Two days before the final round of negotiations on unemployment insurance, scheduled for Wednesday, the inter-union group is calling on employers to stick to the government's target of €400 million in savings. Employers' organizations, for their part, are aiming for a €1 billion reduction, a move that is causing significant tension.
Discussions are focusing in particular on the regulation of negotiated terminations, 515 of which were signed in 2024. According to Unédic (the French unemployment insurance fund), benefits paid following these terminations amounted to €9,4 billion. Unions believe that saving €000 billion would lead to excessively stricter compensation rules, at a time when unemployment is rising again.
Diverging proposals on compensation rules
Employers are proposing to reduce the maximum duration of compensation, modify the reference period used to calculate entitlements, and lower the income threshold at which benefits begin to decrease over time. However, they refuse to change the waiting period for compensation applicable after a negotiated termination agreement with above-statutory severance pay.
Several unions are proposing alternative solutions, such as extending the waiting period or providing enhanced support for beneficiaries after a negotiated termination agreement. The CGT is advocating for a penalty on companies that make extensive use of this system. Without an agreement on Wednesday, the discussions could end in failure, leaving the government in charge of any potential reform.
