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 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 around a third 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 both at national and European level. There are also other important union groupings in finance, railways 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. Luxembourg is also one of two EU states where pay goes up automatically in line with inflation.

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Workplace Representation

There is now only one body, the employee delegation, which represents employees at the workplace. Unions have important rights in this structure and many 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 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 employee delegation, now the only form of statutory employee representation at the workplace. (The joint company committee, a works council type body, which in the past existed alongside the employee delegation, has been abolished.) The delegate for safety and health, an individual employee chosen by the employee delegation, has specific health and safety responsibilities.

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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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