OGBL president criticises deterioration of social dialogue in Luxembourg

Nora Back criticised the current state of social dialogue, describing it as being "trampled on," while pointing to CSV Minister of Labour, Georges Mischo, as a key culprit. Back expressed her frustration at Mischo's move to question the exclusivity of trade unions in collective bargaining negotiations and his refusal to participate in the debate. A direct exchange could have been beneficial, she lamented.

Tensions within the CSV

When asked whether the government favours businesses over workers, Marc Spautz (CSV parliamentary leader) refrained from giving a direct answer. However, he did acknowledge a noticeable difference in the government's approach to employers versus employees, citing the Prime Minister's attendance at the New Year's reception of the Federation of Industrialists (FEDIL) but not at the reception of the Chamber of Employees.

Nonetheless, Spautz underlined that Luc Frieden's initiative to establish a so-called 'social dialogue table' alongside Labour Minister Mischo, Social Minister Martine Deprez, and SME Minister Lex Delles, demonstrates a certain intent to foster dialogue.

When asked whether the entire CSV faction agrees on the issue of collective agreements, Spautz acknowledged that the party includes both business-oriented and socially-oriented members, naturally leading to internal debates.

Concrete results needed in collective bargaining

The current dispute began with the Permanent Committee for Labour and Employment (CPTE), where collective agreements were to be discussed. An EU directive mandates that 80% of employees should be covered by collective agreements; however, in Luxembourg, only about 50% are. During CPTE discussions, Minister Mischo openly questioned unions' exclusive rights in collective bargaining, a stance that Back deems unacceptable. She argued that the minister's position undermines Luxembourg's entire social model.

Back in October, the Green Party had presented a parliamentary motion to guarantee this right to trade unions, but the majority voted against it. Last week, the same motion was reintroduced and passed with the support of the CSV-DP majority. Spautz explained this shift by emphasising that governance "is not all about motions," quoting Emile Krieps. He did however admit that approving the motion earlier could have alleviated some tensions.

What will collective agreements look like in the future?

Prime Minister Frieden sparked further concerns by suggesting that certain details of collective agreements could be addressed at the company level. "All alarm bells went off," said Back, who warned against such an approach. She argued that collective agreements must protect working conditions and wages, warning against stripping them of their substance.

Spautz interpreted the Prime Minister’s statement differently, describing it as an attempt to create a framework for collective agreements while allowing businesses to adapt specific elements in consultation with employee representatives. A former unionist himself, Spautz stressed that wages and working hours remain fundamental components of any collective agreement.

Tensions over new commerce laws

50,000 people work in the commercial sector, and their quality of life is being significantly impacted by the two new legislative proposals from Ministers Mischo and Delles, criticised Back. She noted that such changes do not only have significant consequences on people's private lives but also on community, sports, and cultural activities.

Given that the proposals were unilateral and ultraliberal decisions by the Minister of the Economy and bypassed social dialogue, the trade unions are opposed to the proposals. Especially considering that Luxembourg already has the most liberal opening hours in the Greater Region.

Spautz refrained from commenting on the details of the two draft laws but underlined the need for society to reflect on which changes it is willing to accept. He agreed with Back that such discussions have to be conducted with social partners, as has been the norm in Luxembourg for the past 50 years.

Only if the social partners cannot reach an agreement does it fall to policymakers to make the decision. But such discussions have to take place first, he concluded.

Unions await clearer commitment from government

Back also took the opportunity to comment on the government's mixed signals which further complicate already tense discussions. She noted that the unions cannot rely on parliamentary motions alone to guarantee outcomes.

Indeed, the unions are now awaiting the promised 'social table' to secure clear commitments, although a date for this meeting has yet to be set. Until then, Back argues, no new legislation should be passed on matters like Sunday work or opening hours.

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