Asked about the prospect of two simultaneous index cuts, Kuhn expressed disbelief that it can be implemented. What the sector needs is predictability, he explained during the radio interview on Friday morning. At the moment, it is difficult to correctly predict what the next day will bring, which in return makes it difficult to stabilise prices.
For a company employing 250 people, an index cut is comparable to the effect of gaining six to seven employees at the same time, said Kuhn. Furthermore, postponing a cut is not the same as cancelling it, he explained, and people in need already receive “substantial” support from elsewhere.
Kuhn also noted that business margins have already been reduced to a minimum and that it should still be ensured that they can thrive and invest.
Next week, the National Institute of Statistics and Economic Studies (STATEC) will publish its latest inflation forecast. Kuhn refrained from speculating as to which measures can or should be proposed, a task he will leave up to the employers’ representatives present at the negotiations.
The president of the Federation of Luxembourgish Construction Companies and of Civil Engineering also addressed staff shortages in the sector. Over the next five years, 30% of personnel are expected to retire, which puts additional pressure on the sector, explained Kuhn.
He further spoke about the importance of the collective leave period, which allows people in the sector to get a well-deserved break, and which benefits small businesses in particular.
The final point that Kuhn addressed during the interview was the slow pace of housing construction here in Luxembourg, which he blamed on overly complex administrative procedures.
