French court throws CNAM into confusion

The Paris, France, Adminsitrative Tribunal has annulled the nomination of the entire board of the National Sickness Insurance Fund (CNAM), in a  decision that puts the past four years of that body's administration  into question. The ruling means that the government has been forced to  appoint a provisional board, with virtually the same membership, to  ratify all decisions taken since the end of October 2004.

The dispute arose over a complaint lodged in 2005 by the French  Insurance Companies' Federation (FFSA) over the decision by the then  government to nominate a member of the UNSA labor union to the CNAM's  board. The political move was due to the UNSA's inability to be  represented on the CNAM to speak for salaried workers, because this was  restricted to other recognized labor and management organizations.

According to the financial daily newspaper Les Echos, the Tribunal's  decision in late March this year caught everyone by surprise, even more  so given that the ruling did not merely exclude the UNSA member, but  revoked the entire 35-member board's legitimacy.