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The reform of unemployment insurance is on the agenda of the meeting between the President of the Republic and the social partners on Tuesday morning at the Elysee.
During their meeting at the Elysee on Tuesday morning, President Emmanuel Macron and leaders of trade unions and employers are likely to linger over unemployment insurance. And for good reason! Announced by the President himself at the Versailles Congress on July 9, the government decided to radically change its strategy to fight the precariousness of employment. In an amendment to the draft bill "professional future" under review in Parliament, he asked the social partners to renegotiate all the rules of unemployment insurance in September, with a view to a reform in the spring 2019. This negotiation will aim "in particular to change the current rules to better combat the precariousness of employment, encourage job-seekers to return to work, and review the relationship between insurance and solidarity", has made know Muriel Pénicaud, the Minister of Labor, during the examination of the bill in the Senate last week. In other words, the discussions will be animated.
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It must be said that the plan provided for in the initial text was somewhat flawed. In particular, professional branches were asked to negotiate a mechanism to limit the use of short contracts by the end of the year. Otherwise, the executive was given the opportunity to impose a bonus-malus on employer contributions to unemployment insurance by decree.
There are at least two reasons for this flip-flop that aims for a profound reform of unemployment insurance. On the one hand, President Emmanuel Macron has decided to take the word of the unions who accuse him of not respecting social democracy to lead this policy of "transformation" of the French social system. However, they will not have carte blanche. They will have to follow the guidelines of the executive-in a still unknown scoping document that will not hesitate to take back the hand if the negotiation fails.
On the other hand, at a time when companies are finding it increasingly difficult to recruit in the context of a solid economic recovery, the incentive to re-employ the current compensation system is questionable.
Towards a long-term indemnity
The concrete intentions of the executive still remain unclear. And no one is safe from a surprise announcement by the President by the start of the school year.
The only certainty today: this negotiation should at least resume the objectives originally set in the bill. It should therefore focus on measures to limit the excessive use of short contracts, which leaves the possibility of introducing a bonus-malus on the table. It remains to be seen … This promise of Emmanuel Macron's presidential campaign, which arouses the ire of employers and fiercely defended by the unions, is struggling to see the light of day. The social partners should also discuss the revision of the rules governing the accumulation of unemployment and wages for people with reduced activities. According to some observers, in some cases they do not encourage employers to recruit into sustainable employment and individuals to return to the labor market.
»READ ALSO – Unemployment insurance in the green, after 10 years Deficit
In addition, the executive wants unions and employers to think about the introduction of a long-term unemployment benefit that could go beyond the current two years. This raises the question of the fate of the Specific Solidarity Allowance (SSA) for people who have exhausted their rights. A sensitive subject
Emmanuel Macron receives unions and employers at the Élysée – Watch on Figaro Live
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