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26 September 2018
On 12 July 2018 the Luxembourg Bankers' Association (ABBL) signed the new Collective Bargaining Agreement (CBA) for Bank Employees 2018-2020 with the Luxembourg Association of Bank and Insurance Employees and the trade unions representative of the financial sector. Given the number of changes and their level of impact, the CBA will be introduced gradually over the next three years.
The CBA's main features are structured around the following themes.
As of 2020, employee roles will be classified into four groups (A to D). According to the ABBL, each bank will classify its own roles. However, the same methodology will be applied, which recommends using the following objective, transparent criteria as defined by the CBA:
All employees subject to the CBA will be involved in this process and have their role assigned to one of the four new groups after points have been allocated according to their seniority. A salary reassessment and adjustment will take place if the employee's remuneration is below the minimum salary for the group in which their role has been classified.
A new remuneration system will apply from 2019. According to the ABBL, the existing seniority bonuses will be increased according to a scale set by the start of service and included in employees' salaries. Loyalty and length of service will be recognised via a new loyalty bonus (replacing the prime de conjuncture), given as a percentage of an employee's basic salary and paid with their salary in June of each year. An overall budget of 1% will be made available for salary increases to recognise the acquisition and implementation of skills. The minimum salaries for each classification will be increased in 2019 and from 1 January 2020 for the new groups A to D.
The CBA stipulates that if an employer has introduced a working time plan or flexible working time system, the reference period may be up to four months, compared with six months under the old CBA. All other benefits continue to apply (eg, 50% extra to be paid per hour for overtime, compared with 40% as stipulated by law. Further, the number of days off and number of extraordinary days' leave is more generous than under the law). One extra half-day's leave is granted to employees aged 45 years and older.
The training budget will increase to 1.5% as of 2019. The new CBA gives all workers the right to have a personal development plan and access to training.
The new CBA stipulates the need to introduce measures to prevent psycho-social risks. It also stipulates that banks must make a commitment to working with staff delegations to improve measures connected to corporate social responsibility (ie, promoting wellbeing in the workplace, flexible working time, teleworking, sabbaticals, the right to disconnect and promoting diversity).
For further information on this topic please contact Guy Castegnaro or Ariane Claverie at Castegnaro by telephone (+352 26 86 82 1) or email (firstname.lastname@example.org or email@example.com). The Castegnaro website can be accessed at www.castegnaro.lu.
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