Deputy PM vows to 'fight' for Luxair in upcoming negotiations

The National Institute of Statistics and Economic Studies (STATEC) recently announced that a new wage indexation is likely to be triggered in autumn. According to the agreement reached during the tripartite in March, this indexation would in theory have to be deferred to April 2024, since it was decided that wage indexations should be limited to one every 12 months. In April 2023, the wage indexation that was triggered in July 2022 will be paid out. However, in accordance with the March agreement, new tripartite negotiations are expected to start soon.

Speaking to our colleagues from RTL.lu, Deputy Prime Minister and Minister for Mobility François Bausch declared that "the index must remain, but employers should not be forced to pay out several indexations at once". According to Bausch, this is the challenge the government faces during the discussions with the social partners: On the one hand, guaranteeing inflation compensation and, on the other hand, "dealing with it" over a period of one or one and a half years.

Several "options" present themselves, Bausch explained. One of them is to pay out the wage indexation from July, which was deferred to April 2023, at the time when the next indexation will be triggered in autumn or winter 2022. The wage indexation of autumn/winter 2022 could then be paid out in April 2023. Alternatively, the Minister proposes to continue deferring wage indexations but over a shorter period of time than currently provided for by the tripartite law: In this event, the wage indexation from July would be paid out in April 2023 as planned, but the wage indexation of autumn/winter 2022 would not be deferred to April 2024 but paid out a few months after the indexation of April 2023.

The risk brought about by the higher-than-expected inflation is that due to the tripartite law of March 2022, several wage indexations would have to be paid out after 2023. In any case, it seems clear that the current tripartite law will have to be adapted.

An 'energy cheque' instead of a fuel discount?

Regarding the fuel discount, Bausch reiterated his criticism that the measure is "socially unjust" since it benefits "mainly those who own big cars". Instead, the Minister personally advocates for the introduction of an "energy cheque" that would – similarly to the tax credits – reduce the financial burden according to a person's income.

When our colleagues from RTL.lu pointed out to the Minister after the interview that the current division of salaries into five categories does not account for all kinds of revenues, Bausch agreed that STATEC would have to recalculate the division. STATEC Director Serge Allegrezza confirmed in an interview with RTL that people with low salaries but high incomes from, for instance, rent payments, currently receive higher tax credits than people who earn medium salaries but do not have any other types of revenues.

Minister demands end of short-time work at Luxair

In relation to the upcoming tripartite negotiations in the aviation sector, which Bausch has convened for 26 September, the Minister hinted that part of the discussions will revolve around ending short-time work at Luxair. The government originally granted the airline permission to make use of short-time work due to the Covid-19 pandemic. Trade unions recently sounded the alarm because of excessive workloads at Luxair. On the request of the Christian Social People's Party (CSV), the responsible parliamentary committee will also hold a meeting on the situation.

François Bausch assured that he will "fight" for Luxair, stressing that the company "has a future," even if the whole industry is facing major changes.