Unemployment insurance talks stalled by entrenched positions

Social partners met on Thursday, February 19, at Unédic headquarters to discuss amicable separations, but differences remain. The government requires at least 400 million euros in savings, while employers target one billion per year. The path to an agreement on February 25 appears narrow.

Since early January, employers and unions have been negotiating to meet the government's demand for at least 400 million euros in savings on the amicable separation scheme, established in 2008. This mechanism allows for mutual agreement between employers and employees to end contracts.

During the penultimate session on Thursday, February 19, employers' organizations stuck to their goal of one billion euros in annual savings, which they consider achievable. To support this, they tabled a series of measures totaling over 4 billion euros. These proposals go beyond amicable separations, touching on regimes for cross-border workers and performing artists.

The suggestions have provoked strong responses. The CGT, through its confederal secretary Denis Gravouil, announced heightened mobilization for the final session on February 25. "The employers do not count on the CGT's signature to reduce the rights of the unemployed, but we will make as much noise as possible, proportional to the attack we are witnessing," he stated.

Despite these discussions, positions remain entrenched, making an agreement seem elusive before the deadline.

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Spanish government and unions sign deal for 11% public sector pay rise until 2028.
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Government and unions agree on 11% salary increase for public employees until 2028

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The Spanish government and unions UGT and CSIF have reached an agreement to raise salaries for 3.5 million public employees by 11% from 2025 to 2028. This increase, including a variable component tied to inflation, aims to recover lost purchasing power. CCOO has not yet signed but is expected to decide soon.

Leaders of France's five main unions held an unusual press conference on February 23 in Paris, two days before the final unemployment insurance negotiation session. They reaffirm their opposition to employers' demands for 1 billion euros in annual savings. This move aims to safeguard workers' rights against the employers' broadened proposals.

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The year 2025 ends on a tense note between French employers and unions, highlighted by repeated failures in negotiations over pensions and employment. From the June conclave's collapse to the Medef's boycott of a conference proposed by Prime Minister Sébastien Lecornu, the appetite for joint construction appears lacking. These frictions emerge as the government aims to rely on these players to develop reforms.

Javier Milei's government is pushing for approval of its labor reform in the Senate by early February, convening opposition leaders. Meanwhile, Salta Governor Gustavo Sáenz warns of fiscal impacts on provinces, and Peronism presents an alternative project without a unified stance.

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In a joint committee plenary, La Libertad Avanza's officialism secured the majority opinion for the labor reform with 44 signatures, after removing the controversial Article 44 on sick leave. The opposition, led by Unión por la Patria, presented a counter-reform proposing shorter workdays and expanded worker rights. Meanwhile, the CGT called a national strike for February 19 in opposition to the bill.

The National Assembly adopted on Wednesday, November 5, an increase in the generalized social contribution (CSG) on capital income, proposed by the socialists to fund the suspension of the pension reform. Jérôme Guedj's (PS) amendment, supported by part of the government camp, aims to raise 2.8 billion euros in 2026. The measure passed with 168 votes in favor against 140, despite opposition from the right and the National Rally.

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The National Assembly has adopted a controversial measure providing for the temporary suspension of unemployment benefits in cases of suspected fraud. This provision is part of the bill on combating social and fiscal fraud, whose examination was interrupted in the night of February 27 to 28. Debates will resume after the municipal elections.

 

 

 

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