Article

New government elected

Published: 27 September 1999

In August 1999, a new coalition government took office in Luxembourg, following the general election in June. The change of administration is unlikely to herald any fundamental change in direction as regards employment law, though the new government will seek to encourage capital- and profit-sharing by employees. There will also be a review of civil servants' pay.

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In August 1999, a new coalition government took office in Luxembourg, following the general election in June. The change of administration is unlikely to herald any fundamental change in direction as regards employment law, though the new government will seek to encourage capital- and profit-sharing by employees. There will also be a review of civil servants' pay.

The general election held on 13 June 1999 saw the Christian Social People's Party (Chrëschtlich Sozial Vollekspartei, CSV) winning 30.2% of the vote and 19 out of 60 seats in the Chamber of Deputies. Its former coalition partner, the Luxembourg Socialist Workers' Party (Lëtzebuergesch Sozialistesch Arbechterpartei) won 24.2% of the vote and 13 seats, and was overtaken as the second party in the Chamber of Deputies by the liberal Democratic Party (Demokratesch Partei, DP), with 22% of the vote and 15 seats. A new coalition was subsequently formed by the CSV and DP, led by incumbent Prime Minister Jean-Claude Juncker. In the statement of the new government's programme issued on 12 August, Mr Juncker described the change in government as "a new era".

With regard to current important issues in employment policy, the new government does not foresee any legislative change leading to reduced working hours; instead, it hopes to focus its efforts on a reformulation of work organisation in the framework of the National Action Plan on employment (LU9903195F). Vocational training, too, will be central to government policy concerns.

There will be no fundamental change in direction in the area of labour law, though the government wants to encourage capital- and profit-sharing by employees. Thought will be given to a review of the law on collective agreements, and clarification of the criteria governing the representative status of trade unions (LU9905104F).

The government is aware of disagreement with regard to the level of public sector pensions, and has decided to embark on a comparative study of private sector pensions and those in the new scheme used in the public sector. It has also agreed to undertake a review of civil servants' pay (LU9808173F).

Eurofound recommends citing this publication in the following way.

Eurofound (1999), New government elected, article.

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