Diverging demands over pensions, shop opening hours, and Sunday work took centre stage as the government mediated between unions and employers in late-night talks Monday, with all sides acknowledging incremental progress ahead of a potentially decisive September meeting.

At 10pm on Monday evening, after eight hours of talks between the government, employer representatives, and trade unions, Prime Minister Luc Frieden emerged from the Ministry of State and announced that progress had been achieved. "We can go on summer holiday in social peace", Frieden stated.

The Prime Minister described the discussions as taking place in a "constructive spirit", though he acknowledged the difficulty of reconciling the differing positions of the social partners. According to Frieden, the latest round of negotiations focused on building bridges, seeking compromises, and narrowing gaps between the parties.

The talks centred on three key issues previously outlined: pension reform, shop opening hours, and Sunday work in the retail sector.

While no final agreement has yet been reached, the Prime Minister struck an optimistic note, remarking that "the glass is rather half-full than half-empty".

Following the marathon negotiations, Deputy Prime Minister and Foreign Affairs Minister Xavier Bettel – who had postponed commitments in Brussels to attend the discussions before returning to the Belgian capital – emphasised the government's role as a mediator between employer groups and trade unions, noting that both sides demonstrated a degree of willingness to compromise.

Trade union representatives struck a positive tone after the meeting. Nora Back, president of the Independent Luxembourg Trade Union Confederation (OGBL), observed that Monday's discussions differed markedly from last Wednesday's tense exchanges. Patrick Dury, president of the Luxembourg Confederation of Christian Trade Unions (LCGB), shared this sentiment, while Romain Wolff, president of the General Confederation of Civil Servants (CGFP), welcomed the revival of effective social dialogue in line with union expectations.

Meanwhile, employer representatives reiterated their push for a comprehensive package deal. Michel Reckinger, president of the Luxembourg Employers' Association (UEL), stated that employers are also seeking a "balanced agreement" on pension reforms. According to Reckinger, Monday's discussions built on the progress made during last Wednesday's negotiations.

On pensions, a consensus appeared to be emerging that all stakeholders – current pensioners, future workers, and employers – would have to contribute to resolve the issues at hand. However, some newly introduced proposals will require detailed financial analysis before further steps can be taken.

Prime Minister Luc Frieden confirmed that the next round of talks is scheduled for 3 September, expressing hope that the government and social partners will finalise an agreement at that time.

All three parties involved declined to disclose specifics about Monday's discussions, citing the need to maintain the integrity of the social dialogue and the ongoing negotiation process.

Reactions after the talks (in Luxembourgish)

"Konstruktiv Gespréicher" mat de Sozialpartner
Et wier e konstruktive Geescht wärend den Diskussioune gewiescht an déi 3 grouss Sujete goufen ugeschnidden, sou wéi et virgesi war, sou de Premier Luc Frieden.