Ten companies to reduce working hours for employees

(CS) Ten companies in Luxembourg will reduce working hours for employees in September, as part of a cost cutting measure supported by the state.

Businesses based in the Grand Duchy finding themselves in financial difficulties can apply for the so-called “chômage partiel” scheme on a monthly basis. It allows them to reduce labour costs by cutting working hours. The state compensates workers for lost wages.

In August, 11 companies applied for the scheme with 10 of them granted their request. Out of a total of 1,273 people they employ, 589 will work reduced hours next month. The Luxembourg state is expected to spend 786,000 euros on the programme in September.

This marks a reduction compared to August, when 679 employees worked reduced hours, with the state budgeting 800,000 euros on the scheme.

Overall, the development of companies placing workers on partial unemployment has been positive since the start of the year, compared to the previous year. Throughout 2014, number reduced, but then further plummeted at the start of this year.

While there has been some fluctuation over the first half of 2015, overall the number of workers affected by the programme has reduced considerably, with the Economy Ministry earlier this year saying that this was a sign of economic recovery. 

The next meeting of the economic committee which evaluates “chômage partiel” applications is scheduled for September 25, when numbers for October will be announced.