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The reform of unemployment insurance “is justified and it must be implemented”, assures the deputy chairman of Medef



Labor Minister Elisabeth Borne confirmed Tuesday, March 2 that the reform of unemployment insurance, suspended since summer 2020, will apply in full from July 1, 2021. This reform, which arouses opposition from unions, “is justified and must be implemented “, affirms on franceinfo Patrick Martin, deputy chairman of Medef.

“The accounts of Unédic, unemployment insurance, are in deficit of 17 billion euros this year. There are hundreds of thousands of jobs opened by companies which cannot find takers”, points out Patrick Martin. He specifies that the Medef “adheres to the solution which was proposed by the minister to condition the implementation of certain provisions of the reform at the level of unemployment and at the level of job creation. It seems intelligent”.

>>> Unemployment insurance: even modified, the reform will penalize 40% of the unemployed.

With this reform, on July 1, one in four new unemployed will see their rights reduced. 800,000 people will be affected. “There is a compensation floor that was planned, which will effectively result in a decrease in compensation, but not as violent as one might have feared”, recognizes the deputy chairman of Medef. “It is a subject to be kept in mind.” But according to him, “the best answer is that the activity is revived and to put in front of the open positions, the job seekers”.

Faced with the difficulty of millions of unemployed people who cannot find work offers adapted to their profile, Patrick Martin specifies that “The answer is not only in the reform of unemployment insurance. It is also in training. And there are spectacular advances that have been made”. But he claims that “It is a long-term job, we know that it is fine lace. We know that there is a very important territorial dimension”. There is therefore, according to him, all “a toolbox that still needs to be completed”.

Regarding the introduction of a bonus-malus system for companies based on their use of short contracts, Patrick Martin believes that “as the system is designed, it seems unsuitable, because we are going to compare companies that are not comparable “. He notably opposes “the SNCF, which has a very regular activity and stable jobs” with companies where there is “seasonal workers, short-term jobs” For example “everything related to tourism”.

According to the deputy chairman of Medef, “We are going to penalize companies which are to date among those which, because of the Covid, are the most penalized”. Patrick Martin finally points to the announcement made by Elisabeth Borne specifying that “where seven sectors should be affected by bonus-malus, there might be others. So it is a point of vigilance for the Medef”.

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