Following several months of negotiations between trade unions and representatives of the banking and insurance industries regarding collective labour agreements in the financial sector, the Luxembourg Bankers’ Association (ABBL), in a joint press release with the Aleba, LCGB and OGBL trade unions, on 11 July 2024 announced that they had come to an agreement for the Luxembourg banking sector for the 2024-2026 period.

Eight major points

The new collective agreement includes eight points, which are:

-A one-off bonus of €500 for all employees, payable in 2025.

-Increase in the loyalty bonus.

-“Financial envelope” to be distributed for 2024, 2025 and 2026 to reward employee commitment.

-Increase in departure amounts and thresholds for the four groups.

-Increase in the presumption of acquisition of skills.

-Introduction of a minimum budget for outplacement training of €5,000 (with a maximum of €8,000).

-10% increase in the annual training budget.

-Allocation of an individual training allowance of at least 16 hours per year.

Challenge of attracting, training and retaining talent

“Training is essential for the employability of employees in the banking sector, as it enables them to acquire the skills they need to adapt to technological and regulatory developments and new customer expectations, thereby ensuring their relevance and competitiveness in the labour market,” says the press release. “The new collective agreement provides for a number of advances in this context. For example, the budget earmarked by the banks for training has been increased by 10% for the 2024-2026 financial years. In addition, each employee covered by the agreement will receive an individual training allowance of at least 16 hours per year (excluding compulsory and reorientation training). In general terms, the provisions concerning employability have been drafted in such a way as to emphasise the joint commitment of the employee and his employer in this area.”

“The pace of change in the banking industry has accelerated in recent years, forcing bankers to develop new skills,” ABBL CEO  states in the communiqué. “At the same time, to meet these challenges, Luxembourg banks are facing the triple challenge of attracting, training and retaining talent, all in a highly competitive market and in a recruitment pool that is tending to dry up.”

Negotiations began last November. Final texts still need to be approved by the various organisations.

This article was originally published in .