In brief, agreement in principle reached in Luxembourg’s banking sector

On Friday 11 May, social partners in Luxembourg’s banking sector announced that they had reached an agreement in principle on a new collective agreement for banks, to run from 1 January 2018 to 31 December 2020. The finer details of the agreement, which comes after 18 months of tough negotiations, have yet to be unveiled. The deal still needs to be ratified by bodies on both sides and, more importantly, needs to be drawn up. The parties have only revealed that the so-called conjunctural bonus, paid in June, will be increased by 10% for 2018. It will however be replaced by a new loyalty bonus, which will utilise an alternate calculation method. Meanwhile, a joint statement indicates that the deal contains “improvements” in the area of working time as well as to the “existing training agreement”, without providing further clarification.