Trade unions walked out of a meeting with Luxembourg's Minister of Labour, Georges Mischo, last week.

As reported by the Ministry of Labour, Minister Mischo received the social partners (unions) for a meeting of the Standing Committee on Labour and Employment (CPTE) on Tuesday 8 October 2024. At the centre of the discussions was the national action plan aimed at transposing Article 4 of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages within the European Union.

In accordance with the provisions of Article 4, this action plan to promote collective bargaining should be drawn up "after consulting the social partners or by agreement with them". The ministry argued that the CPTE meeting thus aimed to encourage a "constructive dialogue" on the subject and advance in the development of measures to meet the requirements of the directive.

The Labour Minister expressed his regret at the early departure of the union representatives during these discussions. The ministry noted that the preliminary draft it had prepared and which was to serve as a basis for the discussions, did not satisfy the unions. Faced with this situation, the minister reiterated the government's commitment to "maintaining an open and inclusive dialogue with all social partners, with the aim of reaching shared solutions and in the interest of all parties concerned".

"I take note of the way in which the discussions are taking place and I encourage a climate of trust and cooperation to address this issue of capital importance together. Our objective is to strengthen collaboration with all stakeholders involved," said Minister Mischo. "However, we cannot ignore changes in society. The world of work is undergoing a complete transformation. Indeed, 56% of delegates are neutral, i.e. not affiliated with a union. We are fully committed to taking these employees into account while ensuring a balanced representation of all stakeholders."

In a separate statement, the OGBL, LCGB and  CGFP trade unions said that the national action plan proposed by the Labour Minister "does not provide for any tangible measures" to move towards the extended coverage rate of collective bargaining agreements. Whilst the European direction aims to "guarantee adequate remuneration and to improve the living and working conditions of more employees than is currently the case", the unions argued that "this is only possible on the condition that the negotiation of [collective bargaining agreements] remains an exclusive prerogative of trade unions".

They also accused the minister of saying the unions' position "did not [...] add any value", with such statements threatening to "undermine the Luxembourg model of social dialogue".