Last chance meeting in the public sector ends in failure

Download article in original language : LU9802146NFR.DOC

Talks in the Luxembourg public sector over government plans to reform civil service pensions broke down irretrievably in January 1998, and the social partners will now appear before a conciliator.

Since the publication in mid-1997 of draft legislation designed to reform the civil servants' pension scheme - aiming to control rising costs while encouraging convergence of the public and private sector pension schemes (LU9706111F) - negotiations have been continuing between public sector trade unions and the Government. The talks culminated in two days of intensive "last chance" negotiations on 21-22 January 1998 between the largest public sector union, the General Public Sector Confederation (Confédération générale de la fonction publique, CGFP) and the Government. However, following the talks, the Minister responsible for the public sector and the general secretary of CGFP informed the press that talks had broken down irretrievably.

In the negotiations, the Government had been prepared to ease the proposed reductions in pension entitlement, while in exchange raising the minimum retirement age from 60 to 61. Though noting a degree of progress and a number of improvements in the Government's position, the CGFP was finally unable to accept proposals that would have the effect of reducing acquired rights.

Now that talks have totally broken down, the parties are obliged to follow a special procedure that involves appearing before a conciliator; in the public sector, this post is held by the president of Luxembourg's civil court of first instance, the Tribunal d'Arrondissement.

The pensions issue has already led to industrial action in public transport (LU9802145N), and the dispute is being followed with keen interest; it will inevitably have repercussions on all employment-related issues, and could even affect the outcome of the legislative elections scheduled for June 1999.