Negotiations between the government and Luxembourg's social partners over a new tripartite agreement continued almost up to the last moment, with final wording still being debated just hours before the official signature on Monday evening, as confirmed by Patrick Dury, President of the Luxembourg Confederation of Christian Trade Unions (LCGB). Despite the last-minute discussions, the agreement was signed later that same day.
The package comprises around 20 measures aimed at curbing inflation and providing support to both individuals and businesses during these uncertain times.
By Thursday evening, the government and social partners had already reached consensus on the broad outlines of the new measures. However, the weekend was spent translating these principles into a formal agreement.
Patrick Dury of the LCGB stressed the significance of the deal, highlighting that the process had given new value to social dialogue in Luxembourg. Nora Back, President of the Independent Luxembourg Trade Union Confederation (OGBL), echoed this sentiment, emphasising that the negotiations had reinforced the importance of constructive dialogue between the different stakeholders.
"I must say I am very pleased that our bodies have given unanimous approval. We had an enormous amount of work, which began on 8 October 2024. We are now in a different chapter, where we are seeking agreement through the tripartite process."Patrick Dury, LCGB president
Nora Back, president of OGBL, also sees a revalued social dialogue:
"Once the discussion on the minimum wage was unblocked in Senningen, things moved quickly. What still needed to be clarified was how the terms of reference of the new bodies would be formulated. We have created three major new bodies. We welcome that, it revalues social dialogue and the role of the trade unions."Nora Back, OGBL president
Looking ahead, the agreement foresees the creation of a new housing committee and discussions around a specialised unit focused on monitoring the labour market, referred to as the 'Cellule de reclassement' . In addition, a new tripartite monitoring committee will be set up to review the implementation of decisions every quarter, with the possibility of introducing new measures if required.
Prime Minister Luc Frieden cautioned, however, that this should not be interpreted as a move towards a permanent tripartite structure: "I do not think it was any different with previous agreements; we need to see how these measures are implemented. Monitoring means we have agreed on a range of measures and will now watch how they work in practice.”
The legislative process to turn the agreement into law will now begin.
Michel Reckinger, President of the Luxembourg Employers’ Association (UEL), described the agreement as absolutely essential, especially for businesses "to show we could act, and we have done so here".
Christian Hahn, President of the Chamber of Agriculture, expressed satisfaction that the agricultural sector was once again included in tripartite negotiations after a 14-year absence, and welcomed the support the sector is set to receive under the agreement.
"To be precise, it applies to fertiliser, which saw an increase of over 50%, but also to the energy support measures, since we also consume energy. Those measures for people are important for our sector too. If they have more purchasing power, they can buy more of our regional products."Christian Hahn, President of the Chamber of Agriculture
Although the agreement places significant emphasis on energy transition, the government will also provide targeted assistance to all those who need to refuel or heat their homes, regardless of the energy source.
Romain Wolff, President of the General Confederation of the Civil Service (CGFP), acknowledged this approach, noting that in the north of the country, many households still use heating fuel, who, in his view, "also deserve support”.
The agreement will be presented to the Chamber of Deputies on Tuesday, followed by a press conference in the afternoon, during which several ministers will explain the measures in detail.
