Luxembourg’s two largest trade unions, the OGBL and LCGB, have not yet responded to invitations to meet with the government next month, Prime Minister Luc Frieden said on Friday.

“Our hand is always outstretched for social dialogue and will remain so,” Frieden said of the proposed meeting on 9 July to discuss reforms to pensions and Sunday trading hours which have been opposed by the unions.

The OGBL and LCGB have called for a joint demonstration on 28 June to protest against the government’s planned labour and social policy reforms.

“From my point of view, I have always dealt with all union presidents in a very friendly tone,” Frieden said at a press conference following a meeting of the government council. He added that dialogue should be sought with all social partners in order to make progress, while at the same time ensuring that the coalition’s programme for government is implemented.

Topics include pension reform, Sunday working and collective agreements. The first results of the pension debate are to be presented by Social Security Minister Martine Deprez at the beginning of July, Frieden said on Friday – adding that he plans to discuss all issues with the social partners on 9 July.

The government is not planning to hold a national referendum on changes to the pension system, Frieden said, adding that the “technical complexity” of the issue would rule out having a vote.

Pension reform is being carried out to ensure that Luxembourg’s pension system continues to exist into the future, Frieden said. “We need to look at what is happening abroad. In Luxembourg, people retire at around 60 on average – that’s the earliest retirement age in the entire European Union and the OECD. Think about that.”

“We also see that economic growth in the past three years has been lower than before – and is therefore no longer sufficient to support our current social security system as usual,” the prime minister said.

Meanwhile, union claims that Sunday working hours will be extended under government plans are wrong, Frieden said.

Currently, retail workers are not allowed to work more than four hours on Sundays. If the new law is approved, they will be allowed to work up to eight hours, but will not be forced to, Frieden stressed.

OGBL President Nora Back (right) and LCGB President Patrick Dury (left) © Photo credit: Chris Karaba

Parliament will have to make adjustments to the legislative project following opposition to the draft bill by the Council of State, Frieden said, saying this is part of the legislative procedure.

Asked where he will be on the day of the planned strike action by unions, the prime minister said: “It’s a Saturday, and I’ll probably go for a walk that day, because I’m a big nature lover.”

Luxembourg position on Middle East

Before the unions’ day of action, Frieden has “intensive weeks” coming up abroad. Next week, he should take part in the conference on the implementation of a two-state solution for Israel and Palestine in New York together with Foreign Minister Xavier Bettel (DP). Luxembourg is in favour of such a solution, ‘’because Luxembourg is a friend of Israel and understands the concerns of the Palestinians’’.

However, in view of the escalation in the conflict between Israel and Iran, French President Emmanuel Macron announced on Friday evening that the planned UN conference on the two-state solution would be postponed. ‘’A new date will be set in the coming days in consultation with the political players in the region, particularly Saudi Arabia,’’ said Macron. The conference was originally due to take place in New York on Tuesday.

Two states are needed in order to achieve peace in the region and guarantee both the security of Israel and to give the Palestinian people a country they can develop in peace and freedom, said the Luxembourgish prime minister this Friday afternoon.

He called on Israel and Iran to abide by international law and to strive for de-escalation after Israel attacked Iran’s nuclear infrastructure. Foreign Minister Bettel expressed his “deep concern about the new escalation of violence in the Middle East” earlier on Friday.

On 25 June, Bettel and Frieden will attend the Nato summit in The Hague with Defence Minister Yuriko Backes. The government is ready to commit to additional security and defence spending in consensus with the other member states, Frieden said.

German border checks

Frieden also announced on Friday that he will meet German Chancellor Friedrich Merz in Berlin after the two summits and before the summer. “Germany is the largest economy in Europe. The Luxembourg economy is very closely linked to the German economy. It is therefore good that we can hold these talks at the highest level and in close coordination with the new Chancellor,” said the Prime Minister.

On a closely related topic, he also spoke about the 40th anniversary of the Schengen Agreement, which will be celebrated this Saturday. For him, Schengen represents “freedom and security” and it is an accord that must be continually worked on.

He also expressed his conviction that a bilateral agreement between Germany and Luxembourg is possible to avoid border controls and make everyday life easier for cross-border commuters. “They are welcome here, we need them and they need our economic area to be able to work. We are confident that together with our European partners, we will be able to preserve this beautiful common heritage,” said Frieden.

(This article was originally published by the Luxemburger Wort. AI translated, with editing and adaptation by Alex Stevensson.)