As soon as the formation of the new government coalition between the CSV and the DP was announced, the OGBL warned of difficult times ahead, given the electoral platforms of these two parties. The coalition agreement finally reached between the Conservatives and the Liberals only confirmed the OGBL’s fears. Although the government’s program contains some positive elements, it remains vague on many issues and, above all, includes outright attacks on the areas that most affect the interests of employees, pensioners and their families.

Index

While the new government affirms that “the indexation system will be maintained in its current form,” it calls it into question in the very next sentence, announcing that a tripartite meeting will be convened if more than one indexation tranche is due in the course of a year. And the government certainly has no intention of convening a tripartite meeting to propose improvements, such as the payment of an early tranche. No, what is on the horizon are new attempts at manipulation. The OGBL will attend these tripartite meetings, but with a clear message: Hands off the index!

Pensions

Despite the fact that the pension system’s reserves stand at 23.5 billion euros and that insured persons have already suffered heavy losses as a result of the 2012 reform, the government program states that the current contribution rate will be “insufficient to pay annual pensions from 2027”. While the electoral programs were rather silent on this issue, it is now clear that the government is already preparing for further deterioration, even though it says it hopes to find a “consensus” with “civil society” on the matter. What is certain is that the OGBL will not be part of any “consensus” aimed at deteriorating the pension system, either for current or future pensioners. On the contrary, improvements are needed.

Working Time

Under the guise of promoting a better work-life balance, the government is announcing fundamental reforms that risk producing exactly the opposite: excessive flexibility, with employees having to be available at all times at the will of their employer. For example, it has been announced that restrictions on Sunday work will be abolished and even weekly rest periods will be reviewed. Even worse, the coalition agreement directly attacks the negotiation rights of the trade unions by providing for the automatic annualization of working time. Such flexible forms of work are possible today, but only within the framework of collective agreements (i.e. with compensation). And they must remain so. The OGBL is opposed to the replacement of collective agreements by company agreements without the involvement of trade unions. What is needed is a reduction of working time, not workers on call 24 hours a day.

Taxation

One of the few positive points in the coalition agreement is the adjustment of the tax scales on January 1, 2024, which will now apply to 4 index tranches instead of the 2.5 tranches originally planned. But despite the nice election promises, there are no plans to make this automatic in the future. And the government’s program makes no provision for introducing greater tax justice. On the contrary. It explicitly rejects raising taxes on high incomes, very large fortunes and inheritances. It announces an overall reduction in taxes on corporate profits, despite the fact that the previous government had already reduced them twice. By comparison, the announcements on possible tax relief for small and middle incomes, as well as for class 1a, remain very vague. It’s a tax program that will only deepen social inequalities. The OGBL will oppose it with all its strength.

Housing

Like the new government’s tax program, the measures announced to tackle the ongoing housing crisis are nothing more than gifts to real estate developers and investors. Instruments that have clearly failed to improve access to housing in the past (such as accelerated depreciation) are even being strengthened. Yet scientific studies have shown that such measures have only served to exacerbate inequalities in access to housing. With a policy that focuses solely on the housing supply side of the market, including the neglect of environmental considerations, the government is making it clear that its primary concern is to increase the profit margins of real estate developers. The OGBL is committed to a different policy – one that puts access to housing first.

Health and Social Security

With regard to health insurance, the government’s program already announces its intention to “clean up … the CNS’s health care missions”. However, if there were an imbalance in the CNS budget, the OGBL would not accept any deterioration in benefits as a result. This would jeopardize our solidarity-based system and ultimately lead to a two-tier healthcare system where only the richest could afford treatment. The OGBL is also opposed to the announced revision of the law on ambulatory care with the aim of privatizing the use of so-called heavy equipment, which would allow private actors to enrich themselves at the expense of our health system. Finally, the OGBL stresses the need to maintain the principle of the free choice of the payer within the CNS.

And the austerity tomorrow?

What the government program does not provide for is a policy of austerity. But … it provides for tax cuts, a plethora of subsidies and tax exemptions for companies, high public investment, while at the same time excluding any increase in public debt. The program does not include any new revenues for the state and excludes from the start any measures that would further tax the very high income earners and the very rich. This equation does not work, and is reminiscent of the austerity policies implemented in the period following the 2008 financial crisis. Without new revenues and additional debt, the government will have no choice but to attack public expenses. The coalition program does not mention this, but the logical consequence of the neoliberal program presented by the CSV/DP coalition will be to implement a policy of austerity.

It’s not too late to oppose this policy. For the moment, these are only declarations of intent, not concrete draft laws.

To oppose the announced attacks on our benefits, to avoid a policy of austerity, we need a strong opposition. We need a strong trade union. And only the OGBL, Luxembourg’s No. 1 union, is up to the challenge. It needs the support of all employees and pensioners.

Strengthen the union, strengthen the OGBL by voting for List 2, the OGBL list, in the Chamber of Employees (Chambre de Salariés – CSL) elections and in your company elections.