The secretary general of the FDA, Romain Schmit, says that a reduction in working hours is a counterproductive measure in every respect. (Photo: Romain Gamba/Maison Moderne/Archives)

The secretary general of the FDA, Romain Schmit, says that a reduction in working hours is a counterproductive measure in every respect. (Photo: Romain Gamba/Maison Moderne/Archives)

The Luxembourg federation of craftspeople has warned against measures, including the reduction of working hours, that could become an additional burden for small and medium-sized businesses in the sector.

“A reduction in working hours, as mentioned by the minister for employment, is incomprehensible. At a time when there is a shortage of workers in all sectors of the economy, when the housing market is under massive pressure and when mobility from border regions is becoming increasingly difficult, a reduction in working hours is a counterproductive measure in every respect,” said secretary general of the Fédération des artisans (FDA)  in a statement after a general meeting on 14 June.

A reduction in working hours is not an option for the industry, which includes builders, carpenters, electricians and other vocational jobs. The federation said that “the government’s current policy consists above all of making it more difficult to organise work, by multiplying holidays and other initiatives.”

Due to the energy crisis, the whole sector is under pressure. Companies are facing high inflation and rising material prices. To make matters worse, on top of high energy prices, companies must pay for index-related wage increases.

The federation welcomed the tripartite decision to freeze indexation until April 2023. “This will ensure some planning security, at least in the area of wages,” said the institution, adding that “companies cannot pass on all the increases to their customers.”

The pressure is on for many sectors of the economy. The automobile sector is suffering due to delivery difficulties. The construction sector, which has seen the prices of certain materials soar, sometimes encounters difficulties to continue and plan certain projects. The food sector is not left out, since the rise in energy and raw material prices is also having an impact on activity.

The federation is working on proposals to manage the crisis, which it will submit in the coming months in view of the elections next year, it said. “Without a competitive economy, and above all without a dynamic middle class, Luxembourg will no longer be able to afford a redistribution policy in the future,” it said.

This story was first published in French on . It has been translated and edited for Delano.