As a part of the renegotiation of the collective agreement (CWA) for bank employees in Luxembourg that falls due for renewal in early 2017, the LCGB trade union and the Syndicat des Employés du Secteur Financier (SESF) have carried out a survey on working conditions and pay in the financial sector in Luxembourg, between 15 May and 15 July 2016.
While the LCGB-SESF cannot yet reveal the detailed results of the survey, they have stated that the results have confirmed the priorities it had set.
1. Salaries
There is high discontent among employees is regarding the lack of wage growth in recent years and the way the current wage system functions.
The last linear salary increase through a CWA dates back to 2009. In addition, the latest convention - covering the years 2014 to 2016 - set a wage freeze for three years. They acknowledge that the system is based primarily on merit, which is considered by many to be subjective.
The financial sector is understood to be performing well and employees should reap the recognition they deserve, according to the LCGB-SESF; for them, the issue of increase in wages and a wage development that is less arbitrary will be the focal point of the negotiations.
2. Classification System
The CWA classification system in Luxembourg’s banking sector is based on six groups of functions that have a direct impact on remuneration of employees; however, it is clear that some groups are almost never used. Moreover, many employees are excluded from the collective agreement if they are not yet senior executives within the meaning of the law. Finally, the description of the different groups and functions referenced has not been updated for a long time, according to the LCGB-SESF.
For LCGB-SESF, major work will be done at this level in order to update the classification system and to ensure that through this system there will be dynamism in careers.
3. Working hours
Respecting working hours including proper accounting is not the case in all companies, according to the LCGB-SESF. Better control of hours worked, actions to counter excesses of maximum periods of time for work, and a respect for the right to recovery periods are necessary for improving the current situation.
The LCGB-SESF also believe that access to part-time working must be improved and that certain new forms of work schedules (e.g. staggered working hours) must be better regulated.
4. Work and employability
The question of the protection of jobs in the financial sector and of improving the employability of employees in the sector resurfaced during each round of negotiations since the 2008 crisis.
The latest CWA has established, for example, the right to an outplacement for dismissed employees for economic reasons without setting a precise framework. Similarly, a minimal budget has been defined (1%
of payroll) to be given to vocational training for contracted employees but without obligation to demonstrate the use of it to enhance their employability.
For the LCGB-ESFS, the next negotiations will revisit some steps to make them more efficient and reconsider other measures in order to benefit from leave without pay or the issue of age management in companies.
5. Advancing on the psycho-social risks and CSR
The establishment of a sectoral policy to prevent psycho-social risks (work stress, burnout, etc.) will also remain a priority for LCGB-ESFS in the future due to the absence of a national policy regarding this matter.
According to the LCGB-SESF, the social partners (trade unions) have demonstrated their ability in the past to find sectoral agreements on important issues such as moral harassment. The issue of prevention and the management of psycho-social risks should also be able to advance through sectoral social dialogue.
Finally, the issue of the corporate social responsibility remains a priority. The LCGB-ESFS insists on very concrete measures and commitments to employees in this area.
The detailed demands by the LCGB-ESFS will be presented and discussed in September with other unions in order to achieve a common list of demands.
