Unemployment of French cross-border workers: “a new discrimination” for OGBL and LCGB

Unemployment of French cross-border workers: “a new discrimination” for OGBL and LCGB
Unemployment of French cross-border workers: “a new discrimination” for OGBL and LCGB

The announcement that French licensees or employees at the end of their contract who have worked in Luxembourg will be able to receive less compensation in the future has sparked the anger of the country’s two main unions.

Friday November 22, LCGB et OBL have planned toorganize an event support for border workers. Considering that in the Grand Duchy employees coming from (????????125.700), Germany (????????52,500) or Belgium (????????51,700) had not the same social framework than their Luxembourg counterparts, or even among themselves. Of the ” inequalities » which justified in the eyes of the unions a reaction from the government rather than Luc Frieden atone on these issues since he took office exactly a year ago.

Limitation of teleworking, taxation, border controls: the list of “reproaches” was already significant but ongoing negotiations on the French side have just added fuel to the protest movement. This time, it’s about defend the unemployment system applying to French cross-border workers who lose their job and must be compensated by their country of residence. From January 2025, the compensation paid by Unédic could in fact undergo a drastic diet.

Of course, the measure has not yet been validated by the social partners but it is definitely on the table. Also, OGBL and LCGB do not hesitate to mention their “ consternation » in front of what the groups chaired by Patrick Dury and Nora Back describe as “ new discrimination “. And even if it is the French state which is at the origin of this deterioration, the two Luxembourg unions do not intend to sit idly by.

Pushed towards “proper work”

After the “ much criticized pension reform » on the French side (which will postpone the payment of a part of their pension for employees with a mixed career between two countries), LCGB and OGBL see only “ important social cuts with the simple aim of budget savings ».

Indeed, if Luxembourg pays France the equivalent of 3 months of unemployment compensation to these former cross-border workers, Unédic must then pay “out of its own pocket” the remaining compensation as long as the interested parties do not have not found a position. Calculated on a higher Luxembourg salary, the compensation is therefore – for an equivalent job – much more expensive than for a “classic” French unemployed person.

In fact, in 2023 for example, Unédic will have had to compensate 800 million eurosur own budget to pay compensation to 77.000 ex-frontaliers not having contributed to its funds (but in Luxembourg, Germany, Switzerland, Italy, Spain, etc.). The cumulative additional cost of compensating cross-border job seekers since 2011 would even reach 9 billion euros, some people are agitating.

As it stands, from January 2025, a reducing coefficient could apply to the current unemployment compensation system. With a separate coefficient per former country of employment… Knowing that in addition to the financial reduction in the amount paid each month, those registered with France Work having previously worked in a State, should have less “freedom” to refuse one or another offer of “suitable work” which will be addressed to them. And this even if, in terms of income, the position to be filled is much more unfavorable than their previous salary or the compensation awarded.

Currently, France has 5.1 million unemployedand 1.1 million job offers appear in the files of France Work.

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