Failure of negotiations on unemployment insurance – Le Figaro

The social partners have officially recorded Thursday the failure of negotiations on unemployment insurance, referring the matter in the hands of the government, which decided to extend the current agreement.

the outcome was inevitable: the social partners have found this Thursday the failure of negotiations on unemployment insurance, sending the dossier de facto in the hands Government, announced the union negotiators twenty minutes after starting the final session. The negotiators reached an “agreement to disagree”, said the press Patricia Ferrand, VP Unédic and member of the CFDT delegation. Information confirmed by the negotiators of the CFTC and CGT.

In a statement, the CFDT and CFTC said they proposed “the establishment of decreasing contributions to unemployment insurance based on the length of contracts “and also discuss proposals to keep older people in employment. They add: “The employers had engaged in supplementary pension agreement in October 2015 to implement this taxation. He does not respect his signature. “

The government announced in the wake he regained hold of unemployment insurance after the failure of negotiations. In a statement, the Minister of Labour, Myriam El Khomri ensures that all job seekers compensated and those who become continue to receive their benefits “without suffering any inconvenience.” “As the law provides, in default of agreement between the social partners, the implementation measures of the unemployment insurance system are determined by the government, by decree of the State Council,” she said.

According to the minister, it is “the attitude of employers (that) led to the blocking,” while “ambitious measures on the table to balance the accounts of the regime”, including “to avoid sometimes abusive use of extremely short contracts. “

What the Medef responded by deploring the” dogmatism “of the unions concerned to” punish companies “through increases in their contributions.

a first since 1982

“tomorrow, the Government will take steps (…) to ensure immediate continuity of unemployment benefits by extending the Convention (… ) currently in effect beyond June 30, when it had to end, “added the Minister of Labour.

Regarding intermittent Minister transpose “without delay” the unanimous agreement by the entertainers in April. The decree will be “gazetted by mid-July.”

By extending the current agreement in the state, the government draws the line at least temporarily, on his promise to Brussels to achieve 1.6 billion euros in savings by the end of 2017. the last time that negotiations on unemployment insurance failed, it was in 1982. Even then, the negotiation was aborted because of a refusal of employers to increase contributions

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unemployment insurance, an impossible equation

the unemployment insurance scheme, managed since the late 1950s by the unions and employers, is breathless. With a stagnant unemployment rate above 10%, its deficit (4.5 billion in 2015) have accumulated. And debt explodes: it exceeded 25 billion end 2015 and reach 35 billion at end 2018, if nothing is done

2,500,000 of unemployment benefit recipients in 2016 (. forecast)

4.5 billion euros deficit in 2015 (estimate)

35 billion euros deficit accumulated by end-2018 (forecast)

23% of benefit recipients are over 50 years

1119 euros amount of average gross monthly allocation

11 months average benefit duration

99% of unemployed receive compensation less than 3872 euros per month

72% of average net replacement rate (compared to the old salary)