While the government’s decision to authorise earthmoving, demolition, and construction firms to implement short-time working for up to 20% of their workforce between 1 February and 31 July offers some relief, the sector primarily seeks measures to stimulate activity.
With approximately 12,000 individuals employed in the affected sectors, this arrangement could potentially affect around 2,400 workers.
Max Didier, managing director of CDCL construction company and FEDIL director, advocates for tax initiatives to alleviate burdens on individuals. He highlights the need for VAT adjustments, reintroduction of accelerated depreciation, or even exemption from registration fees on built-up properties to incentivise construction projects.
Didier refutes claims that construction companies have profited excessively over the years and are now relying on state assistance. He emphasises the significant contributions construction projects make to state revenues through VAT, income taxes, and social security contributions, noting that many contractors reinvest in equipment, thus benefiting the economy.
Despite impending layoffs, companies anticipate the ongoing need for skilled workers. Miguel Santos, CDCL’s workforce head, asserts the enduring demand for construction labour in Luxembourg, citing favourable working conditions and job stability: “At the moment, we’re in the middle of a crisis, but it’s temporary.”
As the collective holiday for the construction industry nears its end, the prospect of continued public assistance remains uncertain. However, Didier maintains an optimistic outlook for the industry’s future.
