Georges Mischo: "Social dialogue will not disappear even if we argue"

In a wide-ranging interview with Tageblatt, Luxembourg's Labour Minister Georges Mischo sought to explain the labour reforms that have sparked a wave of union protests and tension within the ruling CSV-DP coalition itself. Against the backdrop of preparations for a major protest on 28 June, the minister called for a more pragmatic view of the changes.

One of the main grievances of trade unions was the intention to revise the right to collective bargaining, especially in small enterprises. However, in companies without unionised cells, working hours can be regulated directly between employers and employees.

Equally controversial was the bill to liberalise Sunday working, which would extend working hours in commerce to eight hours. Trade unions saw this as a threat to the social model, but the minister is confident: "This is not an obligation, but an opportunity. No one is forcing anyone to work on Sunday."

Mischo recognised a worrying trend: the growing discrepancy between the number of unemployed and the number of vacancies. He stressed the need for the labour market to adapt to the new conditions, where flexibility of working hours could be a key factor.

Separately, he noted the difficulties in promoting the idea of increasing collective bargaining coverage to 80 per cent, a goal dictated by the EU minimum wage directive. However, the fate of the directive itself remains uncertain following a legal challenge in the European Court of Justice.

Although there are differing views on labour issues at CSV, the minister insists: "Different views are not divisive." In his manner, he compared the situation to football: "There are 670,000 coaches in Luxembourg and the same number of labour ministers." And added that he has no conflicts with either party colleagues or trade unions.

Amid Prime Minister Luc Frieden's criticism of Luxembourg's traditional corporatism, Mischo said, "The social model remains important. It's just that its participants have to get used to having new people in government with a different approach."

Georges Mischo expressed confidence that even after acute disputes, joint solutions can be found. He confirmed his participation in the new social negotiation formats announced by the Prime Minister and emphasised: "It is important not just to argue, but to seek a real compromise in the interests of the labour market and Luxembourg's social stability."