Prime Minister Xavier Bettel signed the agreement following meetings of the Tripartite Coordination Committee, with representatives of UEL, LCGB and CGFP. The OGBL was missing, which slammed the door during the negotiations.
Prime Minister Xavier Bettel proceeded, this Thursday, March 31, 2022, to the signature of the agreement following the meetings of the Tripartite Coordination Committeewith the representatives of the UEL (The Union of Luxembourg Enterprises), the LCGB (Lëtzebuerger Chrëschtleche Gewerkschaftsbond) and the CGFP (Confédération générale de la Fonction publique). This agreement ceases to have effect on December 31, 2023.
The big absentee is the OGBL which decided, during a press conference this Thursday, March 31, not to submit to these agreements. Read our article
Purchasing power and energy…
The agreement introduces a series of measurements* aimed at mitigating the effects of the current inflationary pressure on both businesses and households. This package contains, on the one hand, aid for companies, some of which is specific to the energy transition, and, on the other hand, measures in favor of the purchasing power natural persons.
Index: a blow for businesses!
Xavier Bettel, Prime Minister, stated that “solidarity must be paramount“faced with an economic situation”uncertain“. For the indexation of wages, he specified that many companies “will not be able to cope with several index tranches in the year”.
The indexing mechanism is not called into question Luxembourg. In exchange, a compensation mechanism was put in place. For example, people who earn the minimum wage will receive 44 euros. “They will also be able to save 84 euros in energy”confirmed Patrick Dury, President of the LCGB.
There will not be three salary increases in 2022. The only one planned is that of the beginning of April. In the event that the economic and social situation were to worsen during the year 2023 or an additional index tranche would be triggered in 2023, the government undertakes to convene a new meeting of the Tripartite Coordination Committee to “discuss it”.
On video
Measures*
- A reduction of 7.5 cents/€ per liter of fuel (Oil, Diesel, Gasoline) until the end of July 2022.
- Rent freeze until the end of 2022 and adjustment of the rent subsidy.
- Adaptation of the “Prime House” to make it more social.
- The index tranche scheduled for April 2022 would be maintained.
Read Index: wages increase on 1 April 2022 in Luxembourg - Adjustment of the tax credit linked to the CO2 tax.
- Introduction of specific aid for companies affected by energy prices. This aid will take into account the needs of companies in terms of energy transition.
Read Postponing the next two indexations by one year: that’s NO!
