Though France , it has published a decree that forces unemployed French border workers to apply for jobs that pay less than their Luxembourg, Swiss or German jobs.
Concretely, the decree specifying the new constituent elements of the reasonable job offer (RJO), published on 21 March, “stipulates that it will now be the salary usually paid in France that will be one of the constituent elements of the RJO and no longer the salaries paid abroad… Jobseekers naturally remain free to look for a job in the country of their choice,” explains the press release issued by the French ministry of labour, health, solidarity and families on 22 March.
As a reminder, the RJO is an offer that corresponds, for a given jobseeker, to their level of qualifications and skills, their geographical location and the level of salary normally paid in the geographical area in which they are looking for work. In the event of repeated refusal, this determines whether or not unemployment insurance rights are maintained. European regulations currently provide for cross-border jobseekers to be compensated by their country of residence even if they have paid contributions in another country where they have worked. This is something that successive Luxembourg governments have always defended, whilst the European Union and the French government pays his or her unemployment benefits.
A deficit of €800m
“This compensation system in France has resulted in a deficit of almost €800m per year for the unemployment insurance scheme for around 77,000 jobseekers, due to higher salaries in neighbouring countries (Switzerland, Luxembourg, Germany) and longer time spent looking for a new job (cross-border jobseekers use up their rights more than other jobseekers: 41% compared with 37% on average in 2023),” adds the French ministry’s press release.
Unemployed French cross-border workers are therefore now forced to apply for job offers that pay less than their posts, at the risk of losing their benefits if they are repeatedly turned down. It should be noted, however, that “contrary to what has been relayed by certain media outlets in recent weeks, a reduction in the amount or duration of unemployment insurance compensation for cross-border jobseekers has never been on the government’s agenda,” the press release insists.
As this is a French decree, only the French CGT would have an interest in taking legal action, either before the competent French courts or before the CJEU.
In response to this new decree, several players have reacted, including the CGT trade union on the French side and the OGBL on the Luxembourg side, which have announced that they are considering legal action--at national and even European level if necessary. But is this feasible?
“As this is a French decree, only the French CGT would have an interest in taking legal action, either before the competent French courts or before the CJEU,” replies employment law lawyer Guy Castegnaro, interviewed by Paperjam.
“One argument that could be put forward is that of the compliance of such a decree with European law and in particular with the principle of the free movement of workers within the EU. The authority behind the decree, i.e., the French state, would be attacked.” But is it up to the unions to lead this legal “battle,” or would it have a better chance of success if it were led by individuals? “Probably both, provided that in France unions have the right to take legal action and that the unions and individuals concerned have a legitimate interest in taking legal action against this decree,” adds Castegnaro.
If an unemployed person is offered a job, it is in their interest to take it.
It’s not just the trade unions that are up in arms. The members of the European Confederation of Cross-border Workers--set up at the beginning of March--met on 24 March and decided to set up a legal unit to coordinate the defence of frontier workers, “to question the minister for labour and national and European parliamentarians about the action actually taken, aimed at revising European regulation 883/2004 and establishing bilateral agreements with neighbouring countries, as part of the financing of unemployment benefits for frontier workers, as proposed by the French Senate; and to question local and regional representatives about the impact of this decree on the economic attractiveness of their commune, their region,” says the press release.
Not about stigmatisation, says France
For the French minister for labour and employment Astrid Panosyan-Bouvet (Renaissance party, centre-right), “This decree is a first step in the action plan we are implementing to reform unemployment benefits for cross-border workers. This is not about stigmatising these workers, who are an essential component of the vitality of our regions and who will always be free to seek employment in the country of their choice… Lastly, it is about reforming the European rules on unemployment compensation for cross-border workers, which currently lead to a financial imbalance of almost €800m a year to the detriment of our unemployment insurance scheme.”
Questioned by Paperjam, Luxembourg’s minister for foreign affairs and foreign trade, (DP), replied: “I’m going to tell you honestly--and this won’t please everyone--but if an unemployed person is offered a job, it is in their interest to take it. We must encourage employment rather than encourage unemployment. I understand that social and salary disparities are problematic compared to the unemployment benefits they may receive, but for me, we are better off when we have a job.”
This article was originally published in .