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Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Luxembourg (RATIFICATION: 1958)

The Committee notes the adoption of the Labour Code, Act of 31 July 2006, which, inter alia, repealed the Act of 12 March 1973 on the reform of the minimum social wage, as amended.

Article 1 of the Convention. Minimum wage-fixing machinery and minimum wage rates. The Committee notes that, in absolute terms, the minimum wage rate in Luxembourg is the highest among those Member States of the European Union which have national legislation establishing a legal minimum wage. However, as emphasized in Part III of the Minimum Wage-Fixing Machinery Recommendation, 1928 (No. 30), which supplements the Convention, “for the purpose of determining the minimum rates of wages to be fixed, the wage-fixing body should in any case take account of the necessity of enabling the workers concerned to maintain a suitable standard of living”. In this regard, the Committee notes that, in its conclusions of December 2007, the European Committee of Social Rights (ECSR) pointed out that in Luxembourg the minimum wage corresponded to 54.8 per cent of the average national wage. Where the minimum wage is between 60 and 50 per cent of the average national wage, this Committee invites the State concerned to demonstrate that this wage enables a decent standard of living to be achieved, for example by supplying detailed information on the cost of living. In its conclusions, the ECSR indicated that the Government of Luxembourg had not provided any information of this kind. Moreover, the Committee notes that, according to the information published by Eurostat in June 2007 (press release 85/2007) the minimum wage in Luxembourg represented
51 per cent of the average gross wage for industry and services in 2005. In the light of the above, the Committee requests the Government to supply all available information showing to what extent the amount of the minimum social wage enables a decent standard of living to be achieved for the workers concerned.

Article 3, paragraph 2(2). Machinery for revising the minimum wage rate – participation of employers’ and workers’ organizations in equal numbers and on equal terms. The Committee notes that, in accordance with section L.222-2 of the Labour Code, the minimum social wage rate is fixed by law and that for this purpose the Government submits a report every two years to the Chamber of Deputies on changes in general economic conditions and income, together with a draft law, if applicable, raising the minimum social wage rate. It also notes section L.222-3 of the Labour Code, which, without prejudice to the abovementioned provisions, provides for an adjustment of the minimum wage rate in relation to the weighted consumer price index. The Committee notes the Government’s report on changes in general economic conditions and income, which was presented to the Chamber of Deputies on 12 November 2004. It notes that the Government regularly undertakes a study of changes in the minimum wage rate in relation to changes in the average hourly wage of the reference group and then proposes to the Chamber of Deputies a corresponding readjustment of the minimum wage. It notes that the minimum wage was thus adjusted by 2 per cent as from
1 January 2005 and that, since 1 January 2007, it stands at €1,570 for unskilled workers and €1,884 for skilled workers. However, the Committee draws the Government’s attention to the need to consult employers’ and workers’ organizations fully and on equal terms at every stage of the process of fixing and adjusting minimum wages. As it emphasized in its 1992 General Survey on minimum wages (paragraph 425), Governments are urged “to take the necessary action to ensure that the consultation and participation of the social partners in the establishment and modification of minimum wage machinery or its operation is useful and effective, i.e. that these representatives are genuinely given an opportunity to express their views, in full knowledge of the facts, that their views are taken into consideration at the appropriate time, and that the consultation and participation are on an equal footing”. The Committee therefore requests the Government to supply information on the way in which representative employers’ and workers’ organizations are associated in the process of drawing up a report on changes in general economic conditions and income and proposing any adjustments to the minimum social wage rate to the Chamber of Deputies.

Article 3, paragraph 2(3). Minimum wage rates for young workers. The Committee notes with interest that the Act of 22 December 2000 abolished, in the context of various abatements for young persons under 18 years of age, the 15–16 age category, and raised the percentage of the adult minimum wage applicable to the 15–17 age group. It notes that, under section L.222-5 of the Labour Code, the minimum wage is fixed at 80 per cent of the adult minimum wage for young workers in the 17–18 age group and 75 per cent of this amount for young workers in the 15–17 age group. It also notes that a draft law on compulsory schooling aims to increase the age of completion of compulsory schooling from 15 to 16 years and that, according to the indications in the Government’s report, it is likely that the question of abatements according to age will also be raised in this context. The Committee requests the Government to continue providing information on progress made on the procedure for adoption of the draft law on compulsory schooling and on any reforms of the system of abatements applied to the adult minimum wage for young workers concerned.

Article 5 and Part V of the report form. Practical application. The Committee notes that, according to the 2004 report on changes in general economic conditions and income, referred to above, the proportion of workers earning the minimum wage increased from 14 per cent in 1993 to 18 per cent in 2004. It also notes that the sectors containing the highest proportion of workers earning the minimum wage are, respectively, trade, catering and accommodation (31 per cent of men and 49 per cent of women) and agriculture (40 per cent of men and 30 per cent of women). Furthermore, it notes that the inspectorate of labour and mines received 446 complaints relating to wages in 2005. The Committee requests the Government to continue supplying information on the application of the Convention in practice. In particular, it requests the Government to indicate whether it has information on the reasons for the increase in the proportion of workers earning the minimum wage and, if so, to provide the Office with information on this subject. The Government is also invited to supply more detailed information on the results of the activities of the inspectorate of labour and mines, stating what proportion of the 446 complaints referred to by the Government relates to non-observance of the legal provisions on minimum wages, trends in the number of complaints in recent years, and the measures taken by the inspectorate of labour and mines to put an end to the reported infringements. The Committee also requests the Government to supply information on any difficulties encountered in the application of the Convention, for example on cases in which employees face difficulties in being recognized as skilled workers and thereby benefiting from a higher minimum social wage rate.

Finally, the Committee takes this opportunity to draw the Government’s attention to the conclusions adopted by the ILO Governing Body on the basis of the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Governing Body considered that Convention No. 26 was one of the instruments which were still relevant in certain respects, even though they were no longer fully up to date. The Committee therefore suggests that the Government examine the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which represents a degree of progress in comparison with previous instruments concerning the fixing of a minimum wage, for example by providing for a wider scope, the setting up of a general minimum wage system and, finally, the adoption of certain criteria for determining minimum wage levels. The ratification of Convention No. 131 appears all the more desirable in as much as the legislation of Luxembourg with respect to minimum wages appears largely to conform to the requirements of this instrument. The Committee requests the Government to keep the Office informed of any decision taken or contemplated on this subject.