After more than 11 hours of tense overnight talks, Luxembourg's government and unions reached a breakthrough deal early Thursday, preserving unions' exclusive right to negotiate collective agreements but leaving key labour disputes unresolved.
In a marathon negotiation meeting lasting from 3pm on Wednesday until after 2am on Thursday, Luxembourg's social dialogue, previously at a deadlock, saw significant developments in the early morning hours. Prime Minister Luc Frieden described the talks between the government, trade unions, and employers' representatives at the State Ministry as "difficult", "complex", yet also "constructive".
Earlier in the evening on Wednesday, it was reported via RTL that the government proposed maintaining the status quo regarding the law on collective agreements, sparking concern among unions who had previously marked the issue as a "red line". The government and employers sought to allow companies to negotiate working time arrangements directly with employee representatives through "company agreements", bypassing unions.
However, this proposal was firmly rejected by OGBL president Nora Back and LCGB president Patrick Dury, both empowered by the major demonstration that took place on 28 June.
By 2am, Frieden confirmed that the government would not revise the law on collective agreements, fully recognising the exclusive right of trade unions to negotiate both collective and company-level agreements. This marked a significant breakthrough in the talks but did not resolve all issues.
Negotiations on other contentious matters – including working time, Sunday work, shop opening hours, and pensions – are meanwhile set to continue. Discussions on working time will proceed in the Standing Committee on Employment and Labour (CPTE) over the coming months, and social partners were invited to resume talks at the State Ministry on Monday afternoon.
© Jeannot Ries
Despite the progress, union leaders remained cautious. Nora Back of the Luxembourg Trade Union Confederation (OGBL) called the outcome only the beginning, stating that they are "far from satisfied", while Patrick Dury of the Luxembourg Confederation of Christian Trade Unions (LCGB) described the session as his most difficult negotiation to date. Employers' association president Michel Reckinger emphasised that the government's statement on collective agreements did not necessarily reflect employers' views.
On pensions, the government introduced new proposals, including extending working lifetime, but details remained confidential.
PM Frieden expressed optimism about the rekindled social dialogue and the constructive contributions from all parties, acknowledging that the negotiations touched on issues beyond the original coalition agreement between the Christian Social People's Party (CSV) and Democratic Party (DP).
The Prime Minister is set to deliver a statement in the Chamber on Thursday morning at 10am. Prior to that, at 8am, OGBL president Nora Back will be a guest in RTL's newsroom.
