At a recent roundtable discussion in Luxembourg, trade unions stated they do not seek to stir controversy or attack the audit firms directly, but feel compelled to draw urgent attention to the working conditions experienced by employees in the so-called Big Four consulting and audit firms: PwC, Deloitte, KPMG, and EY.
Union representatives argued that, despite the enormous financial success of these companies, staff cuts have become commonplace, employees are exposed to constant pressure, and breaches of labour law occur far too often.
Angélique Lazzara, Secretary at the Independent Luxembourg Trade Union Confederation (OGBL), noted that these profits are repeatedly celebrated as new records year after year, even as working conditions deteriorate.
According to figures from the National Institute of Statistics and Economic Studies (STATEC) referenced by Lazzara, the number of employees in Luxembourg’s audit firms has decreased by 8% over the past two years.
Deloitte and KPMG have seen reductions of 6% to 8%, while PwC’s workforce has shrunk by 14%, which equals to a total loss of 530 jobs across the sector, according to Lazzara.
Despite these job losses, reported revenues at the Big Four remain at an all-time high: PwC reported €765 million, KPMG €373 million, and Deloitte €535 million.
Lazzara questioned how profits keep reaching such levels despite staff numbers dropping, pressure increasing, and more work being outsourced.
Maria-Helena Macedo, a member of the Luxembourg Confederation of Christian Trade Unions (LCGB) executive board, added that her union is receiving a growing number of reports of people who previously worked for the Big Four and were dismissed under questionable circumstances.
She also noted an increase in dismissals after 26 weeks of sick leave and said employees are being asked to show ever more flexibility.
While LCGB understands that companies must adapt to the demands of their clients and to changes in the market, Macedo said, flexibility should not mean being constantly available, working under permanent pressure, or having the balance between work and private life permanently undermined.
David Angel, also of the OGBL executive board, emphasised that the Big Four are not ordinary companies, particularly due to the unique nature of the assignments entrusted to them.
He explained that legally-mandated audits account for around three-quarters, or perhaps even more, of all audit missions carried out in Luxembourg.
However, it should not be forgotten that the Big Four are, in one way or another, also "represented in political institutions" by individuals who previously worked for these firms or currently represent them.
This is true in various institutions, and some coalition agreements are even drafted with the involvement of some Big Four firms, he concluded.
The unions are officially calling for an independent investigation to clarify the reasons behind the declining employment figures.
They also urge authorities to ensure that no company circumvents the rules regarding dismissals or collective redundancies. Employees are advised to seek help from unions early, ideally before they are dismissed.
