In conversation with RTL Radio on Wednesday, Labour Minister Georges Mischo defended the government's approach ahead of next week's third round of social dialogue, stressing coalition unity, openness to compromise on Sunday work, pensions, and working time, while highlighting plans to support workers through AI-driven changes and rejecting claims of political favouritism in his ministry.
Labour Minister Georges Mischo insisted that the CSV-DP coalition is united and clear on its direction as it heads into the third round of social dialogue next week.
Reflecting on recent setbacks, including the government’s failed bid to weaken collective agreements, Mischo said he did not see this as a defeat. He argued that governments often test ideas before retreating, stressing that the priority now was to look forward rather than linger on past disputes.
The organisation of working time will now be debated in the Permanent Committee of Work and Employment (CPTE), a forum where employers and unions have in recent years struggled to agree. Mischo expressed cautious optimism that some common ground could be found: while not every demand would be met, he believed consensus on at least a number of issues was realistic. He added that this would require several sessions, though he saw no "urgent pressure" to conclude everything at once.
A give-and-take approach
On Sunday trading, Mischo explained that while a draft law to extend permitted opening hours in the retail sector from four to eight had been tabled, the government had since shifted course.
The issue will now be settled through collective agreements between employers and unions, with an exemption for very small businesses, he said. Mischo added that he was confident a compromise could be found on the definition of such enterprises, with unions pushing for a limit of fewer than 15 employees and employers preferring a threshold of 49.
Turning to pensions, Mischo rejected the suggestion that reforms risked being watered down into a "mini-reform". He noted that the reality was straightforward: young people now enter the workforce later, people live longer, and the labour market already faces shortages in both qualified and unqualified staff. At some point, he argued, the numbers will simply no longer add up. Next week's talks would need to balance these pressures, he stated.
Impact of AI on working population
The conversation also touched on artificial intelligence and the labour market, against the backdrop of job cuts at Byborg, a subsidiary of Docler Holding. Mischo downplayed fears that AI would eliminate vast numbers of jobs, citing a study from Scandinavian consulting firm Implement Consulting Group that suggests that only 6% of roles in Luxembourg could be replaced entirely, while 72% would be transformed.
The government, he said, has already passed legislation on "skills plans" to help companies retrain staff while still in work. He acknowledged that no worker could be shifted from one profession to another "one-to-one", but announced that from 2026 the national employment agency ADEM would roll out AI-focused training modules to support reskilling.
Political appointees
On political appointees in his ministry, Mischo pushed back against accusations of favouritism after investigative journalism site reporter.lu pointed to unusually high staff turnover there.
He emphasised that he values competence and loyalty above party affiliation, pointing out that senior staff in his cabinet and administration are members of the Luxembourg Socialist Workers' Party (LSAP), the party that held the ministry for a decade before him. He insisted that no one was hired or dismissed based on their party card, suggesting that people who wish to leave should not be held back.
