Redundancy plan at SES limits job losses, unions voice anger

On Wednesday, 11 December, Luxembourg's flagship aerospace company, SES, reached an agreement with the Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB) on a redundancy plan aimed at mitigating job losses.

While the agreement has reduced the number of threatened positions, 68 employees – primarily in engineering, IT, and administration – will still lose their jobs.

The unions noted that two-thirds of those affected are over the age of 40, a demographic particularly vulnerable in the job market. Following "two long weeks of tough negotiations," OGBL and LCGB expressed their frustration, calling for state intervention to support the affected workers. Proposed measures include early retirement adjustments, a training budget to facilitate re-employment opportunities, and an internal redeployment programme within SES.

Looking ahead, the unions warned of further potential job cuts, particularly in the wake of SES's acquisition of its US competitor IntelSat in 2024.

© OGBL/LCGB

The unions criticised SES's cost-cutting strategy, which seeks to reduce annual wage expenses by €4 million, contrasting this with the €11.5 million paid to senior management in 2023.

In their press release, the unions expressed anger not only at SES for its perceived lack of commitment to its workforce and the local economy but also at the Luxembourg government for its continued support of the company. "SES is once again letting its employees down," the unions stated, accusing the Betzdorf-based company of prioritising competitiveness at the expense of its staff.