Index, taxes, salaries vs capital – the class struggle was evident during the roundtable discussion hosted by our colleagues from RTL Radio on Saturday afternoon. The heads of the OGBL and the UEL in particular butted heads on several occasions. OGBL President Nora Back stated that it is “a lie” to say that the postponement of a potential wage indexation in August will be overcompensated for through tax credits. In response, UEL President Michel Reckinger angrily told Back to “stop telling people that they are lying”. Back and Reckinger continued reproaching each other during the second half of the show and both accused the other party of being “nasty”.
Back justified the OGBL’s refusal to sign the tripartite agreement by pointing out that discussions only focussed on the index. Reckinger argued that companies have been heavily impacted by the increased energy prices and inflation. The UEL President pointed out that for companies, costs are comprised of material and salaries. If salaries were now also to shoot through the roof, Reckinger said, then the majority of companies would struggle to survive. Back criticised that during the tripartite negotiations, there was no clear distinction being made between companies that are actually struggling and those making profits. In response, Reckinger defended the profits of the banks by stating that they are the “dairy cow” financing the welfare state. LCGB President Patrick Dury stated that he agreed with this analysis. Dury said that his trade union achieved its goal during the tripartite negotiations as the index itself was not questioned. The wage indexation likely to be triggered in August will “only be postponed” and this is the first time that there will be tax credits as compensation measures.
The parties could also not come to an agreement when it came to the issue of inequality, with Reckinger arguing that the index is aggravating the problem. According to Back, inequality can only be mitigated through raising low salaries and implementing the right tax policies. Patrick Dury also defended the index as the tool that guarantees social peace. However, the LCGB President also acknowledged that further discussions are necessary. The LCGB President concluded the roundtable discussion by stressing that “we are all in the same boat in Luxembourg”.
