The Federation of Craftspeople on Tuesday called for the abolition of the qualified social minimum wage and rejected any further politically driven increases to the unskilled minimum wage. Unsurprisingly, unions hold a different view from employers when it comes to the minimum wage.
Both the Independent Luxembourg Trade Union Confederation (OGBL) and the Luxembourg Confederation of Christian Trade Unions (LCGB) have long called for a 10% increase. They say the qualified minimum wage must not be scrapped, arguing that it would devalue professional qualifications, send the wrong signal to young people entering skilled trades, and undermine the principle that workers should be able to earn a decent living from their wages.
At the same time, a recent proposal by Labour Minister Marc Spautz to use median income as a reference point for calculating the minimum wage has been welcomed by trade unions.
Employers’ criticism of the minimum wage is not new, so unions were not entirely surprised by the latest remarks. Even the more combative tone used by the Federation of Craftspeople was something to which they were accustomed, they said.
However, the demand to abolish the qualified minimum wage had not been heard before and was difficult to understand, union representatives said.
LCGB president Patrick Dury, himself a trained electrician, pointed out that young people invest time and effort in training and qualifications. If someone completes an apprenticeship and obtains a professional diploma only to be told that the qualified minimum wage is being abolished, he said, it would be deeply discouraging and send the wrong signal to those considering a career in the skilled trades.
In Dury’s view, such proposals ultimately do the employers’ side no favours.
He also questioned the recurring argument that stagnating productivity means businesses cannot cope with higher minimum wages. He noted that despite Luxembourg’s minimum wage, the automatic wage indexation system, and collective agreements, the country’s economy has continued to perform well and develop both socially and economically.
The real challenge, he said, is finding appropriate responses to evolving economic questions rather than repeatedly blaming wage levels.
A similar view was expressed by Nora Back. Speaking to RTL, the OGBL president argued that Luxembourg needs a strong minimum wage, which also implies maintaining a strong qualified minimum wage. Proposals to compensate low-income workers through tax credits instead of wages were also criticised by the unions.
Back said the idea that people should not necessarily be able to live from their wages, with the state stepping in to make up the difference, is unacceptable. The purpose of wages, she stressed, is to ensure that work allows people to make ends meet and avoid living close to the poverty threshold.
By contrast, the Spautz proposal to base the minimum wage on 60% of the median income has been received positively by unions. According to Back, this would roughly correspond to the 10% increase they have been calling for and would represent a serious structural adjustment that is now urgently needed.
For the unskilled minimum wage, this could amount to around €300 more per month.
Union representatives say the issue should now be discussed further with Spautz. The next meeting between Spautz and the social partners is expected to take place on 25 March, although it remains unclear whether employers, unions, and the government will all sit down together.
It is also not yet certain whether the minimum wage will already be on the agenda, as Spautz first intends to present the matter to the Government Council.
