On Thursday 8 August 2024, the LCGB, ALEBA and OGBL trade unions issued a statement in which they criticised what they described as certain financial institutions' attempts at "disguising collective redundancy plans".
The unions denounced the "new common practices" of "disguising" collective redundancies "in an already fragile economic context". They claimed that certain banks - notably J.P. Morgan - and other companies in Luxembourg's financial sector of deploying such tactics. "These methods raise ethical and social responsibility issues," they said, adding that such methods were not only aimed at reducing costs (primarily through outsourcing) but also demonstrated "a blatant disregard" for employees who have long "contributed to the success of their companies".
"By opting for paltry compensation, these banks are trying to avoid the consequences of a social plan that could cost them much more in terms of reputation and responsibility," stated the unions.
They accused these companies of putting short-term cost savings first, "to the detriment of human dignity", and stressed that employees "deserve respectful and fair treatment". According to the unions, such companies offer "a pittance" as compensation, a practice they described as "unfair" and indicative of "a lack of recognition for [employees'] work and dedication".
In their statement, the LCGB, ALEBA and the OGBL called on the banks in question to "reconsider their redundancy strategies and adopt more humane practices", arguing that "redundancy should be a last resort" - and even then it should be managed in a way that least disrupts employees socially and financially.
The unions also called for greater transparency in decision-making regarding redundancies, as well as "a commitment to ensuring fair and equitable working conditions for all employees". They argued that banks should show social responsibility and implement measures that support their employees, "even in difficult times".
The unions concluded by stressing the "crucial importance" of social dialogue in ensuring a "respectful" and "collaborative" working environment, which takes employees' concerns into account.
