Increasing the minimum wage is both a moral and an economic obligation, according to The Left (Déi Lénk), which used a press conference on Thursday morning to criticise the government’s failure to deliver a substantial raise.
The opposition party described the government’s decision as short-sighted. Party spokeswoman Carole Thoma argued that Labour Minister Marc Spautz is no different from his predecessor, Georges Mischo. Despite promises made by the CSV minister when he took office, Thoma said he is effectively continuing the government’s previous policy.
“They practise cronyism in favour of employers who constantly complain about a labour shortage – a workforce that they are nevertheless unwilling to pay”, she criticised.
For The Left, it is unacceptable for people in employment to live in poverty. Party officials also pointed out that Luxembourg depends economically on people coming to work there, making the minimum wage a question of competitiveness.
The party rejected the argument that businesses could not afford a substantial increase, noting that sectors where the minimum wage applies – such as construction, cleaning, retail, and hospitality – cannot be offshored. The party also noted that there are chains making significant profits within these sectors.
To address the difficulties faced by small businesses, Baum proposed alternative solutions. He observed that when listening to hospitality representatives, one of their main problems in recent times has been rent prices – specifically, the amounts that those renting commercial premises have to pay.
If the goal is to help the sector, Baum argued, the state should consider capping commercial rents. “This would help the hospitality sector much more than taking purchasing power away from their potential customers by keeping wages too low”, he said.
The Left also dismissed relying on social benefits instead of increasing the minimum wage, arguing that such benefits do not benefit cross-border workers. The party finds it unacceptable that more and more people require public support while being employed.
Finally, the party criticised the Luxembourg Socialist Workers’ Party (LSAP) and The Greens (Déi Gréng). While The Left welcomed that the two other left-leaning opposition parties are now also calling for a higher minimum wage, it expressed regret that both groups had opposed such increases when they were in power, sometimes using the same arguments the CSV puts forward today.
