Conciliation on public sector pay

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Following the long-running dispute over new legislation reducing public sector pensions, in October 1998 Luxembourg's public sector mediator started to address a legal claim for an increase in civil servants' pay.

On 31 March 1998, the General Public Sector Confederation (Confédération Générale de la Fonction Publique, CGFP), addressed to the president of the Civil Court of the First Instance (Tribunal d'Arrondissement), in his capacity as mediator, a dispute between itself and the government as to the determination of the salaries of civil servants and state employees. The trade unions are seeking pay increases. The case was first discussed in a meeting on 12 October 1998, having been delayed by the government's refusal to discuss the matter at all until the long-standing issue of civil servants' pensions was resolved. Following the adoption of the law of 21 July 1998 on reducing civil servants' pensions (LU9808173F), the parties met for an "exploratory exchange of views" on the pay issue with a view to developing their respective positions.

Civil servants' pay for the period 1995-9 is already governed by legislation. However, at the time the law was adopted it was agreed that, from 1 January 1997 onwards, the government would launch discussions as to whether there were grounds for an upward review of pay on the basis of changes in economic, social and budgetary parameters during 1995 and 1996.

Given the divergent views separating the parties, it has been decided that discussions will resume after internal studies have been carried out.