The forty-eight hours of negotiations were unsuccessful as labor unions declared a failure in talks on the employment of seniors, jeopardizing government approval of the unemployment insurance agreement negotiated in the fall. The final text submitted to the employers’ organizations did not create any new rights for workers, leading to disappointment among the unions. Despite fewer rights being destroyed than anticipated, there were significant shortcomings in the agreement, prompting most of the unions to withhold their signatures.
The absence of a new right to gradual retirement was a major sticking point, with some unions believing that this could have changed the outcome of the negotiations. However, both the employers’ organization and the government argued that such a measure would be too costly. The lack of agreement from the CFDT was crucial in reaching a compromise, and it appeared unlikely that the agreement would be validated based on the negative statements from negotiators.
The government had pledged to translate the agreement into law if it was approved, aiming to increase the employment rate of seniors in France, which lags behind other European countries. The failure of the negotiations now gives the government the opportunity to take control of the situation. The Universal Savings Account (CETU), proposed by the CFDT but rejected by employers’ organizations, was also not included in the final text. The government has set a goal of a 65% employment rate for 60-64 year olds by 2030.
The issue of converting days off or taking early retirement through a countable time-off account is set to be the subject of separate negotiations in the future. This negotiation, initiated by the Union of Small and Medium Enterprises (U2P), the third largest employers’ organization representing artisans, professionals, and retailers, is scheduled for April 16. A meeting planned for the signing of an amendment on the compensation of seniors is postponed awaiting the final decision of the parties involved.
The Prime Minister has already announced plans to further tighten the conditions for unemployment benefits to encourage more people to return to work. The government is seeking to make savings in the unemployment insurance system to reduce the public deficit, so the social partners are expected to receive new guidelines for negotiating a new agreement in the spring. These negotiations will focus on finding savings in the unemployment insurance system as the government aims to cut costs.
In conclusion, the failure of the senior employment negotiations between labor unions and employers presents challenges for the government’s plans to increase the employment rate among seniors in France. The lack of consensus on key issues such as gradual retirement and countable time-off accounts highlights the difficulty in reaching agreements that satisfy all parties involved. The government’s intention to tighten unemployment benefits and seek savings in the insurance system further complicates the situation, signaling potentially contentious negotiations ahead.
