employers and unions jointly denounce an “unacceptable drain” from Unédic

by time news

2023-09-29 05:28:09

In the midst of negotiations on the new unemployment insurance rules, unions and employers agree on at least one point: they reject the government’s desire to take a share of Unédic’s revenues, which provides for budget surpluses for the three next few years at least.

“Both in substance and in method, this plan to drain unemployment insurance revenues, even though negotiations are underway, is unacceptable”denounced the social partners in a joint declaration read, Thursday, September 28, by CFDT negotiator Olivier Guivarch at the end of a discussion session on future rules.

The executive intends to take two billion euros from the surpluses of the association co-led by the social partners from 2023 by decree, then two billion again in 2024 through the Social Security financing bill.

Read also: Article reserved for our subscribers Unemployment insurance: unions and employers open last chance negotiations

This drain, which could reach an amount of between 3.5 and 4 billion euros in 2026, according to the framework letter sent by the government to the social partners, “obstructs the ability to discuss adjustments to the unemployment insurance agreement”they add, affirming that they would not take it into account in the continuation of their negotiations on new unemployment insurance rules.

An obligation to borrow which will cost 800 million over four years

Through this drain, the government wants to finance public employment and training policies as well as France Travail. This new organization will in fact need additional resources to support nearly two million RSA beneficiaries for whom it will be responsible, in addition to the unemployed.

But the drain on the revenues of Unédic, which is heavily in debt, will force the organization to borrow in the short term on the markets to honor its repayment deadlines, which will cost it 800 million over four years.

Read also: Article reserved for our subscribers Unemployment insurance: the governance of Unédic still under debate

Unions and employers consider that the framework within which the government has set the negotiation on the future of unemployment insurance “is based on an objectively questionable financial trajectory, which risks ultimately weakening the economic balance of the regime”.

Only the CGT did not join this joint declaration. If she shares the substance of it, she has not endorsed it because she contests the savings requested by the employer party in the sectoral negotiation on compensation for intermittent workers in the entertainment industry – negotiation which will open in parallel with the discussions on the future of Unédic.

Read also: Article reserved for our subscribers Unemployment insurance: Unédic forecasts record surpluses by 2025

The World with AFP

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