Belt-tightening plans for indebted LCGB union
The LCGB union has a deficit in their 2011 budget and 1.050 million euros of debt. To address this precarious financial situation, many belt-tightening plans are being put in place.
(ADW) The LCGB union has a deficit in their 2011 budget and 1.050 million euros of debt. To address this precarious financial situation, the executive committee made a decision to go-ahead with a restructuring plan involving capping salaries and staff reductions without layoffs, plus place two deputies on leave without pay. However contributions to the LCGB union will not be increased.
"We are trying to rectify the situation and efforts that have been requested are spread across all those concerned," stated union spokesman Patrick Dury, referring to the 54 union employees.
The debt of 1.05 million euros is explained by 500,000 euros in loans and about 400,000 euros in unpaid bills of which a large extent dates back to the social elections of 2008. A source of debt “leverage” for the union is the Training Centre Jean-Baptiste Rock. Since its closure, there has been an additional source of around 150,000 euros on the table.
"Nothing to hide or illegal"
"There is nothing to hide or illegal that has taken place. It's a financial situation that has developed negatively. We need to look at department by department and see where we can save, react, and make cuts, "announced President Robert Weber.
The Executive Committee and Central Committee have, therefore, decided on March 14 to impose a restructuring plan internally called "Horizon 2015" to redress the balance with the help of a trust company.
The restructuring plan focuses on three elements:
- 1. wage evolution will be restricted to average earnings of 60,000 euros per year.
- 2. Early retirement and departures will be applied gaining anticipated earnings of 245,000 euros a year for five years.
- 3. New internal regulations for employee will save an annual 67,000 euros.
Reallocation guarantee for two deputies
Patrick Dury described the solution of leave without pay for Marc Spautz and Ali Kaes, two longtime LCGB employees as a "perfect legal path" . The union decided to add a compensation leave policy that will be paid directly to gain 66% of their earnings. "These are the same guarantees for state employees ," Patrick Dury added.
Monday, July 11, all LCGB employees will convene for an information meeting. This was decided by the executive committee on Sunday.
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