15 Sep

2021

By / bintoromover

Collective Bargain Agreement Luxembourg

Overall, a study by Statec`s National Statistics Office shows that in 2008, 50.1% of employees in the private sector were covered by collective agreements, although there are significant differences between sectors. For example, in the construction sector, where there is a national agreement, 73.0% of employees were insured, compared to 68.2% in finance. However, in hotels and restaurants, this figure was only 1.2%.2 On the employers` side, agreements that must be concluded in writing and notified to the Ministry of Labour can be concluded by employers and employers` organizations. There are no wage negotiations at national level for the whole economy, although the legislation introduced in 2004 allows for the first time agreements at national level in the field of social dialogue. Ideally, all the unions concerned should sign the agreement. However, if this is not possible, the agreement may be signed by one or more of the unions, provided that they also invite the other unions to sign. If the other unions are not willing to sign, the unions that wish to do so can continue, provided that they have, individually or collectively, the support of at least 50% of the workers covered by the agreement, as shown by the last choice of the workers` representatives. Before negotiating a standard collective agreement, the employer must ensure that it is not subject to a mandatory collective agreement. There are many more agreements at the company level than at the sector level: 69 company agreements were registered with the Ministry of Labour in 2011, compared to only six.1 On the recommendation of the Inspectorate of Trade and Mines (ITM) and within 15 days of its filing, the Ministry of Labour will decide whether the collective agreement is accepted or not. The decision is notified to all interested parties and published in Mémorial B (Official Journal). If a collective agreement concerns a particular sector, a sector or several undertakings, the working and employment conditions in each undertaking may be determined by an agreement between the undertaking and its social partners. In this case, the collective agreement lays down the conditions for the application of the conditions of employment and employment in each undertaking.

The request for collective bargaining must be communicated in writing: a collective agreement is negotiated by a bargaining committee composed of the following groups: the collective agreement and the related collective agreements must indicate that Luxembourg also has a national minimum wage which provides, in addition to the fixing of a minimum principle, for a higher rate of 20% for more qualified workers. Initially, inter-professional agreements only apply to companies belonging to the employers` organisations that have signed the agreement, but which are often extended by the government to the whole sector – about 25 are currently being extended in this way. .

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