With one week to go before the final session scheduled for February 25, unions and employers' organizations remain entrenched in divergent positions in the unemployment insurance negotiations, initiated at the government's request. At the heart of the discussions: the regulation of negotiated terminations, which the government accuses of generating costly "abuses" for the system.
In 2024, 515.000 negotiated terminations of employment contracts were signed. According to Unédic (the French unemployment insurance fund), the benefits paid out under these agreements amount to €9,4 billion, representing 26% of total unemployment insurance expenditure. The government expects at least €400 million in annual savings from the social partners, while employers are aiming for €1 billion. The Prime Minister has warned that if the discussions fail, the government will take back control.
Opposing views on the savings to be made
The CFDT proposes enhanced support after a negotiated termination agreement, with two meetings at six and twelve months and a partial reduction of the allowance if no concrete steps are taken toward retraining. Employers consider this approach impractical, finding it difficult to quantify its effects precisely and criticizing the central role assigned to France Travail agents.
The FO and CFTC unions suggest extending the waiting period before compensation is paid, from 150 to 180 days, by including statutory severance pay in the calculation, whereas currently only above-statutory severance pay is taken into account. Employers' organizations oppose this, fearing a direct impact on the amount of settlements negotiated between employers and employees.
Irreconcilable positions ahead of the decisive meeting on February 25th
For their part, the Medef, the CPME and the U2P advocate a more structural modification of the system applicable after a negotiated termination: a 25% reduction in the maximum duration of compensation, a shortening of the reference period for affiliation and a lowering of the income threshold triggering the degressivity of allowances.
The CGT, for its part, rejects any reduction in rights and advocates for a penalty on employer contributions, raising the unemployment insurance contribution from 4,05% to 6,05% for companies that make extensive use of negotiated terminations. It warns that it will firmly oppose any reform deemed detrimental to employees.
The session on February 25th is shaping up to be decisive, in a context of strong tensions between social partners and under the threat of a government takeover.
