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Foundations for Understanding the Context – Base Elements

Foundations for Understanding the Context – Base Elements. Meeting in La Rochelle & Marennes France 14 -15 march 2013. Base salaries and Social Assistance. Monthly Minimum Wage (Brut): 1430,22€ Hourly Minimum Wage : 9,43€ Specific allocation long terme unemployed : 477 €

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Foundations for Understanding the Context – Base Elements

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  1. Foundations for Understanding the Context – Base Elements Meeting in La Rochelle & Marennes France 14 -15 march 2013 programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  2. Base salaries and Social Assistance • Monthly Minimum Wage (Brut): 1430,22€ • Hourly Minimum Wage: 9,43€ • Specific allocation long terme unemployed : 477 € • Adult Handicap Allowance:776,59€ • Active Solidarity Revenue (single person): 483,24€ programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  3. Guideline Figures – FourthSemester 2012 • Beneficiaries of Employment ( or Unemployment ) Insurance: 9.9% • Unemployment rate (women): 10% • Unemployment rate ( under 25 yrsold): 24.2% • Numberseekingemployment in Category A (excludingreducedactivity): 3,132,900 • Total employmentseekers: 4,917,500 • Total employmentseekers for over 1 year: 1,965,100 • Number of beneficiaries of social welfareallowance: 1,877,000 programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  4. SuspendedEmployment • Thirdtrimester 2012, hexagonal economy destroys 41,700 jobs in the merchantsector (-0.3%) • Intermittent employment positions reduced (-5.7%) • Creation of employment in the non-merchantsector (+19,000) does not re`ompense the losses (or a total of -36,700) programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  5. A Rise in the Active Population • Demographicallink (France’sfertility rate at 2.1, Europeanaverageat 1.5) • Permanent rise in femaleemployment rate • Politics of prolongation of time length of senior employment programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  6. Continual Rise inUnemployment Rate • French Observatory of EconomicConjunctures (OFCE) declares a 10.7% unemployment rate by the end of 2013, or 3.3% more thanpre-crisis programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  7. Inequalities in Unemployment • Slightrise in femaleunemployment to 10%, frompreviousequalitywith male unemployment rate of 9.7% • Inequality in the under 25 age range: 24.2 • Rise of justunder 40% for activity rate of 55-64 age range by end of 2007, today rate isat 48.3% • Inflation of unemployment rate for over 50 age range, at over 6%, from 4.9% to 6.9% programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  8. The Value of Training againstunemployment Insee 2011 – Unemployment Rates • No Diploma: 15.9% • CAP and BEP Diploma: 9% • BaccalaureateDiploma: 8.7% • UniversityDegree (Undergraduate): 5.1% • UniversityDegree (Graduate): 5.6% programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  9. Overview of Unemploymentaccording to socio professionalcategories • Executives: 3.8% in 2011 to 3.2% in 2007 • Intermediary Positions: 5% to 4.6% • Employees: 9.8% to 8.2% • Workers: 12.9% to 10.6% programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  10. Flexibility – Pre Law Project March 2013 programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  11. Recourse to precariouscontracts • France is one of the European countries in whichrecourse to precariouscontractsismostfrequentat 15% of total employment (Germany 13.8, Spain over 20%) • France isalso on the countries to mostfrequentlytakerecourse to contractsinferior to threemonths; 5.8% of employment in France, over the Euro Zone average of 4.4% programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  12. A rise in precariousemployment • Explosion of short-termcontracts: • +88% of one monthcontracts • +120% between 2000 and 2010 for contracts of one week or less programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  13. Is France a Country thatOverprotectsitsEmployees? • According to the OCDE, permanent employees in France are protectedagainstemploymenttermination • Employment protection againstindividualemploymentterminationremainslimited • The OCDE situates France amidst the countries with the least protection for collective employmenttermination programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  14. Minimum WageSecurity • France’s minimum wage figures are amongst the highest in the Euro Zone (althoughitremainsinferior to those of Luxembourg, Ireland, Netherlands and Belgium) • The rate of poorworkers in the country isat 6.1% against the Euro Zone average 6.7% programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  15. Work Time • The 35 hourworkweek in France has onlyslightlyfallen 0.2 hours per weeksince the crisis, against 0.5hours Euro Zone average (Germany 34.6 h, Denmark 33.7 h and Netherlands 30.4h) • If France reducedwork time to Netherlandlevels, itwouldcreate 15% of supplementary positions, or 3.4 million jobs programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  16. PreexistingMeasures • Flexibility • Jurisprudence 2006 Anticipation of ProvisionalDifficulties • Conventional Rupture 2008 • Security • Right to Individual Training ANI 2003 and Portability 2009 • EquityFunds for Career Security 2009 • Professional Protection Contracts (lay-off/redundancy) programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  17. France and the Danish Model • According to Eurostat, with 6% unemployment in 2009, Denmark spent 3.2% of its GIP to compensate , train and supervise the unemployed; France spent 2.4% of its GDP to take charge of 9.5% of unemployed • If France wants to put in place a Danish style Flexisecurity, the country would have to spend an extra 51 billion Euros (or +2.7% of its GDP) programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  18. Accord resulting from the Social Dialogue of January 2013 programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  19. Flexibility 1 • Taxation principles for Fixed Term Contracts (FTC): rises from 4 to 7 points with • +3 points for FTC of less than one month • +1.5 points for FTC between one and three months • +0.5 points for courant FTC • Maternity replacements and temporary work excluded programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  20. Flexibility 2 FacilitateVoluntaryInternalMobility • Allows employees to test a new firm for one year, retention of job guarantee with initial enterprise • Facilitates mobility in the same enterprise between two sites under reservation of maintenance of initial wage and non-disqualification of employee (this measure collides with BIT recommendations and will be defined by law) programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  21. Flexibility 3-1 Employment Maintenance Accords - The Employment Protection Plan • Drop in employee work time or wage • -Majority Accord Valid 2 years • Employees at less than 1.2 times the minimum wage are not concerned programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  22. Flexibility 3-2 • Competitive Employment Accords- The Employment Protection Plan • Social programmes and economicdismissal • -Majority Accord approved by Administration (8 days) • -Unilateral Plan Administration Accord (21 days) programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  23. Security – 1 • Complimentary Health Coverage obligatory as of January 2016, financed in part by employer, portable for 1 year in case of employment loss • Personal Training Account: supplied be 20 hours per year for up to a limit of 120 hours of training (extension of DIF) • Protected external mobility: leave of absence for training purposes with job guaranty (firms of over 300 employees programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  24. Security – 2 Renewable Rights to Unemployment Insurance: • Retention of rights to unused compensation in first insurance period and accumulation with all or part of recently acquired rights • Related to new negotiation plan and Employment Insurance convention to be negotiated in 2013 programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  25. Security – 3 • Part time employment guidelines: • Limited to 24 hours minimum (except students and personal employers) • Dispensation possible withbranchapproval • Payment of overtimehours +10% • Employee representation at administrative councils for enterprises with 5,000 employees (in France) or over 10,000 employees for multinationals: • Two employees retain a deliberative voice and sit in at administrative councils programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  26. Provisional Schedule • National Assembly auditions – Commission for Social Affairs • National Assembly Debate – Starting April 2nd 2013 • Senate Debate – Starting April 17th 2013 • Objective – Applications as of May 2013 programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  27. Flexisecurity Identification of Action Levers programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  28. Employment Anticipations Economic Needs Analysis of Territories and Enterprises programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  29. Provisional Management of Jobs and Qualifications • State Competence (DIRECCTE) • -Law of 18/01/2005 obliges the negotiation of GPEC every three years for enterprises of more than 150 employees • -Territorial PMJQ ANI of 18/11/2008 • PMJQ allows for: • -Definition of geographical sector action parameters • -Modalities, engaged partners, governance, procedures target programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  30. PMJQ (GPECT) – A Competitive Stake • Objectives of the PMJQ • Enterprises: reinforcement of employer-ability • Identify gaps between available resources in a territory and upcoming human resource needs in view of economic evolution • Territories: reinforcement of patrimony attractiveness • Anticipate economic mutations and employment evolution in a determined space with regards to enterprise reaction • Individual: reinforcement of employ-ability • Reinforce career security by adapting specific skills and training to enterprise needs programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  31. Assistance to employment seekers programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  32. Measures by the Employment Centre (Pole Emploi) • Training action prior to recruitment -Six month minimum workcontracts • Individual POE 12 month minimum workcontracts For thesetwomeasures • -Assistance in skill acquisition (maximum 400 hours) after signing work contract • External training: 8 Euros per hour up to 3,200 Euros • Internal Training: 5 Euros per hour up to 2,000 Euros • -Work Placement statute for professional training • Collective POE Action implementation in partnership with an OPCA after study of enterprise need Financing base by Pole Emploi, Additional training fees funded by the OPCA • Re-Employment Assistance -Transport: 1,000 Euro limit -Housing: 1,200 Euro limit -Moving: 1,500 Euro limit programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  33. Training Facilitation • The State • -Qualifications • Key qualifications acquisitions: recommendation of the European parliament et of the December 18 2006 council acting on key qualifications for continued education and training (Official Journal L394 30/12/2006; • Non-paid training • Credit for 400 hours per year • Employment Centre • Approved and regulated actions -Duration of 600 hour average and budget of 3,000 Euros • -The action of approved training represents an opportunity to bring employee to level with current enterprise and market demands, • -Skills and Qualifications - (technical knowledge, transport licensing, foreign languages, etc.) -Diplomas – important for certain activity sectors (nursing aid, children, etc.) • When implemented collectively, regulated training actions take place in training centers. Specific training action results from hiring needs and qualifications specified by potential employers. Hiringfollows. • When implemented individually, subsidized training action can also be positioned in a process of Validation of Acquired Professional Experience (VAE), facilitating the validation success. • Individual training action • Eligible training courses (7 criteria) • 1,500 Euro limit programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  34. RegionalCompetences • Regional Development Plan of Professional Training Course Contracts • The SPRF • -Credit for hours for a maximum duration of 24 months allowing access to a level IV to V qualification • -Individualized, paid training • The PRDF • -Specific training action outside of SPDR field of competences • -Paid training, group qualifications and coordinated courses • RegionalFinancing for Individual Training • -Specific qualification action other than SPDR and PDRF competences • -Based on maximum income of fiscal household 20,900 Euros, duration of initial training and superiority of financial benefit of training • -Maximum 8,000 Euros if specific qualification is registered in the National Repertoire of Professional Competences • -Maximum of 2,000 in all other instances programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  35. EmployeeLay-Off • Regional Contract for Professional Career Security • Guarantee of complimentary allowance from Employment Center (Pole Emploi) until concurrence of 90% of previous salary (income conditions) • Training course of a maximum duration of 18 months leading to RNCP recognized certification • Employment Centre Competences • The mechanism of Professional Protection Contracts • Applies to redundancy procedures engaged since September 1st 2011 • Concerns all employees targeted by a lay-off procedure that totals at least four months of affiliation to unemployment insurance in the last 28 months for people under the age of 50, or the last 36 months for people over 50. • For employees who justify a year or more of seniority within an enterprise, the CSP allows them to benefit from the Professional Protection Allowance, whose rate is equal to 80% of previous brut monthly salary for 12 months. • The CSP can last for up to 12 months in order to enable employment durability, if necessary, through qualifying training courses or professional redeployment. programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  36. A proposed law, ‘Volet 3’, from the Law on Decentralization, foresees that The Region will be the lone public purchaser of training programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  37. Other Typologies of Specific Partners Departments – the Departmental Insertion Programme for Beneficiaries of Base Welfare • Specific Actions for the Acquisition of Knowledge (Competences defined in the data for the National Agency in the Fight Against Illiteracy) • Individualized, non-paid training action, no criteria for course time length • Association of Fund Management for the Insertion and Training of Handicapped Workers Short-termtraining action • Professional redeployment • Mobilitytowardsre-employment • Professional Immersion within an enterprise • Individualtraining actions • Common law • Specific actions in authorized centers: individual access to collective training courses programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  38. Financing from Joint Organisms and Authorized Collectors • Professional Career Protection for seasonal workers • -Initial and continued training of seasonal workers of Training Insurance Funds from Hotel Industry • -21 hour training modules prior to seasonal employment • Joint Funds for Career Protection • -Favor access to training for employment seekers and for under qualified employees programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  39. During Employment Contract type and duration of employment are conditions to access to job security programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  40. Permanent Contracts,Open-ended Periodic Contracts and Annualization of work time • Individual right to training • Individual leave of absence for training • Professional progress report • Leave of absence for review of qualifications • Leave of absence for the Validation of Acquired Professional Experience • Passport for training orientation • Professional interview (firm with fewer than 50 employees are obligated to conduct career review for all employees in the year that follows their 45th birthday • Training Plan formenterprise • -Adaptation to the position or to actions related to evolution and job security • -Development of skills and qualifications programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  41. After Employment Activation of security measures of professional career programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  42. Fixed term employment (less than 1 month) • -Does not open rights to unemployment insurance • -Access to training based on employment seekers common law • SPRF • PRDF • Authorized actions • Individualaccess to training programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  43. Fixed term employment (4-12 months) • Opens compensation rights to unemployment insurance • -the employment seeker must justify 122 days or 610 hours of work over the course of: • 28 months that precede end of contract (notice term) for workers under 50 • 36 months that precede end of contract (notice term) for workers over 50 • -the number of hours taken into consideration for the duration of required affiliation is a maximum of 260 hours per month • Allowancegranteddepends on : • -Duration of contributions • -Wage • -Age • Eligibility for common law measures + CIF CDD +CAR • -To access leave of absence for individual training, an employee must justify: • 24 months of employment during the last five years • Holder of fixed term contract for at least four months over the last 12 months • Begin training within the 12 months that follow the end of contract • -The reinforced Accompaniment Contract depends on: • Holder of fixed term or periodic contract for at least four months in the last 12 months • Must have acquired right to a minimum of six months compensation • Must have qualifications for level IV or infra IV programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  44. Fixed term contract (12 to 18 months) • Right to UnemploymentInsurance • Individual right to training is added to brackets eligible for short, fixed term contracts • Individual right to training: all employees with one year seniority in a firm have the right to a 20 hour training credit • accord of defined priorities can be taken into consideration as well as other training • can be put in place during or outside of work time programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  45. The Case of Interim Agencies • Interim Professional Insertion Contracts • Facilitate professional insertion for employment seekers • Alternation of training (theory and enterprise) of of missions • Duration between 210 and 420 continuous hours: • 70 hours of training in a centre +35 hours of work placement +105 hours of mission • Interim Professional DevelopmentContracts • Access to first level qualification, different or secondary qualification • For persons with no more than level V diploma • Persons who possess level IV without employment outlets in their field • Must have completed 450 mission hours in the last 12 months preceding start of contract • Training for a minimum duration of 175 hours and maximum of 450 hours programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

  46. Le Case of the Universal Service Employment Cheque • Self employed or freelance professionals have the right to two types of training: • Self launched training plan • Individual Right to Training (IRT) - DI • Training Plan • This self activated plan is directed toward perfection training that corresponds with the professional current freelance activity. Some restrictions to this plan apply. • Training hours are acquired upon hiring: superiority conditions are not required. • If possible, all training should take place within normal work hours but can eventually spill over into non-work time with approval of other co-employers. • Remuneration • Training hours that take place within normal work time are paid at normal hourly wage of CESU • Training hours outside of normal work time are paid at minimum hourly rate. • Carrier employer remunerates all hours and is later reimbursed by AGEFOS PME. programme Léonardo Da Vinci 2011-1-PL1-LEO04-19731 3 Projet 2012 : une ingénierie de formation pour accompagner les formes atypiques de contrat de travail

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