The announcement by the management of Delhaize in Belgium on 7 March that it would convert 128 integrated shops into franchises came as a shock to employees, who went on strike. The strike is still ongoing. It also caused concern in the grand duchy, where the lion brand employs 1,200 people, 735 of whom work in integrated stores. Although the company’s , referring to a “completely different situation from Belgium,” Luxembourg employees, like the OGBL, are watching the situation on the other side of the border with a very close eye.
The collective agreement that makes all the difference
One of the notable differences between the integrated model and that of the Delhaize franchise in Luxembourg is first of all that of representation. “In Luxembourg, we have staff delegations for more than 15 employees,” says David Angel, central secretary of the OGBL. But the Luxembourg franchises are often small entities with less than 15 employees and in which employee representation is therefore not guaranteed.
The other major difference which affects the social benefits of franchise employees is the collective agreement--or rather, the lack of a collective agreement. “At Delhaize Luxembourg, for the integrated shops only, a collective agreement exists and guarantees certain benefits to employees, such as a bonus for Sunday work, end-of-year bonuses, days off and a thirteenth month. In franchises, this collective agreement is not an obligation,” explains Angel.
Without a collective agreement, there is no way to control working conditions.
This collective agreement was negotiated at the beginning of 2021 and signed on 20 July of the same year. It runs for three years, until 30 June 2024. It should also be noted that there is no comprehensive sectoral collective agreement in commerce in Luxembourg either. “This represents a real risk with a model such as a franchise, because without a collective agreement, there is no way to control working conditions,” explains Angel.
Thus, employees in the so-called integrated model can benefit from certain advantages, thanks to the collective agreement: salary increase per year of seniority, obtaining a qualified salary after ten years of experience, but also various bonuses (end of year, objectives, responsibility, replacement, distance). They can also obtain discounts on their purchases or a supplement for training.
Salary: differences in hundreds of euros
The owner of a franchise is not obliged to respect any collective agreement and is therefore free to set the remuneration of his employees, in accordance with the law. “,” points out Angel. It is also free to set up, or not, the various benefits and extralegal supplements. “And generally speaking, if no collective agreement applies, the boss will not take the initiative to apply higher benefits or wages. In general, he sticks to the law,” he adds.
Concretely, the actual agreement for integrated shops provides for salary increases per year of seniority. For example, an unskilled employee in an integrated shop with four years’ seniority will receive a basic salary of €2,584.64, compared to the €2,447.07 provided for by law. He will therefore receive €137.57 more per month than an employee of a franchise, where the boss often only applies the legal minimum for the remuneration of his staff.
Take the example of a restocker in charge of stocking the shelves, who has ten years’ seniority. In an integrated shop, the collective agreement provides that any employee with more than ten years' service can obtain the status of qualified worker and therefore the salary that goes with it, bringing his or her remuneration up to €2,936.48. Angel illustrates: “If that same employee with ten years’ service were to work in a franchised shop, he or she might only earn €2,447.07 a month, which is the unqualified minimum,” as obtaining qualified employee status is not a legal requirement either, and the franchise owner is therefore under no obligation to implement it.
Different working time provisions
Finally, this issue of the collective agreement also has a direct impact on the working time of employees. “The collective agreement also provides for a higher mark-up for Sunday work, i.e., a mark-up of 90% as opposed to the 70% provided for by the law. This is a point which, for the employees of the integrated Delhaize shops working in the north of Luxembourg, is very important since these shops are open every Sunday,” underlines the OGBL. It also provides for more favourable provisions than the law in terms of working hours, such as two paid breaks during the day, a time-saving account and two days’ social leave.
As a reminder, Delhaize has ten integrated supermarkets in Luxembourg: in Bertrange, Alzingen, Walferdange, Strassen, Belval, Pommerloch, Schmiede, Schengen, Capellen and Junglinster. An eleventh is planned to open in Hamm.
There are also two integrated proxies: in Hamilius and in the station district. The proxy in Esch was one of the integrated ones and was franchised in 2021. The rest of the 46 outlets are franchised.
This story was first published in French on . It has been translated and edited for Delano.