Negotiating a collective labour agreement

Terminating a collective agreement

In order to partially or fully renegotiate a collective agreement, the social partners must request its termination. They must respect the notice period in the agreement. The 2014-2016 agreement for bank employees may be terminated by the means of a registered letter sent at the latest one month and at the earliest three months before its expiry.

The termination request must be notified in writing, and in so doing, the parties in effect request the opening of new negotiations. A copy of the termination request letter must be sent without delay to the ITM (Work and Mines Inspectorate).

The three trade unions representing bank employees generally meet before the termination request to establish a common list of demands. This is then submitted in writing to the ABBL (Luxembourg Bankers Association). Negotiations must begin at the latest six weeks before the expiration of the agreement or the provisions to be renegotiated.

The terminated collective agreement is no longer in force:

  • as soon as a new agreement enters into force;
  • at the latest, on the first day of the twelfth month following the termination request.

The negotiation committee

A collective agreement is negotiated by a negotiation committee consisting of:

  • the ABBL, which represents the employers;
  • trade unions recognised as being nationally or sectorally representative: ALEBA, OGBL-SBA and LCGB-Sesf.

Your contribution is important

(Survey done from May till June 2016)

Each collective agreement negotiation is in effect a complete review of employees’ work conditions. Every benefit employees enjoy today above that laid out in labour law can be called into question by the ABBL. This includes 8.5 extra days additional leave, the right to a 13th month bonus, the June bonus etc. These conditions are not a given, but result from the pressure exerted by the social partners on the ABBL during each discussion. To defend your rights and improve your working conditions, it is important that ALEBA hears your demands beforehand. ALEBA is the majority union in the financial sector, so it can sign a banking collective agreement on its own.

For more background about the collective agreement in general, see: http://www.guichet.public.lu/entreprises/fr