New agreement for white-collar workers in iron and steel

Download article in original language : LU9802144NFR.DOC

The new collective agreement for white-collar workers in Luxembourg's iron and steel industry, signed in January 1998, includes an overall pay increase of 1.85% spread over two years and ratifies an existing profit-sharing scheme.

Collective bargaining in the iron and steel industry is always followed with great interest in Luxembourg, as it is likely to act as a point of reference for negotiations in other sectors. A 1997-8 agreement for blue-collar workers was concluded in October 1997 (LU9711130N) and, after five rounds of talks in December 1997 and January 1998, the social partners confirmed a new agreement for white-collar workers at the end of January. The deal, covering 1,800 employees and running for two years from 1 January 1998 to 31 December 1999, includes a general pay increase of 1.6%, and a one-off bonus that gives a total increase over the two years of 1.85%.

The profit-sharing scheme agreed in 1997 (LU9704105N) has now been definitively introduced. The mechanism for calculating payments has been altered, with the aim of encouraging workers to participate more actively in mechanisms promoting production and the enterprise's profitability.

The agreements also includes: a virtual doubling of the "standby" bonus to almost LUF 500 per day; and a scheme whereby employees who take study leave are guaranteed their old jobs back.