Franz Fayot, Minister of Economy;
Credit: MECO
On the occasion of Labor Day on 1 May, Luxembourg's Minister of Economy, Franz Fayot, has issued a video message.
Minister Fayot considered 1 May 2022 as a special Labour Day as we are not out of the pandemic yet and since February, we have been living through a dramatic war in Ukraine. This war has caused further rise in energy prices and shortages in many sectors and which is of great concern to companies and employees.
Minister Fayot emphasised that as the Minister of the Economy, it is his duty to preserve employment.
During the pandemic, he recalled, employment was maintained thanks to various aids to companies and the partial unemployment scheme whilst to counter the effects of the war in Ukraine, the Ministry have found a solution through the Tripartite agreement.
He explained that the agreement makes it possible to stabilise the economy by supporting businesses as well as to compensate for the loss of purchasing power for the people who need it most. The salary indexation mechanism is adjusted for a period of two years, as has already been done in the past, however without calling into question the principle of salary indexation.
Elaborating on the Tripartite agreement, he argued that it will give companies predictability over the next two years and allow them to plan for the future and continue to make investments. At the same time, it will give employees job guarantee.
Moreover, for the households that need it the most and for the less well-off people, the Tripartite agreement will compensate for their loss of purchasing power resulting from the increase in energy prices.
Minister Fayot underscored that the Tripartite agreement is a fair and solidary agreement.
In this sense, he affirmed that 1st May is also a day of solidariry and wished everyone a "Happy Labour Day".
The video message from Minister Fayot is available online via: https://youtu.be/bTkh3YVON6g
