Following a series of bilateral meetings between the Prime Minister, trade unions, and employer representatives, Luc Frieden briefed the press on Wednesday afternoon.
After announcing the June tripartite talks last week, concrete preparations have been underway since Wednesday. Throughout the day, the government met with social partners in bilateral rounds to discuss the agenda for the tripartite talks. At 4pm, the Prime Minister held a press briefing in the courtyard in front of the Ministry of State.
Frieden appeared generally satisfied, describing the talks as "very good and constructive in terms of form." He was not euphoric, however, although such a tone would perhaps not have been entirely appropriate under the circumstances. The Prime Minister again outlined the international context, pointing to the war in Iran, which is driving up energy prices. He also defended the timing of the tripartite talks, stating that they had been demanded for some time by many sides, including the political opposition, as well as by trade unions and the employers' association.
Frieden explained that the tripartite meeting had been convened at this point because it is now clearer how inflation is evolving. He referred to announcements made by the National Institute of Statistics and Economic Studies (STATEC) on Wednesday indicating that more than one wage indexation could be triggered over the next 12 to 13 months. As such, Frieden believes the tripartite talks are taking place "at the right time, the time that we also provided for in the coalition agreement."
Regarding the content of the talks, Frieden emphasised that the government first listened to the social partners to understand what they wished to have on the agenda. Opinions diverge considerably. The Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB) are demanding that, alongside purchasing power and job security, housing and healthcare should also be discussed. The Luxembourg Employers' Association (UEL) and the General Confederation of the Civil Service (CGFP), meanwhile, would prefer a tighter agenda focusing more narrowly on the energy issue.
On Wednesday morning, shortly after the meeting between employers and the government concluded, RTL asked UEL president Michel Reckinger about the demands of the OGBL and LCGB. Reckinger replied that the UEL has made it very clear that it would like the tripartite talks to focus on subjects appropriate to the framework. In the UEL's view, these are not structural problems but rather current cyclical challenges, chief among them competitiveness. While Reckinger acknowledged that various issues raised by the unions are certainly relevant, he stressed that for the UEL, the talks should focus primarily on energy, inflation, and wage indexation.
Prime Minister Frieden did not indicate which direction he is leaning. He said that the wishes of both sides would be taken to the Government Council on Friday and that, depending on the outcome, discussions might need to continue over the weekend. He was optimistic, however, and noted that it was clear to all partners that not all of the country's problems could be solved in the tripartite framework.
The next meeting is scheduled for Tuesday, 12 May, and will focus on assessing the current situation of businesses as well as private households. A range of data and statistics, primarily from STATEC, will also be presented. This meeting will serve as an initial three-way round preparing for the actual tripartite talks, which begin on 2 June. The CGFP, incidentally, has stated that it would have preferred the gap between the two dates not to be so long.
