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Press release - Paris, January 19th 2012
What can we memorize from the Elysée «social summit»?

During his meeting with the employers’ and the unions’ representatives, the Head of State presented some measures supposed to fight against growing unemployment. Time will tell if they are efficient since his economical and budgetary policy remains the same.

During his “social summit”, Nicolas Sarkozy has just announced some immediate measures to try to curb dramatically growing unemployment, insisting on a global envelope of 430 million euros… by reorganising existing public funds.

The most important measure should increase the state budget effort in favour of partial unemployment to 100 million euros, to which 40 million more will add to offer training programmes to those employees experiencing momentarily partial activity. This is a modest progress regarding demands expressed by the unions, in particular by FO who argued that a country like Germany was devoting ten times more public money to such a plan (6 billion versus 600 million in France). The second measure is based on the total exemption of employers contributions in very small enterprises during the first six months of hiring a young worker (100 millions). This type of plan had already been tested in 2009 before being dropped, being too expensive.

The employment agency Pôle Emploi is asked to spare all the necessary attention to help unemployed people without any activity since at least two years (about 250 000 people) to find quickly either a job or a training programme (150 million euros). This commitment is not new since the Head of State had already promoted it in February 2011… with the results we know due to the lack of funding and to the absence of a real policy for economical recovery. Public service for employment will have 39 million euros more to enable them to recruit 1 000 people on a short-term contract basis to face rising unemployment on a ad hoc basis. Apart from being precarious contracts, these recruitments may be below the needs of the agency where each agent currently has to care of 150 unemployed people files.

Mr Sarkozy avoided talking about subjects that provoke anger among unions. “As far as the “social added value tax” is concerned : while avoiding this precise formula, the president did not renounce to the idea of a partial reduction of employers’ contribution to “family allowances” which will have to be financially compensated by taxes. The members of Parliament will be consulted about this “reform” by the Prime Minister in the days to come”, the delegation FO led by Jean-Claude MAILLY said at the end of the meeting. The Head of State did not talk about the “employment-competitivity pacts” at all.