Luxembourg

Will indexation be the number one Luxembourg elections issue?

With the official Luxembourg election campaign not yet started, it has now emerged that there is one subject that appears to be preoccupying parties and could become the number one election issue: wage indexation.

12.09.2013

(ADW) With the official Luxembourg election campaign not yet started, it has now emerged that there is one subject that appears to be preoccupying parties and could become the number one election issue: wage indexation.

Ahead of a visit by Prime Minister Jean-Claude Juncker to the concrete company “Chaux de Contern” the CEO and FEDIL President Robert Dennewald stated that a capped indexation could be a temporary solution. However Dennewald, and industry in general, believe that the abolition of the automatic wage adjustment is economically the way forward.

The CGFP (General Confederation of Public Services) immediately responded to this statement: "Company CEOs showing their true intentions, namely the complete abolition of the index mechanism, is a perverse idea which we are totally opposed to".

What political parties say

What do the political parties say about indexation? Most are still holding back with their choice of programmes being adopted in the coming days.

However Juncker already announced in parliament earlier this year that the CSV were looking at a capped indexation choice for their manifesto programme. However at the time the elections were not looming ahead as they are now.

LSAP President Alex Bodry had indicated a returned to the traditional indexation model after 2014, a long time before the elections were planned.