Minister of Labor tramples on the spirit of the European Directive on adequate minimum wages

Within the framework of the transposition of the European directive on adequate minimum wages, one of the main objectives of which is to extend the coverage rate of collective bargaining agreements (CBAs), the Minister of Labor, Georges Mischo, has entrusted the file to the Standing Committee on Labor and Employment (CPTE). At the end of the meeting held on October 8 at the CPTE, the OGBL, the LCGB, and the CGFP can only conclude that the national action plan (NAP) put forward by the minister does not provide for any tangible measures to move in this direction.

The directive stipulates that Member States must take the necessary measures to ensure that at least 80% of workers in each country can benefit from a collective agreement. With 53% of workers covered, Luxembourg is currently far from meeting this objective. The directive aims to guarantee adequate remuneration and to improve the living and working conditions of more employees than is currently the case. However, this is only possible on the condition that the negotiation of CBAs remains an exclusive prerogative of trade unions, as explicitly provided for by the directive and as mentioned by the OECD and the conventions of the International Labor Organization (ILO).

At the meeting held on October 8 at the CPTE, the Minister of Labor was supposed to present a national action plan promoting the negotiation of collective agreements to achieve the objectives set. This plan had been sent to the members of the CPTE a few days before the meeting, which was initially scheduled for September 24. Given the importance of this issue and the short deadline, the nationally representative trade unions – the OGBL, the LCGB, and the CGFP – had requested a postponement of this meeting and had drawn up a joint position detailing their position on the submitted action plan.

At the meeting on October 8, the minister stated that the trade unions’ position did not, in his view, add any value and that he was there anyway only to listen to the different positions – he would then decide alone regardless of the positions defended by the different parties within the CPTE. For the OGBL, the LCGB, and the CGFP, this way of proceeding is totally unacceptable. Minister Georges Mischo, by his statements, undermines the Luxembourg model of social dialogue and seriously jeopardizes social peace in Luxembourg. Never in the history of the CPTE has it been reduced to a mere discussion forum. Until now, it has always been a valuable place of dialogue where important decisions have been taken by consensus among social partners.

Furthermore, the minister has expressed his desire to allow individual employees or neutral delegates without union support to negotiate and sign collective agreements on their own in the future. The minister has refused to confirm that he intends to respect the current legislation in this matter as well as the spirit of the European directive, as well as the role of trade unions in collective bargaining. It is clear that the minister’s current position does not allow for a calm and constructive discussion. On the contrary, it constitutes a frontal attack on the right of employees to be represented by nationally representative trade unions, which, by their strength and independence, are the best guarantee for achieving the objectives set.

With this position, the Minister of Labor is calling into question one of the most important pillars of Luxembourg’s wage structure, which is obviously an insurmountable red line for our trade union organizations. The syndicates are calling on the government to perpetuate the Luxembourg model of social dialogue in order to find solutions by consensus, but also in compliance with national and European legislation in force.

Press release of the OGBL, the LCGB, and the CGFP, 8 October 2024.