
Luxembourg's multisectoral business federation FEDIL, which represents more than 750 companies, addressed its role in the recent social talks on Friday as director René Winkin spoke on RTL Radio.
Trade unions say employer representatives put forward "unacceptable" proposals for longer working hours, fewer breaks, and reduced annual leave during the third round of tripartite talks on 3 September. René Winkin, director of FEDIL, the "Voice of Luxembourg's Industry", countered that the claims had been "misinterpreted or even exaggerated".
Despite the breakdown, Winkin hopes for a new opportunity to discuss employers' proposals with the trade unions. The industry representative says he can assure people that there would be limited risk of employers abusing such measures. "If we open a door, we have to be sure we can close it once again".
He brought up one example, in which the current law dictates just one unpaid break per day. However, there are people who want to start work early at home, so they can travel to the office later in the day, missing rush hour to save time.
According to the law, their commute would represent a break which would be paid, and therefore their lunch break, or a later afternoon break, would not be paid. Winkin says he is sure they could come to an agreement with the unions to ensure there are no unpaid breaks.
"Shame that the collective agreement has fallen into disrepair"
Winkin, who participated in the third round of talks on 3 September, believes it was a shame that the collective agreement, a bargaining tool, had fallen by the wayside. "It is used in political discussions as a restriction or price to pay in negotiations," he says.
One example he gave was Sunday work in small shops: "For an employee to work eight hours on a Sunday, a collective agreement is required. But the way the debate has unfolded has pushed the agreement into a framework where it does not belong, even though it is widely and effectively used by larger companies and sectors."
Simplifying procedures and taking advantage of internal markets
Europe's economy is currently under pressure, most notably due to Donald Trump's US tariffs, but Winkin says it must be put into perspective, and that the EU is being treated better than other competitors.
However, he adds that he believes the EU is not yet fully exploiting the potential of its internal market. Quoting the IMF, he says taxes of 45% on goods and 100% on services are being paid as the internal market is not fully free, due to standards growing at "a breakneck pace."
Winkin welcomes the EU Commission's plans to reduce this pace, as well as a second package for the digital age.
Although EU environment ministers have agreed a minimal compromise on the reduction of greenhouse gases, there is no reason for the industry to breathe a sigh of relief. Winkin says planning certainty is important, and it would be helpful if climate targets could reach an international consensus, so no one economy is forced to do more than another.