Luxembourg trade unions break off dialogue with the government

The trade union front in Luxembourg is bursting at the seams. Against the backdrop of the escalating conflict over pension reform and collective bargaining, the leading workers' associations - OGBL and LCGB - have announced a complete withdrawal from the social dialogue with the government.

Following Prime Minister Luc Frieden's high-profile State of the Nation speech, which the unions called an "anti-social manifesto", they took the unprecedented decision to refuse to participate in any working meetings with Health and Social Protection Minister Martin Despres, boycott meetings of the Standing Committee on Labour and Employment, and refrain from voting in the Economic and Social Council.

The criticism centres on the recently presented plans to reform the pension system. According to the unions, they unfairly shift the entire burden onto the shoulders of workers, especially young workers. The OGBL stresses that no prime minister has ever before shown such disregard for social dialogue. Nora Back, head of the union, said that there was no mention of raising the minimum pension in the speech, while employers are not expected to incur any additional costs.

LCGB chairman Patrick Dury criticised the whole process of public discussion on "Schwätz mat!" as a mere formality: none of the trade union initiatives were taken into account and the proposals to extend the deduction period "have nothing to do" with what was discussed with the public. He declared that "social dialogue is officially dead".

Tellingly, the day before, Luc Frieden had rejected the unions' request for a tripartite meeting between employers and workers, effectively "mocking" the need for a joint resolution of contentious issues. This was the last straw for both organisations.

The OGBL and LCGB have sent an official letter to the prime minister stating: they will no longer participate in any negotiations until a tripartisan meeting on key social issues is scheduled.

Thus, the country is entering a period of sharp aggravation of the social climate. And if the government does not change course, it may become the beginning of an open confrontation between the workers and the authorities.