Work, pensions, housing: CSL director Sylvain Hoffmann welcomes anti-poverty plan but warns of pitfalls
Sylvain Hoffmann, Director of the Chamber of Employees (CSL), stated that relations with outgoing Labour Minister Georges Mischo were difficult, leading the CSL to issue numerous negative opinions on recent draft laws. He expressed hope that the new minister, Marc Spautz, would foster equal social dialogue and advance long-delayed projects like the EU minimum wage and platform work directives.
Hoffmann welcomed the publication of the new national anti-poverty plan, a strategy the CSL had advocated for years. While praising a significant increase in child benefits, he argued the measure should be implemented by 2026 instead of 2027, stressing that childhood social inequalities drive future educational disparities.
He criticized the plan's employment section as weak, insisting Luxembourg must urgently transpose the EU minimum wage directive, as the country has Europe's highest rate of "working poor." He highlighted that the current minimum wage is below the poverty threshold, national reference budgets, and EU recommendations, and criticized former minister Mischo for downplaying the issue.
Regarding pensions, Hoffmann argued for a straightforward increase in the minimum pension instead of the plan's targeted measure for older households. He stated it is unreasonable for 40-year careers to end in poverty, noting a higher minimum pension would particularly benefit women and cross-border workers.
On housing, Hoffmann said the plan lacks concrete measures to address structural issues like insufficient affordable housing, speculation, and high rents. He acknowledged planned projects but urged action against vacant land and homes.
Finally, Hoffmann stressed that poverty discussions must include wealth, which the plan overlooks. He proposed higher taxes on top incomes and capital gains, and suggested Luxembourg consider wealth or inheritance taxes, noting the OECD has also pointed out the country's weakness in this area.
