Some minimum social benefits given pre-Christmas boost

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In December 1998, responding to the actions carried out by groups representing unemployed people, Prime Minister Lionel Jospin announced an increase in certain minimum social benefits. This 3% rise was backdated to 1 January 1998, making it, in the words of the Prime Minister, into "a kind of bonus".

In early December 1998, associations representing unemployed people, particularly CGT-Chômeurs and Act Against Unemployment! (Agir contre le Chômage!, AC!) mobilised again, demanding, as they had done a year previously (FR9801189F), a FRF 3,000 Christmas bonus, the extension of the guaranteed minimum income (Revenu Minimum d'Insertion, RMI) to those aged under 25, an increase in minimum social security benefits and higher levels of unemployment benefit. The beginning of December was marked by a number of actions, such as occupations of the offices of ASSEDIC s (the associations responsible for paying unemployment benefit) and of the EDF electricity board (to demand an end to the practice of cutting off electricity to the poorest households), and demonstrations, some of which were attended by several thousands of people, in Marseille and other towns in France on 3 December.

On 15 December, Prime Minister Lionel Jospin announced a 3% increase in three minimum benefits currently paid to 1.5 million people:

• the RMI, which stands at FRF 2,429 per month;

• the "specific solidarity benefit" (Allocation de Solidarité Spécifique, ASS), aimed at long-term unemployed people no longer eligible for unemployment benefits, which is worth FRF 2,433 per month; and

• the integration benefit (Allocation d'insertion, AI), aimed at categories of unemployed people ineligible for unemployment benefits (such as recently released prisoners and asylum-seekers), which is worth FRF 1,714 per month.

This increase announced by the Prime Minister - worth FRF 2.5 billion - covers a two-year period and is backdated to 1 January 1998 ("a kind of bonus", according to Mr Jospin), effective from 1 January 1999. The Prime Minister feels that unemployed people too "should enjoy their share of economic growth". The backdated segment of the RMI was to be paid before 25 December 1997, and that of the ASS and the AI on 26 or 27 December, stated the Minister for Employment and Solidarity, Martine Aubry. This boost adds an annual FRF 875 (approximately FRF 72 per month) to the RMI and the ASS and FRF 617 per year (about FRF 51 per month) to the AI. For a couple with four children, receiving the RMI, this will mean an increase of FRF 2,536 per year (FRF 211 per month).

The ASS had already been raised by 8% in 1998, after unemployed people had mobilised over the winter of 1997-8 (FR9802199N). The government had also decided to index-link the ASS and the AI to inflation. The RMI had been increased by 1.1% on 1 January 1998, and the draft Budget for 1999 provided for a 1.2% rise on 1 January 1999.

In Marseille, where the actions of the unemployed groups attracted the greatest support, unemployed people received FRF 178 million worth of emergency aid, provided by the Bouches-du-Rhône département, the regional government and the state, FRF 69 million of which was put aside for a "Christmas bonus".

This "effort" made by the state for unemployed people was "freely made, without excessive pressure being exerted", stated the Prime Minister. Claire Villiers of AC! responded by saying that it was "a first small response", and attributing the government's response to "the actions carried out by unemployed people". The measures were however, deemed "obviously very, very inadequate", and she added that they "did not meet the situation of dire need" in which the jobless find themselves.

On the trade union side, Charles Hoareau, leader of CGT-Chômeurs in Marseille, felt that the government could "do better". According to the CGT, the government's move was an "encouragement to carry out more actions". However, the CFDT deemed that this a "significant" rise, but asked that the increase in minimum benefits "become the subject of a compulsory annual meeting between the social partners". Marc Blondel, CGT-FO general secretary, felt that the measure "partially satisfied a demand", but called for "more steps to be taken". Finally, the CFTC"warmly welcomed the measure", but strongly criticised the overall package for its "lack of real consistency".