the departure of the government from the tripartite negotiating table whereas the talks had begun on March 17th. On April 27th, after an umpteenth meeting, the social partners and the governments parted on a disagreement on the “index”. Considered by the social partners and the socialists, the LASP, which is part of the government with Jean-Claude Junker’s CSV, the basis of Luxembourg’s social model, this wages and pensions indexation system, unique in Europe, has been questioned for several ye
…Luxembourg: after the tripartite talks failure, the debate on the social model in Luxembourg is postponed until the autumn
Index. On May 5th, the government proposed to adjust “the index” by modifying the shopping basket which is used as a reference for the indexation (neutralization of the regulated prices, of oil, alcohol and tobacco). It also suggested to level off the wages indexation to twice the minimum social wage, i.e. 3365.52 euro. But these proposals were considered inacceptable by the trade unions. “The index represents the only protection for the employees and pensioners’ purchasing power and is an essential element of the social peace of our country” reminded the LCGB. However, Junker announced that new studies would be carried out to assess Luxembourg’s competitiveness. Afterwards, he plans to call together another tripartite negotiation, probably during the autumn.
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