As tensions rise between Luxembourg's government and trade unions, former EU Commissioner Nicolas Schmit has cautioned against moves that could violate European law.
Former European Commissioner for Jobs and Social Rights, Nicolas Schmit, addressed the ongoing debate about trade union roles in Luxembourg's collective agreement negotiations during an interview with our colleagues from RTL Radio on Wednesday.
Schmit emphasised that the European directive on collective agreements "clearly states that trade unions have the exclusive right to negotiate collective agreements." He described any challenge to this principle as "a provocation" and warned that undermining it would constitute "a clear violation of European law."
The debate has been marked by recent tensions between Luxembourg's Minister of Labour, Georges Mischo, and the country's trade unions. The friction stemmed from a meeting discussing the government's action plan to implement the EU directive on minimum wages and collective agreements. During the meeting, Minister Mischo refrained from guaranteeing the unions' exclusive negotiating rights.
In response, Prime Minister Luc Frieden later clarified that the government had "no intention" of revoking these rights. However, Frieden also questioned whether "every detail" must be addressed within collective agreements.
Schmit expressed concerns over potential changes, warning that excluding matters such as working hours from collective agreements would "clearly weaken trade unions and employees." He underscored the directive's "regression ban," which prohibits implementing the directive in a way that reduces employee rights or protections.
The European directive in question aims for 80% of employees in each EU Member State to be covered by a collective agreement. In Luxembourg, the current figure ranges between 50% and 60%, placing the country in the middle tier at the European level. To improve this rate, Schmit suggested incentivising companies to sign more collective agreements. One potential measure, he proposed, is giving preference to companies with collective agreements in public tenders. He also advocated for modernising collective agreements and increasing their sectoral scope, calling on the government to take action in this regard.
Adjustments needed for social minimum wage
On the issue of the minimum wage, Schmit highlighted the need to reduce the gap between it and general wage trends gradually. While Luxembourg boasts the EU's highest minimum wage–€2,570 per month for unskilled workers and €3,085 for skilled workers–it fares less well when compared to the European Commission's references for median and average wages.
To align with the European directive on minimum wages, Schmit argued that Luxembourg should pursue adjustments. Schmit had initiated the directive during his tenure as European Commissioner for Jobs and Social Rights.
No further political ambitions
At 71, Nicolas Schmit no longer harbours ambitions for political office. Reflecting on his exclusion from President Ursula von der Leyen's new European Commission despite leading the European Social-Democrats' list in the last elections, he stated that it was time for "shorter days." Nevertheless, Schmit remains engaged in labour and social affairs, drawing on his extensive expertise.
Schmit expressed disappointment over the underrepresentation of European Social-Democrats in the Commission, despite their solid electoral performance. He also criticised the appointment of Raffaele Fitto, an Italian post-fascist politician, as one of the Commission's vice-presidents. While acknowledging that "the Italians appoint the commissioner they want," Schmit questioned whether Fitto should have also been elevated to vice-president, attributing the decision to Ursula von der Leyen.
Watch the full interview in Luxembourgish:
