This ‘industry’ tripartite meeting has been convened following the planned or announced loss of around 350 jobs at Husky Technologies, Dupont (now Celanese) Teijin Films, and John Zink. The meeting is set to focus on the short-term development of industrial companies that are cutting jobs and on the longer-term industrial policy.
The expectations of trade unions and employers, as well as those of the Labour and Economy Ministers seem to be the same, but the devil is in the details.
Trade unions demand that job retention plans become the norm. Once highly specialised employees leave the country, it is difficult to find staff of this level when they are needed. According to Patrick Dury, President of the Luxembourg Confederation of Christian Trade Unions (LCGB), the aim is to ensure that these workers do not become unemployed, possibly by means of a reclassification cell.
Patrick Freichel from the Independent Luxembourg Trade Union Confederation (OGBL) is not in favour of such a sectoral reclassification. In his view, this would be an externalisation of the problem. Companies that were supported by the government during Covid also have a responsibility and cannot pass it on to the public, according to Freichel.
Industry representatives agree that jobs should be saved. However, René Winkin, director of the Federation of Luxembourg Industrialists (FEDIL), argues that in this case, the compensation for leaving cannot not be more attractive than the offer for further training.
According to employers and unions, the reasons for job cuts or reindustrialisation are linked to different causes. These include problems in supply chains, protectionist measures abroad, such as the Inflation Reduction Act in the US, and high energy prices.
The Fedil director still sees some wiggle room in the area of high network costs.
In conversation with RTL, Minister of the Economy Franz Fayot declared that the industry tripartite meeting will not be a crisis consultation.
He explained that the industrial sector in Luxembourg still counts almost 1,000 companies and in recent years, between 30 and 50 new companies have been established each year. He continued that it is not as if the industry has no value, but it is in transition. The Minister also agrees that if companies restructure or cut jobs, job retention plans should be the norm.
Regarding the high network costs, Minister Fayot explained that discussions are still ongoing. He is working on the issue together with Minister for Energy Claude Turmes.
One option is to spread the purchase of energy over a number of years, another is to rely on existing state financial aid, which in Minister Fayot’s view has not yet been fully exhausted.
