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Luxembourg  Luxembourg

Key Facts

Population524,853
Collective Bargaining Coverage 50%
Proportion of Employees in Unions 41%
Principal Level of Collective Bargaining

Industry and company (varies with sector)

Workplace Representation

works council/employee delegates (with employee delegates planned to replace the works council in 2013)

Board-level Representation

yes: state-owned and private companies

Company Board Structure

monistic

Sources: see individual country sections; where a range of figures has been quoted, the lower number has been taken

Trade Unions

Union density in Luxembourg is relatively high at around 40% of the workforce. There are two main union confederations, OGB-L and LCCB, with affiliates across the bulk of the economy. The two have ideological differences, although they co-operate fairly closely both at national and European level. There are also other important union groupings in the specific sectors of finance and the public service and one of the public sector confederations, the CGFP is, like the OGB-L and LCCB, represented in the national tripartite structures.

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Collective Bargaining

The key levels of bargaining are at industry and company level, and the relative balance between the two varies from industry to industry. There are precise rules on what must be included in agreements and who can sign them, although in practice not all the agreements include all the issues. There is also pressure to reach a settlement without conflict, with conciliation built in.

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Workplace Representation

There are currently two main bodies representing employees at the workplace, one dealing with employees’ day-to-day concerns and the other – in larger workplaces only – a joint employer/employee body intended to improve industrial relations in the workplace. Unions have important rights in this structure and the majority of employee representatives are union members. However, this whole structure is set to change, with legislation abolishing the joint body and giving greater powers to employee representatives being introduced in 2013.

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Board-level Representation

Companies with more than 1,000 employees or with a substantial state involvement, either through ownership or state aid, must have employee representatives at board level. They generally have a third of the seats.

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European-level Representation

European representatives from Luxembourg are chosen by the employee delegations. In most cases they must be employees, but this is not the case for the members of an SNB for a European Company, where union officials can also be chosen.

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Health and Safety Representation

Health and safety is one of the issues covered by the two main forms of employee representation in Luxembourg – the employee delegation and the joint company committee, a works council type body on which both employees and the employer are represented. The employee delegate for safety, an individual employee chosen by the employee delegation, has the most specific health and safety responsibilities. But some health and safety issues are decided by the joint company committee.

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Financial Participation

In Luxembourg, no particular legal structures to facilitate or regulate the introduction of profit-sharing and employee share ownership schemes or tax incentives exist. Nevertheless, different forms of employee financial participation are common in practice.

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