As long ago as 1998, the Luxembourg Government issued a National Action Plan on jobs, following this up with new rules on collective agreements in 2004. However, a 2012 study on the role of sectoral and company collective bargaining found that the National Action Plan is often ignored. The study examined four areas (working time, employment, training, and gender equality). Implementation of national regulations was found to differ considerably between sectors.
Background
In 1998, the Government of Luxembourg, after consultation with the social partners, issued a National Action Plan for Employment (LU9805157F). Its aim was to maintain job levels and fight unemployment. As a consequence, Article 20(4) of the 2004 Collective Employment Relations Act (in French, 133Kb PDF) states that collective agreements must include provisions on working time, employment, training and gender equality.
A study (in French, 2.46Mb PDF) published by the social science research institute CEPS/INSTEAD in 2012 analyses the impact of the 2004 Act on collective agreements conducted or amended in 2005 and 2006 across 18 sectors. In addition, chapters on employment and training in the study take into account 173 company agreements covering 124 businesses.
Working time issues
The 2004 Act obliges social partners to incorporate provisions on the organisation of working time in collective agreements. In particular, the provisions should include flexible working time arrangements. In spite of this statutory obligation, the CEPS study found that a third of the sectoral agreements did not include flexible working time arrangements.
According to the study, flexible arrangements where they were applied took three different forms.
In the first form, social partners could agree on a reference period for which working time would be calculated. Such provisions were found in 12 agreements with periods ranging from a month to a year.
To cope with flexible working time as a result of extended reference periods, work organisation plans were introduced into national law in 1999 and revised in 2002. Work organisation plans allow employers and employees the chance to see an overview of working time in the near future. In the second form of application of flexible arrangements, 10 of the agreements analysed included provisions on work organisation plans which fixed their minimum duration and the notice period. The minimum duration of the plans was fixed between one week and one month, and the notice period between five and 15 days.
In the final form, five agreements brought in flexible working hours.
Employment
Social dialogue on employment has two distinct aims:
- allowing companies to adapt to the economic climate;
- helping to maintain and create jobs.
Job creation is particularly important for vulnerable groups such as the oldest and youngest workers, and the long-term unemployed.
Nine (50%) of the sectoral agreements analysed made reference to the National Action Plan or discussed its key points on employment. The figure was roughly a third when it came to the company level – 55 agreements covering 43 companies analysed.
The most common issue included at both national and company levels were provisions covering mass redundancies or restructuring in case of economic difficulties. Nine sectoral agreements included sections on this subject, while it was included in 89 company agreements covering 81 businesses.
At sectoral level, 10 agreements dealt with employment for older workers through granting additional time off for holidays based on seniority. At company level there were 74 agreements of this type covering 73 businesses.
Provisions surrounding the issue of recruitment were more prominent at company level, covered by 80 agreements in 68 companies. Industry-wide bargaining resulted in seven agreements on recruitment. However, there was little reference to the recruitment of vulnerable groups in the deals.
Other topics covered in collective bargaining that related to the National Action Plan were early retirement and unpaid leave. Five sectoral agreements covered early retirement as did 58 company agreements across 47 enterprises. Unpaid leave was dealt with in four sectoral agreements, as well as 36 company level agreements covering 28 businesses.
Training provision
Although 16 of the sectoral agreements included sections on training, only five agreements refered to the National Action Plan or related legislation. Thirteen agreements introduced training as a means of facilitating the introduction or reintroduction of employees. At company level, reference to the National Action Plan in the context of training was even lower (16% of agreements and companies). However, most company agreements (in 90% of enterprises) included provisions on training.
The report found considerable diversity when it came to the provision of training. One sector’s agreement included no provision at all for training and another only one day of training leave. Others agreed wide-ranging training policies, while two sectors agreed on the creation of training institutes.
The study’s authors argued, however, that the number of company agreements that introduced comprehensive training provisions as foreseen by the National Action Plan was fairly limited.
Gender equality
The section on gender equality in the study provides a detailed insight into the extent to which the issue forms part of collective agreements at sectoral level. An analysis of 20 agreements covering 18 sectors found that 35% of the agreements included a reference to the National Action Plan and that 11 sectors had included a section on equal pay in their agreements.
Other important topics were gender-related provisions on training, which was included in 13 agreements, and access to employment and promotion, included in 11 agreements. Equal treatment more generally was included in seven agreements.
Protection of pregnant women and mothers was found to be neglected in industry-wide bargaining with only seven agreements covering maternity leave. One agreement included a section on parental leave, and one included rules on maternity and parental protection.
Again, the report stresses the considerable diversity on gender-related issues in sectoral collective bargaining.
Sebastian Schulze-Marmeling, IR Share