OGBL calls for a review of the government's plan to combat poverty

The Luxembourg government has presented a plan to combat poverty, promising to strengthen protection for vulnerable groups and reduce social inequality. However, the country's largest trade union, OGBL, considers the proposed measures to be insufficient and not commensurate with the scale of social reality.

A statement signed by OGBL President Nora Back emphasises that the strategy lacks structural solutions to one of the main factors of poverty: the housing crisis. According to the union, rising rents and property prices are directly undermining the purchasing power of low- and middle-income households. More and more people, even those working full-time, are finding it difficult to cover their basic expenses.

Against this backdrop, OGBL points to another key shortcoming: the lack of a decision on a substantial increase in the minimum social wage (salaire social minimum). In a country that regularly ranks among the leaders in terms of the proportion of the working poor, the fight against poverty is impossible without a guarantee that work provides a decent standard of living, the trade union emphasises.

According to European criteria, the minimum wage should be at least 60% of the median wage or 50% of the average wage. These benchmarks are enshrined in EU analytical and regulatory documents and are considered the threshold for decent pay. According to the OGBL, the current minimum income in Luxembourg remains below these figures. At the same time, the cost of living — rent, energy, food — continues to rise.

The trade union insists that raising the minimum wage is not an abstract demand, but a social, economic and moral necessity. Higher incomes for low-paid workers can support domestic consumption, strengthen the social security system and reduce dependence on additional social benefits.

In response to arguments from employers, in particular the Union of Luxembourg Enterprises (Union des entreprises luxembourgeoises), which warn of risks to competitiveness, the OGBL argues that many companies have sufficient financial reserves and that a number of sectors are highly profitable. Given the productivity gains of recent years, the union considers it logical to distribute the wealth created more fairly.

The minimum wage, Nora Back emphasises, does not concern a marginal group, but tens of thousands of workers — young people, women and employees in key sectors such as cleaning, catering and retail. These professions are fundamental to the functioning of society and, according to the trade union, deserve adequate recognition, including financial recognition.

The OGBL is calling on the government to rethink its priorities and go beyond just making small changes. The union thinks that without a bold wage policy, the fight against poverty will just be words. Luxembourg, with its considerable resources, has a responsibility to ensure decent working conditions and maintain social cohesion in the long term.