Successful conciliation expected in the public sector

Following meetings with the official conciliator in March 1998, the social partners in Luxembourg's public sector said they hoped to find a definitive solution to their pensions dispute.

A dispute broke out between public sector trade unions and the Luxembourg Government following the publication in mid-1997 of the latter's proposal for reform of the civil service pension scheme, aimed at controlling rising costs while encouraging convergence of the public and private sector schemes (LU9706111F). Following the failure of negotiations in January 1998 (LU9802146N), the largest public sector union, the General Public Sector Confederation (Confédération Générale de la Fonction Publique, CGFP ) triggered a procedure that could lead to a strike. However, the parties were obliged to undergo a conciliation procedure before the president of the Tribunal d'Arrondissement (the civil court of first instance).

Following separate meetings with the minister responsible for the public sector and the CGFP (LU9803152N), the conciliator met the social partners together on 26 March 1998. In the course of the meeting, which lasted over four hours, the two sides expressed a wish to reach an acceptable agreement and thereby avoid an "intervention by the lawmakers". The minister has again insisted on the need for fresh legislation to ensure pension funding over the coming years.

Participants are clearly not revealing everything that was touched on during the discussions; this suggests that the CGFP is now willing to negotiate over a transitional scheme covering civil servants currently in position, on condition that the Government is prepared to talk on the basis of the proposals and concessions drawn up in January 1998 (LU9802146N), and providing that the minimum retirement age (of 60) is not raised.

There will continue to be serious discussions throughout April 1998, as the Government wants the matter to be settled definitively as soon as possible.