Will the decision be enough to calm the discontent of the unions? Elisabeth Borne announced on Tuesday the withdrawal of the controversial part of the decree on unemployment insurance announced on December 23, which was to reduce the duration of compensation by 40% if unemployment were to drop below 6%. Unveiled on Christmas Eve, this provision had angered unions and political opposition, especially on the left.
“We wanted to be transparent by displaying all the situations and the rules that would apply, including if the unemployment rate drops below 6%,” explained the head of government on France Info. “I hear that this point may not have been sufficiently discussed, so we will withdraw it, this third level of the decree which will come into force on February 1, and we will put this subject back in the consultations on the future rules of unemployment insurance”, announced the Prime Minister.
As announced at the end of November, the project provides for a 25% reduction in the duration of compensation for all jobseekers who open rights from February 1 in mainland France. But, a new fact, it had been envisaged that the duration of compensation could be reduced by 40%, and not by 25%, when the unemployment rate drops below 6% (it is currently at 7.3%).
Upcoming consultations
“The decree is not a surprise. It’s been months that the Minister of Labor has been consulting with employers’ organizations and trade unions on a principle that we want to introduce for unemployment insurance, which is to say that the rules evolve according to the situation of the labor market ” , also said Elisabeth Borne.
“Our intention is transparent: if unemployment is less than 6%, then we think it is the right compensation rule. But, in the decree which will come into force on February 1, as we are not at 6% unemployment, we are withdrawing this rule, we will put it back in the consultation for the future rules of unemployment insurance, ”a she concluded.
The Ministry of Labor clarified, Tuesday morning, after this announcement, that “the principle of countercyclicality is now in the law published on December 21 and will therefore be one of the central elements of the future negotiation of the social partners on the subject of the rules of compensation. from January 24.