Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LU-2020-21/1100 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Open ended, started on 20 May 2020|
|Type||Non-binding recommendations or other texts|
Promoting the economic, labour market and social recovery
|Author||Patrick Thill (LISER) and Eurofound|
|Measure added||11 September 2020 (updated 07 May 2021)|
In order prepare the crisis' recovery and avoid a social crisis, the representative trade union OGBL put forward a list of non-binding recommendations that emphasise the necessity to support not only the economy and the enterprises, but also wage earners and households to limit major income losses. The trade union underlines the importance to reinforce economic stimulus policies aiming to increase the demand of households, as well as to avoid austerity policies. Measures also emphasise a stabilising effect of social security systems and strong labour legislation. It opposes a privatisation of state services.
The recommendations of the OGBL cover five types of measures:
1. The exit of the crisis So as to avoid situations of social precariousness and reinforce employment, all crisis-linked derogations from labour law should be stopped. Other recommendations concern the maintaining of the extension of periods of absence due to incapacity of work, employment (leave for family reasons, teleworking for cross border workers, …). Also, specific attention should be paid to gender equity in sectors that are specifically hit by the crisis.
2. Employment retention Employment retention instruments are aimed to avoid mass unemployment: among them figure the extension of short-time work, access to the minimum social income and its increase. In addition, deadlines for social plans and the reinforcement of social dialogue in enterprises should be considered.
3. The purchasing power of households OGBL put forward to increase the purchasing power of households by re-examining and increase social benefits such as the indexation of family allowances, the increase of access and amount of rent subsidies, tax credits for vulnerable populations, and the increase of the minimum income.
4. The re-examination of tax measures OGBL considers that the government must avoid any tax measures that increase the burden on households or reduce the premiums of employees.
5. Financing the crisis OGBL is not opposed to a new state loan to finance the crisis. Yet, it favours a longer suspension of the budgetary rules at EU level and the creation of a national solidarity fund. Another important point is that the government should not touch the pension fund and pay attention to the financing of the health system.
|Applies to all workers||Applies to all businesses||Applies to all citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||No involvement|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
The recommendations were designed and developed by the OGBL.
Eurofound (2020), Trade union OGBL's priority proposals for the recovery, measure LU-2020-21/1100 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2020-21_1100.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.