Credit: SIP / Jean-Christophe Verhaegen
Despite the opposition of the OGBL trade union, the Luxembourg Government, the UEL business lobby and the LCGB and CGFP unions have agreed on a €830 million support package aimed at mitigating the effects of current inflationary pressures on businesses and households in the Grand Duchy.
The agreement, signed on the evening of Thursday 31 March 2022, followed several tripartite meetings (on 22, 23 and 30 March 2022) between the government, social partners and employee representatives.
This agreement introduces a series of measures including, on the one hand, aid for businesses, some of which are specific to the energy transition, and, on the other hand, measures aimed at compensating the loss in purchasing power of natural persons in light of soaring fuel prices and, in turn, rising inflation.
Should the economic and social situation worsen or another wage indexation be triggered in 2023, the government will convene a new tripartite meeting. In the meantime, this agreement remains in effect until 31 December 2023.
Speaking in the Chamber of Deputies (Parliament) on Thursday afternoon, ahead of the signing of said agreement, Luxembourg's Prime Minister Xavier Bettel emphasised that the Grand Duchy was entering a period of difficulty and uncertainty, but that support would be made available for those most in need. Nevertheless, he expressed his regret that the OGBL union had withdrawn its support for the agreement. According to the Prime Minister, the OGBL's proposals would have cost more than €1.5 billion.
The OGBL held a press conference on Thursday morning to discuss the "shortcomings" of the proposed agreement, particularly regarding the government's proposal to delay a second wage indexation this year predicted for August (the first is set for Friday 1 April 2022) until 2023, and to clarify its own proposals.
More details on the precise measures agreed by the government, the UEL, the LCGB and the CGFP will follow in the coming days.
