Better wages, purchasing power and redistribution of wealth

The OGBL has defended and will continue to defend the automatic indexation system: in 2022, the government and the employers, with the help of the LCGB and the CGFP, attacked the index and risked this pillar of the Luxembourg model. The OGBL was the only trade union to oppose this: in companies, on the streets and in the media, OGBL militants defended the index. The indexation system is the main tool for maintaining purchasing power in the face of price inflation. The OGBL will never allow this achievement of the trade union movement to be attacked or manipulated, as we have proven.

The OGBL regularly negotiates over 240 collective bargaining agreements (CBAs) in all sectors. The industry syndicates within the OGBL negotiate over 90 CBAs covering more than 20,000 workers. Salaries are a central part of CBA negotiations, with progressive pay scales that recognize employees’ skills, seniority and experience. This approach ensures fair and transparent compensation and recognizes workers’ efforts by redistributing wealth to those who created it.

Unfortunately, in some companies in the industrial sector, wages are at or near the social minimum wage. Efforts are being made to organize workers in these low-wage companies with the aim of negotiating new collective agreements with better salaries and working conditions. The OGBL is committed to negotiating CBAs that guarantee fair and harmonious working conditions for all, wherever it wins elections and where there is a demand from the staff.

To encourage greater coverage of CBAs, the law needs to be reformed: facilitating (sectoral) bargaining, revising conciliation procedures, and expanding trade union means through the right to a warning strike.

At the same time, we insist on measures to reduce the number of working poors, starting with a structural increase of the social minimum wage by 10% ( €250 for unskilled workers and €300 for skilled workers), which would guarantee more decent living conditions for all. The fight against involuntary part-time work will continue, with full-time contracts remaining the norm. Permanent contracts must also remain the norm and recourse to fixed-term or temporary contracts must be limited. The recourse to temporary workers should only be an exception during peak periods. A full-time, permanent contract gives workers and their families more guarantees and perspectives.

We insist that the intensity, stress and arduousness of work be valued by identifying all rhythms, types and conditions of work in order to adequately compensate employees in the industry. Workers create company profits through their work, and the OGBL therefore demands bonuses based on profit sharing.

Travel to and from work has become an increasing financial and time burden for workers. Bus routes serving the industrial zones must be maintained and expanded. To address the crisis of purchasing power, the kilometer allowance must be increased.

Reduction of working time with full continuation of salary

Reducing working time is one of the key demands of the trade union movement. At the national level, the working week has not been reduced since the 1970s. In some collective agreements, the OGBL has negotiated reductions in working hours. In a situation of increasing productivity and work intensity, we strongly believe in the need to reduce weekly working hours with no loss of pay. The OGBL calls for a nationwide reduction in weekly working hours, to be implemented through collective bargaining agreements. Particularly in the industrial sectors, where there are many different ways of work organization, situations need to be examined on a case-by-case basis.

To improve the work-life balance, the OGBL also supports the introduction of paid breaks and a 6th week of leave to promote well-being and productivity. To give employees greater autonomy, the introduction of time savings accounts (comptes épargne-temps – CET) and well-defined flexitime are essential. Clear working schedules and additional social leave will enable workers to manage their working time more flexibly, in line with their personal and family needs, to further facilitate the reconciliation of private and professional life.

The OGBL defends the right to part-time work with the right to return to full-time work in order to provide greater career flexibility and to meet the individual needs of employees.

The right to disconnect must be implemented with clear limits, allowing workers to disconnect from work outside of working hours without worry, in order to improve work-life balance. Finally, we insist on fair recognition of all hours worked, regardless of where they are spent. Industry workers must be recognized for their efforts and the time they spend at work, whether on-site or teleworking.

Reindustrialization plan for greater resilience and social justice

The number of jobs in Luxembourg’s industrial sector has been declining for years, partly due to shareholder greed and partly due to unnecessary restructuring. The many crises of recent years have demonstrated the importance of production and industry for the stability of society and the economy.

It seems obvious that essential production companies should no longer be passed on to big groups from third countries that decide only in the interest of capital. The OGBL is aware that the sole pursuit of profitability and shareholder retribution often leads to relocations, layoffs or, even worse, closures. Under no circumstances should workers and their families suffer the consequences of decisions based on thoughtless, money-driven priorities. A national plan for investment in strategic, essential and interconnected industries must be drawn up to promote autonomy and resilience, taking into account the ecological transition, while maintaining and creating stable, quality jobs.

Legislation must be strengthened to promote social dialogue in the context of job retention plans (plans de maintien dans l’emploi – PME) or social plans to avoid abuse of these measures. This means obliging companies to consider the PME as a preliminary stage to a social plan, and reviewing the deadlines and information to be provided in order to guarantee serious negotiations. In the event of disagreement, the possibility of conciliation before the National Conciliation Service (Office national de conciliation – ONC) should be provided for during the negotiation of a PME.

Public aid must be subject to conditions. Today, we sometimes have the impression that it only serves to maintain the profit margins of companies. We must demand that companies first invest in new facilities and infrastructure (e.g. canteens, creches, etc.). In addition, companies must assume their responsibilities and respect environmental standards, put an end to precarious work, guarantee good working conditions and respect employees’ rights throughout the supply chain.

Emphasis must be placed on education through a right to lifelong learning and the creation of a training center “Léierbud” in order to invest in quality jobs and the future of industry in Luxembourg. Companies must take responsibility for financing this training center. Trade unions, together with ministries and schools, should be involved in the decisions concerning the governance of the training center.

Our Health, Our Social Security and Our Pensions

In 2023, the OGBL stood shoulder to shoulder with our colleagues in France as they defended their pension system against government attacks. In Luxembourg, we are also defending the legal retirement age and early old-age pension rights.

Taking into account the situation of Luxembourg’s industrial sector, the OGBL will defend and seek to improve the early old-age pension system. The conditions entitling workers to early old-age pension from the age of 57 must be defended and extended, taking into account the specificity and arduousness of the activity.

The health and safety of workers is a priority for the OGBL. We strongly defend our public health system and we must guarantee access to quality health care for all employees. The OGBL fights for better protection and support for sick workers, and for adequate follow-up of their return to work. Mental health at work is also essential: more measures to combat moral and sexual harassment, as well as stress and burnout, must be included in legislation and collective agreements.

To ensure better health and safety at work, we need to give more rights to staff delegations, in particular the safety delegate and the equality delegate. They must have the means to intervene effectively in the event of safety problems or inadequate working conditions. Binding measures to protect health in the event of extreme heat should be introduced at national level, e.g. temperature limits for light physical work (28°C) (22°C for very strenuous work) or sedentary work (28°C). The right to withdraw from work must be better defined and organized.

The OGBL fights against discrimination and inequalities between sexes or related to sexuality in the industry. All workers must be treated equally and with respect, regardless of their gender or sexual orientation.

Tax justice for workers

The phenomenon of “cold progression”, i.e. higher taxation when an index tranche falls, must be countered by adjusting the tax scale to inflation. This will preserve workers’ purchasing power by ensuring that their index tranche is not fully reflected in their net salary.

To counteract the extremely high rate of working poors in Luxembourg, the minimum social wage must be exempt from taxation. The lowest net salaries will be increased in order to improve the living conditions of these workers. The tax brackets must be widened in order to flatten the “Mëttelstandsbockel”.

The OGBL demands a higher taxation of capital income and thus a fairer tax treatment between work and capital. At present, capital income is taxed more favorably than wages or pensions. In fact, two-thirds of the Luxembourg government’s tax revenue comes from taxes on wages and pensions. In order to reduce inequalities, the OGBL calls for an increase in the maximum personal income tax rate and the reintroduction of a wealth tax, which would make it possible to redistribute wealth more fairly and finance quality public services.

Finally, we are fighting for equal treatment of resident and crossborder workers in tax matters, as well as a review of class 1a to put an end to the injustices suffered by single parents and widows/widowers.