As of today, 25 January 2021, after 20 meetings of the working group and 5 tripartite meetings over a period of 4 months, the parties have finally reached a final tripartite LUX 2025 agreement for the future of the Luxembourg steel industry, according to the LCGB trade union. 

The LCGB, majority union and portfolio holder in the tripartite file, confirmed that the agreement, established for a period of 5 years from 1 January 2021 to 31 December 2025, has included the majority of its demands, conditions and guarantees.

The agreement, built on the balance of an estimated overstaffing of 536 positions, including 18 without subsidy from the employment fund, guarantees that no redundancies, social plans or site closures will take place. In this context, the LCGB stated that it is satisfied that the Luxembourg social model has remained alive and faithful to these foundations for many years. In fact, since the steel crisis that hit the country in the 1970s, this same social dialogue has made it possible to avoid layoffs through tripartite agreements.

With a view to the design of the LUX 2025 agreement, which will also be the 8th of its kind, each partner has assumed its role in order to preserve employment and especially the sustainability of Luxembourg sites in an atmosphere that was described as both constructive and smooth, including what was described as constructive support provided by the government. The agreement will retain a highly qualified and very experienced workforce with a lot of know-how in Luxembourg necessary for the production of products with high added value of the global steel industry.

In detail, the agreement provides for the following:

Investments

A minimum guarantee of €165m on the overall budget of €202.5m up to the level of previous agreements. Following the LCGB's insistence on strategic and vital investments for the future of the Esch-Belval, Differdange, Rodange and Bissen sites, management has guaranteed an envelope of at least €65 million. The other investment projects resulting from the SCORE Plan are maintained and ArcelorMittal has confirmed its intention to keep the head office in Luxembourg with the construction of a new building.

Outsourcing

Compromise was found on the basis of the LCGB proposal in order to reduce, as much as possible, the activities to be outsourced. As a result, 60 positions were suspended from 132.5 initial positions, which will allow a possible reorientation of employees in CDR, and this in strict consultation with the social partners. In this context, the labour loan will be the preferred tool, which will guarantee the initial status of the employees concerned.

Early retirement

Early retirement adjustment of ± 237 employees for age groups up to the year of birth 1964 with an annual reassessment of the development of the CDR in order to analyse the situation with a view to possible other future demands beyond the year of birth 1964.

Reclassification unit (CDR 2021)

The LCGB also welcomed that a new 2021 CDR is an integral part of the agreement and will support the estimated overstaffing of 280 employees. This new CDR will have a transit mission as the overstaffing will be progressively transferred through the CDR. Unlike previous agreements, this is no longer a question of a massive entry of 280 employees at one time. The golden rule demanded and obtained by the LCGB will be respected: over-staffed registered staff will be kept as much as possible in employment according to the various components of the CDR.

Future of the Dommeldange & Bissen sites

The LCGB had expressed its regret over the very obscure strategy for the future of the Dommeldange site. Thanks to this denunciation, guarantees were obtained regarding the transfers of the 3 activities to Esch-Belval, Differdange and Rodange with staff specific to the company. The residual activities exclusively on machine tools will be continued and guaranteed at the Dommeldange site by AM employees for the duration of the agreement. For the Bissen site, as required by the LCGB, additional guarantees in terms of normative investments and guarantees, more technical clarifications of the development project of high added value fibres as well as galvanised wire have been obtained. The site will become the centre of excellence for manufacturing the flagship product of bonded fibres and significant quality improvements will be made to galvanised wire.