Single status for all private sector workers to reduce absenteeism

In accordance with the conclusions of the Tripartite Coordinating Committee of Luxembourg in April 2006, the social partners have started negotiations to converge the status of blue-collar and white-collar workers in the private sector in order to represent them within a single system. The project aims to reduce the rate of absenteeism in companies and thereby the financial burden on the sickness fund, while also ensuring that the convergence plan does not impact negatively on the economy. The initiative will entail a number of key legal and organisational reforms.

Convergence towards a single status

The social partners have long called for a single status for all wage earners in the private sector, and the Tripartite Coordinating Committee (Comité de coordination tripartite) finally adopted the principle on 28 April 2006. The key aim of the project is to merge the status of blue-collar and white-collar workers in the private sector in order to represent them within one system. The Luxembourg Confederation of Independent Trade Unions (Onofhängege Gewerkschaftsbond Lëtzebuerg, OGB-L) and two employer groups, the Union of Luxembourg Enterprises (Union des entreprises Luxembourgeoises, UEL) and the Federation of Artisans (Fédération des Artisans), agree that convergence must go beyond merely extending the system for employees to manual workers.

Reducing absenteeism

An integral idea of the reform towards a single status for private sector workers is to raise awareness among companies on managing absenteeism. According to UEL, this objective can be achieved only if companies are given adequate means and resources. Indeed, beyond the motivation and awareness-raising actions that companies can undertake, their powers of sanctions and control must be improved in order to eliminate abusive absenteeism among staff and to reduce the overall level of absenteeism.

UEL has made the first move in this regard by proposing a series of practical measures, namely: redefining the basis of assessment for sick pay, ensuring that workers contribute to sick pay, verifying medical certificates and monitoring workers who report sick.

More company responsibility for sick pay

The Federation of Artisans has reiterated that the convergence of the status of blue and white-collar workers must meet several criteria, and insists that the reform cannot entail an additional financial burden for the economy as a whole and must address specific problems in labour-intensive activities. In fact, as a result of the reform, companies are more likely to face a greater financial burden, assuming that the employer organisations accept the principle of sick pay (Lohnfortzahlung) for manual workers. This would then make enterprises responsible for payment of expenses for the duration of the sick pay of these workers, whereas in the current system, the cost is covered jointly by the employer and the sickness fund. This added responsibility for employers should therefore give them an extra incentive to ensure reduced absenteeism rates among their staff.

Several reforms planned

The principle of a single employee status will be introduced by social security reform, and will ensure that two funds are available to all workers: the sickness fund and the single pension fund. Moreover, the harmonisation of the status of both working groups will require a reform of labour law. However, it will not be easy to eliminate the differences that exist between manual workers and employees, particularly in relation to overtime pay, bonus payments and redundancy pay.

Among the trade unions, the OGB-L and the Luxembourg Confederation of Christian Trade Unions (Lëtzebuerger Chrëschtleche Gewerkschafts-Bond, LCGB) will have to work on merging the Luxembourg Union of Private Employees (Chambre des Employés Privés-Luxembourg, CEP-L) and the Chamber of Labour (Chambre de Travail/Arbeiterkammer Luxemburg, AK-L) to create a single representation for private sector workers.

Negotiations agenda

The trade unions are required to reach an agreement before the end of the year. They will then present their position to the government, before starting to negotiate with the employers. Nevertheless, the Chair of LCGB, Robert Weber, warns that the entire process could take several years before the single employee and manual worker status becomes a reality.

Odette Wlodarski, Prevent