Catastrophe in sight for unemployment compensation for French cross-border workers

The amount of unemployment compensation for cross-border workers is heading towards a very sharp reduction. After days of negotiations between the unions and French employers, the draft amendment appears to have been validated during the night from Thursday to Friday. Concretely, the text provides, to generate savings, to reduce compensation for unemployed cross-border workers who have worked in Switzerland, Belgium, Germany and Luxembourg.

The idea would be to introduce a coefficient, which will take into account the average salary between the country of residence and the country of the former employer, and thus modulate the amount of unemployment benefit. Implicitly, understand that the objective is to apply a coefficient proportional to the average salary level of the State of employment, Luxembourg in our case, more or less to the same average salary level in France.

A coefficient calculated on average salary levels

This coefficient, the extent of which is still unknown, will be applied to salaries received abroad during the reference period used to calculate the allowance. Reassessed annually, it would be calculated on the basis of average salary levels by country observed and published by the OECD. According to an estimate made by the CGT on November 8, “the average daily allowance could drop by 39% for a person who has worked in Luxembourg” (by 48% for Switzerland, by 17% for Belgium and by 9 % for Germany).

Furthermore, the social partners have asked France Travail for an action plan concerning specific support for cross-border beneficiaries as well as reinforced controls.

Since the announcement this Friday morning, negative reactions have been flowing, particularly from Luxembourg unions. “Such a decision completely ignores the entire cross-border dimension of our regions. Socially, it is very questionable and harmful,” enrages Christophe Knebeler, deputy secretary general of the LCGB. “Luxembourg should intervene in the matter. The risk of losing part of the French workforce, very important for us, is very great. I have the impression that we are talking about a decision with only a short-term vision. It’s suicidal,” he fumes.

On the side of the Frontaliers Grand Est association, we also wonder if such a measure does not risk generating a kind of discrimination. “It’s certain that if this reform passes, it will make a lot of noise,” says Julien Dauer, the director of the association.

For him, the main question concerns future job seekers. “When you have benefited from a Luxembourg salary, how can you offer a French job offer and a salary which will potentially be even lower than compensation for a former Luxembourg cross-border worker? How can we manage and offer reasonable job offers within the pay scale enjoyed by cross-border workers in Luxembourg?”

The manager also questions whether recalculating unemployment benefit in relation to cross-border workers does not even conflict with the principles of European regulations which provide for freedom of movement. Christophe Knebeler of the LCGB agrees: “The European courts will also have their say.”

Remember that this measure should make it possible to generate 350 million euros per year in savings at cruising speed, but only 80 million in 2025. According to Unédic calculations, at present, the system of Compensation for cross-border beneficiaries represents an additional cost of around 800 million euros per year. In the case of cross-border workers in the Grand Duchy alone, the bill amounted to 137.1 million euros in 2023.

How will the rest be organized? Over the next few days, the amendment will be submitted for signature by the various organizations. If there are a sufficient number of signatures, this will then be translated into an unemployment insurance agreement. This is where the amount of the coefficient should be ratified. The text will then be sent to the Prime Minister for approval. It is ultimately the latter who will decide whether or not to approve this new agreement.