Indexation postponed: on the eve of May 1st, ALEBA takes a stand

The government’s proposal, supported by two other trade unions, undermines a real social benefit that is essential not only to resident and cross-border workers, but also for the whole economy of the country, guaranteeing social peace and purchasing power: the automatic indexation of wages.

Although we deplore the fact that we were not invited to the tripartite on a subject that concerns ALL employees, ALEBA, representing a very important part of the Luxembourg economy, would like to express its point of view and firmly oppose any manipulation of the index.

ALEBA obviously welcomes the tax credit initiative for employees, but it remains largely insufficient and, furthermore limited in time, as opposed to a permanent salary increase.

Tax credit staggering, and the limit of 100,000.00 euros of annual taxable income are also questionable.

This tax credit represents a unique and temporary measure that can only help some employees over a very limited period, while freezing salaries until a potential indexation in 2023.

Freezing salaries means increasing the gap between social classes, decreasing purchasing power, slowing down the economy and therefore increasing the risk of recession.

Instead, ALEBA would rather never freeze the index to tackle inflation, especially for small salaries, but would prefer to adapt its value according to the different salary brackets: all this to always preserve for all, a purchasing power on essential expenses, without necessarily financing luxury expenses.

Maintaining the index is thus a guarantee of social peace and keeps the Grand Duchy of Luxembourg among the world’s top countries where life is good, with a real middle class and true purchasing power.

 

Roberto MENDOLIA
Président de l’ALEBA