In April 1998, Luxembourg's Minister of Labour decided that legislation providing that only nationally representative trade unions may sign collective agreements applies equally to social plans accompanying redundancy programmes.
Download article in original language : LU9806166NFR.DOC
In April 1998, Luxembourg's Minister of Labour decided that legislation providing that only nationally representative trade unions may sign collective agreements applies equally to social plans accompanying redundancy programmes.
Only nationally representative trade unions are authorised to sign collective agreements in Luxembourg (LU9705107F) explained how. However, the union organisation with the highest union density in the banking sector - the Luxembourg Association of Bank Staffs (Association luxembourgeoise des employés de banque, ALEBA), does not enjoy this representative status (LU9706113N).
On 24 April 1998, because of an envisaged programme of collective redundancies, two banks - Hypobank Luxembourg SA and Vereinsbank International SA- commenced talks on setting up two social plans (containing measures to accompany and mitigate the redundancies), pending a merger in the near future. On the same day, two documents described as "social plans", and counter-signed by ALEBA, were sent to the Employment Administration - this is a precondition for the validity of collective redundancies - and the redundancies were announced.
The three nationally representative trade unions - OGB-L, LCGB and FEP- immediately registered a dispute with the National Conciliation Office (Office national de la conciliation, ONC), on the grounds that the employers had illegally halted negotiations without concluding a properly negotiated social plan.
The Minister of Labour at once decided that only those unions which had signed a collective agreement, and which enjoyed nationally representative status, could sign a social plan. The announced redundancies were therefore null and void, and negotiations over the social plans had to start all over again.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), Representative unions protest over banks' social plans, article.
