The Luxembourg Bankers' Association (ABBL) and the ALEBA, OGBL and LCGB unions have reported that they recently reached a new collective agreement for the Luxembourg banking sector.
The agreement will cover the period from 2024 to 2026, with the final texts now in the approval phase. According to the unions, the new agreement emphasises the issue of employability and makes it possible to reward the loyalty and commitment of employees in the banking sector.
"The evolution of professions linked to banking services has accelerated in recent years, pushing bankers to develop new skills," explained Jerry Grbic, CEO of the ABBL. "At the same time, to respond to these challenges, Luxembourg banks face the triple challenge of attracting, training and retaining talent, all in a very competitive market and in a recruitment pool which is tending to dry up."
These challenges include: changing customer expectations; the integration of digital technologies and artificial intelligence (AI); increasingly strict regulations; competition from fintechs driving innovation and diversification of banking offerings; development of cyberattack and online fraud risks.
The social partners noted that they have reviewed certain provisions of the current agreement, in order to create a favourable environment allowing bank employees to better understand these developments, but also to strengthen the attractiveness of the banking sector and thus contribute to its sustainability and future growth.
Among the main points addressed in the new agreement is training, which the unions deem essential for the employability of employees in the banking sector, because it allows them to acquire the skills necessary to adapt to technological and regulatory developments and new customer expectations. The new agreement thus foresees a 10% increase in the budgetary envelope intended by banks for training for the 2024-2026 financial years. In addition, each approved employee is allocated an individual training allowance of a minimum of sixteen hours per year (excluding mandatory and reorientation training).
The new agreement also aims to reward the loyalty and commitment of banking sector employees. As such, the loyalty bonus has been revalued, the starting thresholds and the scale thresholds have been increased, and the amount that banks devote to rewarding employees has been increased. Furthermore, an exceptional bonus was negotiated upon the signing of this new agreement; it will be paid in January 2025.
The balance between private and professional life was also an important point in the discussions. A new chapter has been created and every company is encouraged to implement flexible working options tailored to the specific needs of the business and employees.
Main points of new collective agreement:
- exceptional bonus of €500 for all employees, payable in 2025;
- increase in the loyalty bonus;
- financial envelope to be distributed for 2024, 2025 and 2026 to reward the commitment of employees;
- increase in the starting amounts and thresholds of the four groups;
- increased presumption of skill acquisition;
- establishment of a minimum budget for training as part of an outplacement of €5,000 (maximum €8,000);
- 10% increase in the annual training budget;
- allocation of an individual training allowance of a minimum of sixteen hours per year.
