StalematePositions remain far apart as social partners clash over minimum wage reform

Roy Grotz
adapted for RTL Today
Labour Minister Marc Spautz's ambition to revive social dialogue has suffered a significant setback after trade unions left a Tuesday meeting on minimum wage adjustment, denouncing the negotiations as a failure.
© Envato Shiwork

Tensions appear to be mounting once again among social partners after trade unions walked out of a Tuesday meeting with the government on the adjustment of the minimum wage, describing the talks as a “failure”.

When former trade unionist Marc Spautz became Minister of Labour at the end of 2025, his stated goal was to relaunch social dialogue. However, that dialogue now lies in ruins, with positions on the calculation and quantitative increase of the minimum wage remaining far apart.

Minister Spautz is scheduled to brief the parliamentary economic and labour committees late Wednesday afternoon, two days before the Government Council meets on Friday. As the latter is unlikely to take a definitive decision, the timeline originally envisioned by Spautz is no longer tenable.

Speaking to the press, Spautz said he had hoped to settle the matter before Easter, noting that this would have been important for both trade unions and businesses in terms of planning ahead. He acknowledged that this had not come to pass, but stressed that this did not present a major issue, as there was still time to implement the EU directive. The minister expects the government to discuss the situation on Friday and return to the matter at a later date.

The trade union front, comprising the Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB), is demanding a structural increase of the minimum wage to 60% of the median salary, which would equate to a 12% rise. The unions have accused the government of manipulating the calculation and definition of the median wage in order to avoid a major increase.

Spautz denies any manipulation, instead framing the disagreement as a matter of differing approaches. He specifically named two: the first pertains to the “normal adjustment” based on the development of salaries, which he said equates to a 3.8% increase. The second is an internationally applied method based “purely on the wage itself,” which, he acknowledged, yields a different result. This difference, Spautz said, emerged during the Tuesday meeting, adding that there is indeed a divergence in opinion between the trade unions and the way the government had perceived the matter up to now. The minister reiterated that no final decision has yet been taken.

Meanwhile, the positions of the trade unions and employers remain diametrically opposed, and a compromise no longer appears possible. Spautz also expressed regret that tripartite meetings between the social partners were no longer feasible.

Since Wednesday, the calculations by the General Inspectorate of Social Security (IGSS) have been made public. They show that the government is proposing a minimum wage increase of €175, compared to the roughly €300 demanded by the trade unions.


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