the government puts pressure on the social partners

The government has decided not to approve, as it stands, the new unemployment insurance agreement resulting from the agreement reached between unions and employers around ten days ago. The State demands guarantees.

This is a surprise because usually the approval of a new unemployment insurance agreement is a formality. When the social partners reach an agreement on new rules for compensating job seekers, after weeks of discussions, the state gives the green light, but not this time! On Tuesday, November 28, the government gave itself a deadline and asked for guarantees from unions and employers.

The State wants to be certain that the savings announced on the employment of seniors will be realised. In their agreement, the social partners recorded, on Friday November 10, 440 million euros in savings over the period 2024-2027 in the senior sector alone, but they did not detail the method and measures to achieve this. And for good reason, they have referred this part to a new negotiation – a negotiation within the negotiation – which must open very quickly.

The government is waiting for this negotiation to be concluded and to have proof that unions and employers will achieve all the promised savings before validating. The State leaves the social partners until June 2024. Which means that the government would take back control and would override the social partners who manage the unemployment insurance system.

The government would then decide on its own the rules for compensating job seekers. Unions and employers alike do not want it because they would lose an important prerogative. The executive is therefore putting pressure on them to take measures on the employment of seniors. This sword of Damocles promises to encourage the social partners to discuss, find compromises and even close ranks against the government.

Towards a return of the inter-union?

Faced with this decision, the unions do not all have the same reaction. The CFDT wants to see the glass half full by saying that the government could have not ratified at all rather than leaving a delay. While for FO and the CGT, it is a new sign of distrust from Emmanuel Macron with regard to social dialogue. All the unions must meet on Friday, December 1 to see what action to take on the inter-union.

The social partners know that unemployment insurance does not mobilize the French like pensions or salaries, on the contrary toughening the rights of the unemployed has rather good press in public opinion. It is also the bet of the government, which intends to tighten the screw to achieve its objective of full employment at the end of the five-year term.