Substitute salaries for self-employed workersA minister never acts alone, but only in accordance with the government, says Dan Kersch

RTL Today
Minister of Labour Dan Kersch reacted to statements made by the president of the Union of Luxembourg Enterprises (UEL), who speculated that Lex Delles had provided aid that Kersch did not want to provide himself.

Kersch welcomes the fact that the UEL accepts the raise of the "aid for uncovered costs" as the de facto introduction of a "substitute salary" for self-employed workers.

The idea of a substitute salary had been suggested by Kersch himself on 11 February. After discussions with Minister for Small and Medium-Sized Enterprises Lex Delles however, the idea was dropped.

One of the reasons was a debate between Kersch and Michel Reckinger, the president of the UEL, regarding the funding of such a salary. While Kersch and the Independent Luxembourg Trade Union Confederation (OGBL) favoured funding through the Mutual Fund of Employers, the UEL wanted to use the Employment Fund.

According to Kersch, this was a very clear signal by Reckinger that it was out of the question for the UEL that a mutually supportive group of all enterprises, including banks, insurance companies, industry, and real estate agencies, would participate in the funding of a substitute salary.

The OGBL already criticised the UEL's position last week, pointing out that the Employment Fund was itself funded through the solidarity tax and its intended use was to finance measures which support keeping people employed.

Reckinger later stated in an RTL interview that Delles had made possible what Kersch had refused to do. The politician from the Luxembourg Socialist Workers' Party (LSAP) rejects this accusation, describing it as a "completely backwards" statement. No minister acts alone, Kersch stressed, the government always acts as a union.

The UEL's acceptance of the new measure also means that the demand by the Federation of Artisans (FDA) for an individual substitute salary is now off the table. Kersch stated that he is well aware that Reckinger "is not happy" with Kersch himself, members of the LSAP, civil servants, or employees receiving the minimum wage for that matter. However, the Minister added, it seemed to him as if Reckinger was "only happy with himself".

Meanwhile, the FDA made it clear that they are not too pleased with the latest development, pointing out that the new measure did nothing to alleviate the structural disadvantages of self-employed workers, particularly in the domain of social security. As such, the Federation still stands by its demand for a substitute salary.

Self-employed workers merely had a perspective for the next few months, but not in the long-term, stressed the FDA in a press release.

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