and makes this reform a cornerstone of his strategy to achieve full employment in 2027, that is, an unemployment rate of around 5% compared to 7 .4% current. An objective that the minister considers “always achievable”.
Source: BFM TV
