Economy: the AGS threatened, unions and employers unite

The crisis is hitting many companies. The one where Valérie Cordier works, who can no longer pay salaries, is in liquidation. While waiting for a potential buyer, the wage guarantee insurance (AGS) allows him to continue to be paid for a month and a half. The organization guarantees the wages of employees whose company is in default. “The notion of security is very relative when you risk losing your job, but that gives us a little visibility of a month, explains the employee. It allows you to pay your loan, your rent.“In 2019, the AGS paid a salary to 183,600 employees, or 1.5 billion euros, partly from auctions of companies that have gone bankrupt.

The AGS was until now assured of receiving this money in priority. However, reform could change everything. Indeed, other creditors, such as court administrators, would take priority in its place. The AGS would then lose millions of euros. “What we fear is that the AGS will not recover these funds, that it will get into difficulty and that these difficulties generate big delays in paying the advances on wages.“, fears Michel Beaugas, confederal secretary of the Force Ouvrière union. The employers share this concern, and judge the period ill-chosen.

The JT

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