unions and employers consider it “unacceptable” to charge Action Logement

A new battle between the government and the social partners? The latter judged on Monday, September 26 “unacceptable” to impose on the Action Logement a contribution of 300 million euros, as envisaged by the executive in its draft budget for 2023. Action Logement (formerly 1% Logement), the leading French social landlord, managed by employers and trade unions, is the subject of recurring battles with the State over the use of its significant financial resources, resulting in particular from social security contributions from companies.

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In the 2023 finance bill presented on Monday, the government plans to make it a contribution again, to the tune of 300 million euros, to top up the National Stone Aid Fund (Fnap), which supports the construction and renovation of social housing.

“The social partners, jointly responsible for this body which manages the former 1% Housing for the benefit of employee housing, cannot accept such a levy”write in a joint press release the trade union organizations (CFDT, CGT, FO, CFE-CGC and CFTC) and employers (Medef and CPME) which pilot it.

Since 2019, Action Logement has embarked on a colossal investment plan to build social and intermediate housing and has expanded the beneficiaries of its housing aid, including the Visale rental guarantee. In this context, it has provided an additional 300 million euros per year to the national stone aid fund (Fnap), an essential cog in the construction of social housing. A contribution supposed to end in 2022.

“The choice made on Action Logement’s contribution to the financing of housing aid is part of an overall position on the financing of the sector, which is that of securing the balance resulting from the 2019 pact in the face of objectives that we know are ambitious in terms of new production and renovation”replied to AFP the entourage of the Minister Delegate for the City and Housing, Olivier Klein.

That “does not jeopardize, at this stage, the financial health of the group” and “the will is to continue the discussions” on the next five-year agreement between the State and the group, which must be negotiated before the end of the year, adds the entourage of the ministry.

This is “an unacceptable decision and an affront to jointism”retort the social partners, for whom “without the withdrawal of this puncture by the government, it will be difficult to fully restore confidence”. The Minister goes, from Tuesday to Thursday, to the Congress of the Social Union for Housing, representative of social landlords, where he is to discuss the financing of social housing.


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