The Groupement des Entrepeneurs represents the construction sector in Luxembourg.
Speaking to RTL Radio, Faber argued that the government’s move would not only create affordable housing, but would also support struggling construction companies. However, for Faber, the planned purchase of 114 apartments for 69 million euros is insufficient, especially considering the government has pledged investments of €500 million to support the sector.
The bankruptcy of a big company like Cardoso clearly shows that the construction sector is not doing well. Cardoso’s employees were able to find work with other companies, but should others follow the same fate, Luxembourg could lose these workers. According to Faber the country needs these employees, as many local construction workers are on the older side and will soon leave for retirement.
The industry is making a real effort to make construction more attractive for younger people. Many training courses are being offered, and a new collective labour agreement is being worked on. As negotiations are still underway, however, Mr. Faber could not give any further information.
For companies to get more stability, Faber argued that the wage indexation system should be re-worked to allow only one salary increase per year. He also welcomed the new bill on affordable living, which will allow construction companies to build affordable housing for their workers. This could also attract new people into the industry.
The secretary of the Groupement des Entrepreneurs would like to see reforms to allow construction projects to get off the ground quicker. He also expressed support for a new measure allowing first-time buyers to have their interest rates capped. This is already done in Germany, and could be introduced in the Grand Duchy with the help of a fund that would pay the remaining interest rates.
