Tripartite collapses after unions refuse to budge

Luxembourg's leader has postponed a final tripartite meeting planned for Friday after workers' unions refused to attend in protest.

Jean-Claude Juncker said that he regretted that it was not possible to unite social partners at the meeting.

Earlier this week, workers' unions LCGB, OGBL-L and CGFP threatened to boycott the crucial meeting in protest against employer demands. It said that it would only attend if the UEL, a body representing employers, agreed to compromise on its proposals before Friday.

The unions believe that, if implemented, UEL's proposals could destroy the Luxembourg social model.

The unions stood by their threat and, in an email addressed to the Prime Minister on Thursday, they confirmed their intention to boycott the talks.

Mr Juncker said that he would not give up and that previous tripartite discussions would allow the government to identify solutions for resolving the problems currently being experienced in Luxembourg.

On this basis the government would act alone in taking the necessary decisions in the interest of the country. An announcement on the matter is expected to be made on Friday at midday.

The tripartite talks, uniting workers' unions, employer representatives and government officials in joint negotiations, date back to 1977. They were first set up to find a just solution in moments of the crisis.

The collapse of the talks have drawn mixed reactions among politicians. The DP blamed the government for failing to better prepare for the negotiations. The CSV party was critical of the three workers' unions, calling their actions “difficult to justify” given current financial instability in Luxembourg.