Employment Minister Georges Engel (LSAP/S&D) is looking into Luxembourg potentially adopting a 38-hour workweek so the country can remain competitive and continue attracting the foreign workforce it needs.
Two weeks ago, the Luxembourgish Employment Ministry received the results of its commissioned study on the effects of reducing working hours – a study designed to gather objective facts amid a debate that has become somewhat emotional both nationally and throughout the bloc.
While Engel announced Monday that the study’s results were “ambiguous”, a shortened working week could nevertheless be considered.
In Luxembourg, the average working week is 40 hours, with a maximum of 48 hours allowed by law. The EU average across all member states is 37.1 hours.
Productivity would not necessarily be reduced due to fewer working hours with full wage compensation, meaning the switch would not require government subsidies for most sectors.
The measure would also help the government save money, with numerous studies showing that reducing working hours leads to less sick leave, burnout and bouts of depression while improving overall well-being.
The minister said that Luxembourg’s attractiveness to foreign workers essentially relies on two pillars: salaries and working conditions.
However, with neighbouring regions having gradually increased salaries to retain workers, the Grand Duchy, where working hours are currently higher, could regain its edge by adopting a reduced working week.
Legislation change is not yet of the hour. However, as Engel said, he would first like to have several companies implement pilot programmes to gather data on the matter.
Luxembourg attracts around 210,000 workers who commute from Belgium, Germany and France daily, which is around 44% of its total labour force.
However, recent estimates suggest that the country would need to attract another 270.000 people by 2030.
(Luka Krauss| EURACTIV.com)
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