Efforts are underway to revitalise the employment prospects of workers who have lost jobs amidst the bankruptcy of the Manuel Cardoso construction company.

Following the recent declaration of bankruptcy by the Manuel Cardoso Group, there are signs of gradual stabilisation within the construction industry.

"Some employees have already signed new contracts for September," confirms Jean-Luc de Matteis, central secretary for the construction sector at the Independent Luxembourg Trade Union Confederation (OGBL). Networking efforts are still underway, even amidst the sector-wide holiday period.

This positive development is a silver lining amid the displacement of approximately 110 jobs within the company. Especially as there is little chance of the state nationalising Manuel Cardoso.

The OGBL maintains an optimistic stance, predicting that a vast majority of the workforce will secure new positions in the near term. An undisclosed Luxembourg-based enterprise has, most notably, hired twenty former Manuel Cardoso employees.

The company's bankruptcy declaration on 1 August has also initiated processes for the resolution of its remaining assets. Cardoso's offices in Niedercorn have been put up for sale for €1.5 million.

RTL

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Tasked with raising funds to address Manuel Cardoso's outstanding liabilities, the appointed receiver is overseeing all settlement procedures. These obligations include accrued back-pay spanning June and July, as well as year-end bonuses for 2022. In a supportive measure, the National Employment Agency (ADEM) will extend a preliminary payment to mitigate the income loss encountered by former Cardoso employees.

Construction: A highly diverse industry

While obstacles persist for residential construction companies within a challenging market, the OGBL has affirmed to our colleagues at RTL Infos that the sector remains resilient. Jean-Luc de Matteis emphasises the sector's heterogeneous nature, stating that "some companies have temporary problems, but there are also a large number of newly created businesses every year."

Also worth noting: the substantial presence of companies engaged in public infrastructure, commercial buildings, and office construction. This sub-sector boasts a higher degree of stability, characterised by long-term projects and sustained momentum.

Meanwhile, trade unions are in the midst of negotiating collective agreements and, much to the dismay of the OGBL, have been for the past 18 months. Their representatives remain steadfast in their pursuit of enhanced compensation and improved labour conditions. According to de Matteis, "this agreement is not going to bankrupt the companies."