Luxembourg - Landmark deal to expand collective bargaining coverage - August 31, 2026

Government, employers and trade unions reached an agreement to sharply expand the share of employees covered by collective agreements, from the current 50-55% to a target of 80%. Union confederation OGBL hailed the accord as "a major social breakthrough," saying it helps defuse tensions that had fuelled labour conflict since autumn 2024. The agreement transposes an EU directive on collective bargaining and adequate minimum wages, and is designed to strengthen trade unions’ bargaining position by giving employers stronger incentives to negotiate sector-wide agreements. Unions described the outcome as validation of months of pressure on the Government over the state of social dialogue.

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