Proposed new pay scales cause controversy in iron and steel
Published: 27 March 2000
Trade unions and employers have differing positions on the introduction of new pay scales into the collective agreement for white-collar workers in Luxembourg's iron and steel sector collective agreement. It was decided in February 2000 to invite an outside management consultant to produce a report based on a set of criteria to be drawn up by the social partners.
Download article in original language : LU0003130NFR.DOC
Trade unions and employers have differing positions on the introduction of new pay scales into the collective agreement for white-collar workers in Luxembourg's iron and steel sector collective agreement. It was decided in February 2000 to invite an outside management consultant to produce a report based on a set of criteria to be drawn up by the social partners.
The existing collective agreement for white-collar workers in the iron and steel industry (LU9802144N) expired on 31 December 1999. At a meeting on 24 February 2000, the management of ARBED, the sector's main employer, presented an assessment of demands submitted by the Luxembourg Confederation of Independent Trade Unions (Onofhängege Gewerkschafts-Bond Lëtzebuerg, OGB-L) and the Luxembourg Confederation of Christian Trade Unions (Lëtzebuerger Chrëschtleche Gewerkschafts-Bond, LCGB), which mainly focus on the introduction of new pay scales.
Senior executives of the company said that they could accept the principle of introducing new pay scales, but they challenged the representativeness of the sample of functions that the unions had analysed and assessed. What is more, they were unable to agree to age-related, incremental pay rises within the various scales. Given the complexity of the issue and its implications for future pay policy, ARBED felt that it needed to have an additional document on the subject drawn up by an outside management consultant.
Trade union representatives have expressed their disapproval of the position adopted by company management. They state that, although the company has been aware of the unions' intentions in this area since June 1999, it has now introduced a new item into negotiations, which the unions are concerned may slow down the negotiations. However, the unions are determined to achieve a satisfactory solution as soon as possible, and have not rejected the employers' proposal as long as it is preceded by an initial study which, following consultation with the unions, should lead to the production of a list of general principles to be given to the management consultant.
Eurofound recommends citing this publication in the following way.
Eurofound (2000), Proposed new pay scales cause controversy in iron and steel, article.
