unemployment benefits increased by 1.9% on July 1, a “totally insufficient” increase for the CGT

This increase follows a first exceptional revaluation of 1.9% on 1 April. But, over one year, inflation stood at 5.1% in May.

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A rally of unions in front of Unédic's headquarters for the day of action and mobilization of precarious workers, June 27, 2023, in Paris.  (GAUTHIER BEDRIGNANS / HANS LUCAS / AFP)

An insufficient gesture for the unions. Unemployment benefits will be revalued by 1.9% on July 1, to the great displeasure of the trade unions who were asking for a revaluation at least equivalent to inflation. The decision was taken during a board meeting of Unédic “in a period still marked by rising prices”, specifies the body responsible for managing unemployment insurance. This increase follows a first exceptional revaluation of 1.9% on April 1, but remains below the high inflation of 5.1% over one year in May.

“This totally insufficient revaluation was voted by the employers’ organizations alone, while all the employee organizations abstained. [le vote contre d’une seule organisation syndicale aurait induit une non-revalorisation des indemnités], criticized the CGT. During a rally organized in front of Unédic’s headquarters, the union’s general secretary, Sophie Binet, denounced “a huge scandal” and attacked the employers, who refuse to go back on the unemployment compensation rules resulting from the last two reforms.

A failed negotiation

Since February 1, a 25% reduction in the duration of compensation applies to jobseekers who open up rights. In 2021, another reform had modified the calculation of the allowance, penalizing those who alternated periods of unemployment and employment. The government must send in the coming weeks “a framework letter” the social partners to renegotiate the unemployment insurance rules which expire on December 31. In the absence of agreement at the end of the negotiation, it is the government which will decide on the rules.

However, such an agreement seems to be off to a bad start. “The employers only want to negotiate the governance of Unédic and not the rules of compensation. They prefer that the government do the dirty work for them”denounced Sophie Binet. “But we will not agree to discuss governance if we do not discuss compensation rules”, she warned. This subject will be on the menu for a videoconference on Wednesday between union and employer leaders, who are to discuss a negotiating agenda for the start of the school year.


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