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Luxembourg  Luxembourg

Key Facts

Population502,000
Collective Bargaining Coverage 60%
Proportion of Employees in Unions 37%
Principal Level of Collective Bargaining

Industry and company (varies with sector)

Workplace Representation

works council

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 Union

Union density in Luxembourg is relatively high at around 40% of the workforce, although the figures are not precise. There are two main union confederations, OGB-L and LCCB, which are both represented in the national tripartite structures. The two have ideological differences, although they co-operate fairly closely. There are also other important union groupings in the specific sectors of finance and the public service.

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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. There is also pressure to reach a settlement without conflict.

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Workplace Representation

There are 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.

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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

A mixed works council must be set up in private sector undertakings with 150 workers or more. This is a joint staff general representative body with decision-making powers in relation to occupational safety measures.

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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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