Unemployment insurance reform: the government aims to achieve "2 to 2.5 billion euros" in savings per year from 2026 to 2029
The government has sent the social partners the "framework letter" on unemployment insurance, a roadmap setting out the framework for negotiating a new reform, with the objective of achieving "2 to 2.5 billion euros" in savings per year from 2026 to 2029 , according to the document, consulted on Saturday, August 9 by Agence France-Presse (AFP).
If they agree to open negotiations on unemployment insurance, employers and unions are invited to reach an agreement by November 15, and to generate between "2 billion euros and 2.5 billion euros" in savings per year on average over the next four years, "with a gradual increase" to reach "at least 4 billion euros in savings at cruising speed from 2030" , according to this document.
Arguing that "we must work more" , François Bayrou had hoped, on July 15 , that the social partners would open such negotiations on unemployment insurance to participate in the budgetary effort. "The financial situation of the unemployment insurance system and the need for more people to work make it necessary to change the rules of unemployment insurance" , wrote the Prime Minister in his letter to the social partners accompanying the working document.
“Totally unacceptable destruction”In order to "encourage a rapid return to employment" , the framework document adds that it will be necessary to "modify the minimum duration of employment and the reference period necessary to open a right to unemployment which determines the maximum duration of compensation" . France is "one of the countries in the European Union where the conditions of compensation are among the most favorable and has a maximum duration of compensation higher than the European average" , states the Prime Minister.
With the same objective of accelerating the return to the job market, the document states that it will be necessary to "strengthen incentives" for people who have concluded a mutual termination agreement and to "examine the opportunity to adapt" incentives for returning to work according to the level of remuneration and the amount of the allowance. The head of government adds that it will also be necessary to "intensify the effort made to help seniors return to work" .
"This is a totally unacceptable act of destruction," CGT representative Denis Gravouil told AFP. The union representative denounced "a brutal cost-cutting plan" that will affect "those in the most precarious situations, by extending the working hours required to qualify for unemployment benefits," but also "those on permanent contracts who have lost their jobs due to the announced reduction in the duration of compensation." "We will do everything we can to derail this project if this government stays in power," the union official warned.
"Total carnage"The trade union confederations had already angrily welcomed the government's budgetary proposals and the announcement of these negotiations, in particular the new tightening of the unemployment insurance system, described as "total carnage for job seekers" by the CFDT's leader, Marylise Léon.
Before an inter-union meeting on September 1 to study the follow-up to the Prime Minister's announcements, FO has already called for "mobilization and strike" and filed a notice from September 1 to November 30. The union organizations have also collectively launched a petition to say "no to the Bayrou budget" , signed by more than 300,000 people , and a platform for "decoding" the announced measures, which on unemployment insurance denounces a "new drastic reduction" in rights.
It remains to be seen whether these negotiations will succeed, or even take place. Otherwise, the government will take control and impose its rules.
This new reform comes as the social partners reached an agreement in November 2024 , with new rules for four years, most of which came into effect on April 1 of this year. In June 2024, a reform introduced by former Prime Minister Gabriel Attal, rejected by the unions, also planned to tighten access conditions and compensation rules. However, it was suspended due to the dissolution of the National Assembly.
The World with AFP
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