On Thursday, employers proposed the establishment of a “senior permanent contract”. The purpose of this contract would be to incentivize the hiring of job seekers aged 60 and above. This proposal was met with apparent skepticism from union members. The meeting took place at the Medef headquarters and was part of negotiations aimed at increasing the employment rate of seniors. The government is targeting an employment rate of 65% “by 2030” for people aged 60-64, a significant increase from the current rate of 36.2% in 2022.
According to Medef negotiator, Hubert Mongon, the “senior permanent contract” would support older workers who have lost their jobs to re-enter the job market. This “hiring incentive contract” would be available “from the age of 60” and possibly earlier depending on sector agreements. It could potentially support an employee till retirement and could be combined with differential unemployment benefit in case it pays less than the previous job,” Mongon explained.
Mongon emphasized the benefit for employers of having “clarity on the retirement date, as retirement would be possible once full retirement conditions are met and not necessarily at 70 years as is legally required today.” The employer has the discretion to extend the contract beyond the full retirement age. Additionally, employers are contemplating overhauling the social retirement compensation scheme for senior permanent workers by eliminating the specific employer’s contribution of 30%,” Mongon added.
To avoid potential abuse of the system, a six-month waiting period would be implemented between dismissal and rehiring within the same company.
The proposal of a senior permanent contract was met with scrutiny and skepticism within union circles. Olivier Guivarch (CFDT), stated that this was not the focus of the negotiation and it would not impact the employment rate. He also argued that it contradicts the idea of combating stereotypes.
Jean-François Foucard (CFE-CGC) and Nathalie Bazire (CGT) also expressed their disapproval of the new contract. The discussions also covered topics such as part-time work and progressive early retirement. The CFDT noted that Medef showed “openness” to start the system earlier (at age 60 instead of 62), provided a financial impact assessment is carried out.
The leading union argued for making the employment of seniors a specific negotiation topic, pointing to a “disagreement” with the employers who are willing to add it to other topics. The social partners will continue discussions, especially on professional wear and tear. They plan to start working on a draft agreement from early March, aiming to conclude by the end of the same month.
