In a social and political context especially tense, the pressure mounted on unions and employers, which will meet on Wednesday to negotiate the thorny reform of the rules governing the unemployment insurance. And this with the objective of making between 3 and 3.9 billion euros of savings over three years. For the fourth trading session, the management has planned to put on the table a written proposal, which may grind your teeth the government. It tackles the question of sources of financing of the unemployment insurance. Complex and technical, the folder is crucial, because the financing of the unemployment insurance program, whose revenues are around 36 billion euros per year.
Do not use variable fit
to be clear, the goal of management is to secure the financial contribution of the State to the unemployment insurance plan. The government has decided to remove the social security contributions wage paid to the unemployment insurance and replace them by the CSG in 2018. This means that the scheme is now funded by employer contributions and novelty, therefore, by a quasi-tax (CSG). Problem, this levy may be revised each year during the budget review in Parliament, as well as the extent of his signs to the unemployment insurance. And the employer does not intend to do harm. The warning is initiated to the executive: “we just want to secure funds. The employer’s contributions as well as the rights of job-seekers should not, in future, be the variable of adjustment of a system become a hybrid by the single decision of the government,” says the Figaro, Hubert Mongon, the negotiator for the Medef.
“One does not change anything to the philosophy of the device that remains insurance”
To do that, he’s no longer a question of establishing a two-tier system with a fixed allowance financed by the State (CSG) and the obligatory insurance, additional insured by employer contributions, as first considered by the Medef. “One does not change anything to the philosophy of the device that remains insurance. Therefore, nothing should change for the person,” insisted Hubert Mongon. To reassure the side of the unions.
In detail, the board proposes to guarantee, in law, the level of contribution of the State which shall be equivalent to the salary contributions that would have been paid if they had not been removed. This level should represent 37.5% of the total revenue of the plan. What would correspond today to 13.5 billion euros. The 62,5% of the remaining would continue to be provided by employer contributions.
The State will have to ensure specific expenses that he has imposed on
in addition, the board wants to define the expenditures that will be financed by the contribution of the state. In addition to funding a portion of the allowances paid to the unemployed, she should be able to cover the expenses imposed by the State itself, according to the logic of the employers ‘ organisations. It is, in particular, expenses related to the compensation of self-employed workers. With the law professional future adopted last August, this category of workers may soon be granted a right to unemployment insurance for a maximum period of six months, under strict conditions, but without having contributed to the unemployment insurance plan. The expenses related to the compensation of border workers are also covered, as are those related to the “extra cost” generated by the specific system of indemnification of the intermittents du spectacle. Advantageous, this system has cost € 1.3 billion to the unemployment insurance fund in 2017. Finally, a part of the financing of the budget of Pôle emploi should also be ensured by the contribution of the state, considers the employers.
Revision of compensation rules
in this session, the social partners will also be addressed for the first time the revised compensation rules for job seekers. A folder that is potentially explosive. And, in this social and political context especially tense, “we need to be more vigilant on what we do,” emphasises a source of association.
