French Government Formally Rejects Medef’s ‘CDI Jeunes’ Contract Proposal

Overview

• Jean-Pierre Farandou confirmed in the National Assembly that the proposal for a youth-specific open-ended contract will not be adopted, reinforcing Matignon’s earlier stance.
• Medef’s concept envisioned a contract that could be terminated without motive during the initial years, with severance increasing by seniority and, for a targeted group, pay below the minimum wage tied to training.
• Major unions including the CGT and student group Unef condemned the idea as a reprise of the 2006 CPE and warned of potential mass mobilization.
• The executive is prioritizing ongoing talks on changes to rupture conventionnelles, with a government target of roughly €400 million in savings and a deadline at the end of February.
• Medef characterizes its documents as discussion points, as employers and commentators remain divided over whether greater flexibility would boost hiring for a cohort facing roughly 19% youth unemployment and about 1.4 million NEETs.