In March 2002, the Luxembourg government and the CGFP trade union confederation signed a three-year agreement for around 40,000 public sector workers, providing for an annual pay rise of 1.6% .
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In March 2002, the Luxembourg government and the CGFP trade union confederation signed a three-year agreement for around 40,000 public sector workers, providing for an annual pay rise of 1.6% .
On 21 March 2002, without any prior public notice being given, the government and the General Public Sector Confederation (Confédération générale de la fonction publique, CGFP) announced that they had signed a new three-year pay agreement for the public sector. The relevant Chamber of Deputies' parliamentary committee was informed only an hour beforehand, and this resulted in some disgruntled reactions among a number of deputies. The previous pay agreement in the public sector dated from 29 May 2000 (LU0007141F) and expired on 31 December 2001: it provided for a pay rise of 2.5% in 2000 and a further increase of 1% in 2001.
The new agreement was endorsed by the CGFP 'conference of committees' by 405 votes to 12, with two abstentions. The three-year deal provides for an annual 1.6% pay increase in 2002, 2003 and 2004, and includes a review clause to be triggered in the event of an improvement in the economic and social situation. The agreement covers 16,000 civil servants and white-collar staff employed by the state, 2,200 blue-collar staff employed by the state, and 21,000 employees working in 'assimilated' sectors such as local authorities and the railways. It is estimated that the agreement's provisions will cost EUR 22.5 million a year. The general secretary of CGFP described the settlement as a 'reasonable and acceptable agreement'.
The announcement of the agreement did not go down well with the Federation of Luxembourg Industrialists (Fédération des industriels luxembourgeois, FEDIL) employers' organisation. FEDIL believes that, although the pay increases agreed are the average of what has been negotiated in the private sector, it should not be forgotten that the public sector has a system of automatic annual and biannual salary increases, which mean that the 1.6% increase represents much more than a similar increase awarded by private enterprises. There is therefore a danger that the agreement will further widen the pay gap between the public and private sectors. The director of the Association of Luxembourg Banks and Bankers (Association des banques et banquiers luxembourgeois, ABBL) claims that the banking sector is finding it increasingly difficult to recruit staff in Luxembourg because of these pay differentials to the advantage of the public sector.
The Luxembourg Confederation of Christian Trade Unions (Lëtzebuerger Chrëschtleche Gewerkschafts-Bond, LCGB) stated that the new public sector agreement is 'quite normal, it is not outside the framework of what happens in the private sector, and it reflects the economic situation'. The Luxembourg Confederation of Independent Trade Unions (Onofhängege Gewerkschafts-Bond Lëtzebuerg, OGB-L) had argued for a one-year agreement because of economic uncertainties, and stated that the outcomes did not match its expectations. Other public sector trade unions were as usual excluded from the talks with the government.
Eurofound anbefaler, at denne publikation citeres på følgende måde.
Eurofound (2002), New pay agreement signed in public sector, article.
