French unions split on unemployment plans

New rules for the French unemployed, which extend benefit rights but put more duties on claimants, were agreed last month.

In the French system these issues are subject to negotiation by unions and employers at national level rather than the government. They jointly administer the unemployment insurance body UNEDIC, to whom employees and employers pay insurance contributions.

A key element of the new agreement is a greater requirement on the unemployed to undergo training or to take jobs offered. In return, however, unemployment benefit is extended to those with a shorter contributions record and does not fall over time. In addition, contribution levels for both employees and employers are reduced and UNEDIC will give financial support to companies taking on long-term unemployed and those needing training.

One of the main French union confederations, the CGT, opposes the deal, as do two smaller confederations, the FO and CGC. However, the more moderate CFDT and the christian CFTC were willing to sign, and under French law this is sufficient. The employers' organisation Medef had threatened to withdraw from the running of UNEDIC unless an agreement was reached.