According to Unédic, the unemployment insurance reform could generate savings of up to 5.4 billion euros per year within four to five years.
The unemployment insurance reform planned by the government would allow savings of between 4 and 5.4 billion euros per year within four to five years, Unédic estimated on Tuesday.
In May, the government announced a target of 3.6 billion in annual savings. According to Unédic, savings would reach between 3.2 and 4.4 billion in 2027.
With the reform “there is either a delay in the acquisition of unemployment rights, or the exclusion of these rights, so it is quite massive”, explained the general director of Unédic Christophe Valentie during a presentation to the press of Unédic’s financial forecasts until 2027. The government plans to reduce by decree the maximum duration of compensation for the unemployed to 15 months for those under 57, compared to 18 months currently for those under 53 years.
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8 months out of the last 20 months
Obtaining rights will also be more difficult: you will need to have worked 8 months out of the last 20 months, compared to 6 months out of 24 months currently. Without even taking the reform into account, Unédic is expected to generate increasing surpluses until 2027, due to the effects of previous unemployment insurance reforms.
“One of the missions of Unédic is to provide information to the social partners to help them negotiate or consult with the State,” recalled the president of the organization Jean-Eudes Tesson, while the Commission National Collective Bargaining, Employment and Vocational Training (CNNCEFP) is due to meet on Wednesday to issue an opinion on the government’s draft decree, which was also submitted to the Council of State.
While the current compensation rules end on June 30, the decree could come into force on July 1, although the new compensation rules would only apply from December 1 for technical reasons. President Emmanuel Macron could specify during his press conference on Wednesday whether the reform of unemployment insurance, to which the unions are fiercely opposed, will actually be implemented without waiting for the result of the legislative elections of June 30 and July 7.
