POLITICS & INSTITUTIONS - ECONOMY

Travel and events sectors agree plans to avoid lay-offs



Revenue of travel agencies has plummeted in the wake of the coronavirus pandemic Shutterstock

Revenue of travel agencies has plummeted in the wake of the coronavirus pandemic Shutterstock

The Luxembourg union of travel agencies (ULAV) and the Luxembourg Event Association have agreed on a job retention plan with labour union OGBL, aimed at preventing layoff this year. 

“The outbreak of the covid-19 pandemic has hit the tourism and events sectors hard,” the OGBL said. “The social partners are aware that the economic and financial situation of many companies is becoming alarming while uncertainty reigns in these two particularly vulnerable sectors. Business planning is difficult for these companies due to the persistence of the pandemic.”

The travel agencies union counts around 30 members in Luxembourg. Last year in April, they saw revenue plummet by up to 80% compared to the year before.

The job retention plan with both sectors is awaiting confirmation by the government’s Comité de conjuncture next week.

It foresees partial unemployment as a tool to keep people in jobs while easing the financial burden for companies. Under the scheme, the state pays 80% of an employee’s salary who is working reduced hours. The company continues paying social security contributions.

Other elements of the plan include training, a job guarantee, early retirement options and lending out workers to other industries.

“If companies respect the job retention plan, around 1,000 employees in the events sector and around 450 employees in the travel agency sector are covered until the end of the year,” said OGBL secretary general Michelle Cloos, adding that it was also in the companies’ interest to keep staff for when activity in the sectors restarts.

This article was first published in French on paperjam.lu and has been translated and edited for Delano.