Social election campaign targets cross-border workers

During the recent social elections campaign, the trade unions stepped up their campaign among cross-border workers. The measures included an increased number of meetings in Luxembourg and neighbouring countries, as well as election posters in several languages. Cross-border workers constitute over 40% of private sector workers in Luxembourg. However, their presence can be viewed negatively during an economic crisis and when unemployment is on the rise.

Cross-border phenomenon

Traditionally, Luxembourg’s statistics on employment and unemployment rates are based on workers who are residents of the country. As a result, cross-border workers are not included in such data, although they account for over 40% of Luxembourg’s private sector workforce. However, recognising the scope of the cross-border phenomenon is critical for a successful employment policy in Luxembourg: between 1988 and 2004, cross-border employment increased by an annual average of almost 10%, while employment among residents only rose by an annual average of 1.7%.

The rise in cross-border workers has been attributed to Luxembourg’s booming economy, which has resulted in an increased demand for workers. As was the case with migrants who took up residence in Luxembourg more than a century ago, cross-border workers have come to the country in search of work due to the shortage of job offers in their domestic labour market. Over the last three decades, the growth in salaried employment among nationals has been modest and most of this growth can be attributed to the progression of female activity. Between December 2007 and December 2008, a total of 16,000 new jobs were created in Luxembourg, 67% of which were filled by cross-border workers.

Structure of cross-border employment

Over the past 10 years, a slight shift has occurred in the country of origin of cross-border workers employed in Luxembourg. More specifically, the proportion of cross-border workers from France and Germany has increased, while the share from Belgium has declined. In 2004, some 27.2% of cross-border workers were Belgian, while 51.8% were French and 21% were German.

Qualification levels

Starting at the highest qualification level, the proportion of graduates among Belgian cross-border workers (44%) is almost double the percentage for cross-border workers from Germany (23%). At 28%, the proportion of graduates among Luxembourg nationals is modest and slightly behind the figure for French cross-border workers and foreign residents. It should be added that about a third of national graduates are employed in education. The proportion of cross-border workers with only a lower secondary education is still below 20%, except for foreigners resident in Luxembourg for whom this figure is about 35%. Moreover, French cross-border workers allegedly only account for 8% of ‘lower qualified workers’.

Employed persons who have completed a higher secondary education make up the highest proportion of French and German cross-border workers in terms of qualifications, as well as among native workers.

Sector of economic activity

Regarding the sector of economic activity, significant differences emerge in terms of cross-border workers’ country of origin. Industry accounts for a relatively large proportion of cross-border workers, particularly those residing in France (18.4%). In the construction sector, only the German cross-border workers account for a significant proportion of workers which is higher than the general average. However, German cross-border workers no longer maintain the greatest presence in sectors such as retail trade, hotels and restaurants, and repairs, unlike their French and Belgian counterparts who now account for higher proportions of workers in these sectors of activity.

Meanwhile, the transport and communications sector continues to be an important source of employment for workers from Germany, a factor which may be explained by the rapid growth of German transport companies in Luxembourg. Financial intermediation, which includes banking activities, continues to show a mixed picture, attracting a proportionally higher share of Belgian and German cross-border workers, while having lower than average importance for French workers. The real estate, rental and business services sectors are also heterogeneous, accounting for significant proportions of both highly qualified and low qualified jobs. Furthermore, these sectors are the most important source of employment for French cross-border workers who seem to mainly hold less qualified jobs in these sectors.

More generally, cross-border workers appear to be in the majority in the industry and real estate sectors.

Occupational type

Almost two thirds of French cross-border workers are manual workers – a category which includes manufacturing workers, service workers and sales staff. This is just above the proportion noted for their German and Belgian colleagues. In terms of occupations at the higher end of the social hierarchy, directors, senior managers and salaried workers within the liberal and scientific professions are particularly well represented among Belgian cross-border workers (18.8%), compared with German cross-border workers (12.1%) and French workers (9.1%).

Looking at the composition by nationality or country of residence of the different occupational categories, it appears that half of the manual workers are cross-border workers – more than 30% of whom come from France. Cross-border workers also hold the majority of jobs in the liberal and scientific professions, while they account for 36% of director and senior manager positions. In relation to technicians and administrative employees, the absence in the survey of civil service involvement has yielded an incomplete picture regarding the national situation and underestimates the real importance of cross-border workers.

Trade union activities aimed at cross-border workers

During Luxembourg’s social elections in November 2008, the country’s two main trade union confederations – the Lëtzebuerger Chrëschtleche Gewerkschafts-Bond (LCGB, Luxembourg Confederation of Christian Trade Unions) and the Onofhängege Gewerkschaftsbond Lëtzebuerg (OGB-L, Luxembourg Confederation of Independent Trade Unions) – launched an information campaign for cross-border workers.

More specifically, the trade unions held information meetings in border towns such as Saarbrücken in western Germany, Thionville in northeastern France and Arlon, a Belgian municipality located in the Walloon province of Luxembourg, where LCGB and OGB-L also frequently hold committee meetings. OGB-L also launched three websites aimed specifically at Belgian, French and German cross-border workers (www.frontaliers-francais.lu, www.frontaliers-belges.lu, www.deutsche-grenzgaenger.lu). The confederation highlighted how its website initiative distinguished it from other internet initiatives, which perceive cross-border workers more as a ‘consumer’. OGB-L believes that cross-border workers should be viewed primarily as employees who contribute on a daily basis to Luxembourg’s richness and diversity and who are entitled to know their rights.

For its part, LCGB has dedicated part of its website to cross-border workers. Moreover, the trade union reached a cooperation agreement in 1985 with the Belgian Algemeen Christelijk Vakverbond/Confédération des syndicats chrétiens de Belgique (ACV/CSC, Belgian General Christian Trade Union) based on three elementary principles:

• a one-off trade union contribution enabling simultaneous membership of LCGB and ACV/CSC;

• legal and social assistance to their members irrespective of their membership of any other organisation;

• the implementation of a common structure for defending the interests of cross-border workers – namely, the Commission for Belgian Cross-border Workers, an action and pressure group for cross-border workers.

For OGB-L, the low participation among cross-border workers in social elections can be explained by a misinterpretation of the Luxembourg model of social democracy. However, despite several efforts by trade union organisations to provide information, interest among cross-border workers in social elections remains low. This can be attributed to a number of other factors. On the one hand, the rate of unionisation is very low (10%) in France, where about half of cross-border workers in Luxembourg come from. On the other hand, significant disparities emerge in the structure of salaried employment, which comprises 29% of nationals from Luxembourg, 27% of migrants resident in Luxembourg and 44% of cross-border workers; disparities also exist in the types of candidates taking part in the elections. Furthermore, not everyone is in total agreement with the Luxembourg trade union organisations or their message.

It is possible that, as a result of this situation, the representativeness of a body such as the employees’ chamber may be affected and perceived by some cross-border workers as a largely national body – although it is difficult to talk of discrimination towards cross-border workers as their interests constitute a concrete issue on the social dialogue agenda. In a recent newsletter, LCGB recognised that cross-border workers are the main victims of the economic crisis in Luxembourg. Even if large waves of redundancies have not yet taken place, the trade union confederation emphasised that there were 3,500 fewer cross-border workers in Luxembourg in December 2008 compared with the previous month.

References

Centre for Population, Poverty and Socioeconomic Policy Studies (Centre d’Études de Populations, de Pauvreté et de Politiques Socio-Economiques)/International Networks for Studies in Technology, Environment, Alternatives, Development (CEPS/INSTEAD), Les salariés frontaliers dans l’économie luxembourgeoise (in French, 1.4Mb PDF), Cahier économique, No. 100, STATEC-CEPS/INSTEAD, 2005.

Website

European Employment Services: www.eureslux.org

Odette Wlodarski, Prevent