Employers and trade unions have agreed to a new deal affecting 20,000 workers, securing an extra day off and a 30-cent increase in starting salaries for lower-wage employees.
Last week, employers and trade unions reached a new collective agreement for the construction sector. The deal, which affects around 20,000 workers, includes an additional day off and a 30-cent increase in starting salaries for those on lower wages.
Jean-Luc de Matteis of the Independent Luxembourg Trade Union Confederation (OGBL) disagrees with the idea that workers have "settled for too little." The negotiations took place in a challenging climate, marked by declining activity in the construction sector. While employers pushed for a two-year agreement, the final deal was restricted to just one year.
The union representative is also optimistic that improvements for employees could be negotiated next autumn, provided interest rates continue to fall and other measures take effect, boosting demand for construction and leading to more building activity.
Marc Giorgetti, president of the Groupement des Entrepreneurs, offers a far more cautious outlook. He notes that many workers remain unemployed, construction sites are largely idle, and demand for cranes in residential projects is weak. He predicts that a recovery is unlikely in the near future, with project stocks being sold off slowly. Giorgetti also points to specific projects where construction companies have incurred losses and foresees additional bankruptcies within the sector.
De Matteis from OGBL reports no knowledge of additional bankruptcies in the sector, emphasising that all employees are currently working. Looking ahead to the next collective agreement, he highlights the need for good working conditions to attract new talent as construction activity picks up and to replace retiring workers.
In contrast, Giorgetti warns that the current pace of 1,000 new homes per year falls significantly short of the pre-crisis level, with at least 3,500 homes needed annually to meet demand.
