Min A-kasse's chairman Finn Johnsen in a debate post: Why the unemployment benefit system must be strengthened now

The unemployment benefit rate lags far behind general wage and price developments. Security is at stake when unemployment strikes, because our unemployed members risk facing a significant drop in income. FH is now on the scene with a proposal to politicians for a more modern unemployment benefit system and an increase in rates. Min A-kasse fully supports the proposal and publishes this opinion piece in the online newspaper A4.

The Danish unemployment benefit system is based on the idea of a solidarity-based insurance product where the community secures the individual unemployment fund member financially in case of unemployment. This has been the cornerstone of the insurance model since the unemployment insurance funds were recognized by the state back in 1907. Unemployed people were guaranteed security and dignity, and the Danish labor market was lifted to new, modern heights based on security and flexibility. A model that today has gained international attention as the unique Danish "flexicurity model".

But our otherwise well-respected Danish model is about to be well and truly destroyed. The financial security in the form of an unemployment benefit rate of the "maximum" 19,322 is based on a 20-year-old calculation model. And solidarity and community are threatened by the proliferation of privately taken out wage insurance - for those who can afford this significantly more expensive insurance solution.

Therefore, we at Min A-kasse welcome FH's proposal for an improvement of the unemployment benefit system and a higher unemployment benefit rate. We are united in our support for FH throughout our broad base, which consists of 15 very different unions. Our 90,000 members cover a wide range of disciplines, job situations, working conditions and pay rates. We cover both the employee and the self-employed, members from industries that have made it through Corona unscathed, but to a large extent also members from industries that have felt the impact of the Corona crisis, such as our many security staff at airports, who experienced a drastic drop in income after being laid off.

FH's proposal gives our unemployed members a much-needed boost in the unemployment benefit rate of up to DKK 4000. This is the level the benefit would naturally be at if unemployment benefits had not been neglected since the 1990s. FH is also agitating for unemployment benefit rates to follow the general wage and price development in the future. This is, of course, common sense.

But the proposal is not just about dollars and cents. It is also an expression of due diligence if we are to preserve our unique Danish flexicurity model and safeguard confidence in a system that supports us if unemployment strikes. We believe that the more than 2 million Danes who are members of an unemployment insurance fund and who faithfully pay their membership fees - month after month and year after year - are entitled to that trust!

We need to get our security and dignity back. Because it's hard to lose your job. The Corona crisis has really cemented this. Members who have worked for the same company for years are suddenly made redundant. Everyday life is turned upside down, housekeeping and consumption become more restricted, and at the same time, energy and motivation must be mobilized for a job search - perhaps even in a completely new industry.

There is no doubt that unemployed people want to get back to work. We certainly see this in Min A-kasse, where we have members who already contact us during their notice period for advice on how to move on. And an extra DKK 4,000 per month will not change the eagerness to re-enter the labor market. On the other hand, it will make it even more attractive to be a member of an unemployment insurance fund, which not only provides financial security, but also support and guidance to get back to work.

Stopping the erosion of the unemployment benefit system will not only benefit the unemployment fund member. It will also increase flexibility and dynamism in the labor market, benefiting employees, employers and politicians alike. For the benefit of the entire Danish society and our Danish welfare state. So thank you to FH for a constructive and long-awaited proposal. It will be a yes from us.