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Home»World»Europe»France
France

Unemployed Insurance Reform: LIOT Group Strikes Back with Proposed Law

May 21, 2024No Comments3 Mins Read
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In a parliamentary session at the National Assembly in Paris on December 19, 2023, Bertrand Pancher, the president of the parliamentary group Freedoms, Independents, Overseas and Territories, spoke out against the government’s proposed reform of unemployment benefits. He and other members of the group held a press conference on May 21 to present a proposed law aiming to protect the current model of unemployment compensation. This proposal is a response to the government’s plans to tighten the conditions for receiving benefits starting on July 1, which goes against the law for full employment that was passed in December 2022.

The proposed law emerged in response to the government’s attempt to make changes to unemployment benefits despite previously agreed-upon legislation regarding the issue. Pancher highlighted the inconsistency of the government’s actions, especially in light of the fact that unemployment rates have not decreased after a slight rise in 2023. The proposed law seeks to eliminate the principle of “counter-cyclicality” in unemployment benefits, which the government is already undermining. Additionally, it aims to abolish the government’s directive framework for negotiations between employers and trade unions regarding the redefinition of compensation norms, in favor of a less prescriptive approach that honors the original paritarian model.

The focus of the LIOT group’s proposed law aligns with their commitment to respecting intermediary bodies and social dialogue. They assert that the government cannot make unilateral decisions without considering the input of relevant stakeholders. Martine Froger, the rapporteur of the proposed law and a member of the LIOT group, emphasized the importance of honoring agreements reached between employer and employee organizations in November 2023. Their goal is to maintain the integrity of the social dialogue that is essential to the French model of labor relations.

The collaboration between the LIOT group and major trade unions, including CFDT, CFE-CGC, CFTC, CGT, and FO, showcases a unified front against the government’s proposed reform of unemployment benefits. By working together, they hope to protect the interests of workers and ensure that any changes to the system are fair and equitable. The LIOT group’s proposal represents a valuable opportunity to uphold the principles of paritarianism and social dialogue, which are fundamental to the French approach to labor relations.

Overall, the LIOT group’s efforts to challenge the government’s proposed reform of unemployment benefits reflect their commitment to defending the interests of workers and preserving the integrity of the social dialogue process. By presenting a coherent and comprehensive counterproposal, they aim to protect the existing model of unemployment compensation and ensure that any changes made to the system are done in a way that respects the principles of fairness and solidarity. The success of their initiative will depend on their ability to garner support from other parliamentary groups and relevant stakeholders to effectively oppose the government’s plans.

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