Collective bargaining agreement in the banking sector

Faced with the challenges posed by changes in banking professions and their attractiveness, the ABBL and union representatives from the OGBL, LCGB and ALEBA have reached an agreement on the collective bargaining agreement for the Luxembourg banking sector for the period 2024-2026. The final texts are now in the approval phase. The new agreement focuses on the issue of employability and rewards the loyalty and commitment of employees in the banking sector.

Communicated by the OGBL, LCGB, ALEBA and ABBL, 11 July 2024

The profession of banking is changing fast

The challenges are numerous:

• Changing customer expectations towards more accessible and transparent services.
• Integration of digital technologies and artificial intelligence, which automate certain traditional tasks and improve the personalisation of customer services.
• Increasingly stringent regulations requiring greater vigilance in terms of compliance and risk management.
• Competition from fintechs stimulating innovation and diversification of banking offerings.
• Increasing risks of cyberattacks and online fraud.

The social partners have revised some of the provisions of the current agreement, in order to create a favourable environment for bank employees to deal with these changes as effectively as possible, but also to enhance the attractiveness of the banking sector and thus contribute to its sustainability and future growth.

CEO of the ABBL

Focus on training

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 changes and to new customer expectations, thus ensuring their relevance and competitiveness in the job market.

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).

Generally speaking, the provisions concerning employability have been drafted in such a way as to emphasise the joint commitment of the employee and his or her employer in this area.

Rewarding employee loyalty and commitment

For the OGBL, it was vital that the new agreement finally rewarded the loyalty and commitment of those on whom the success of every company depends, namely its employees. As a result, the loyalty bonus has been raised, the starting and scale thresholds have been increased, and the budget that banks devote to rewarding their deserving employees has been revised upwards. In addition, a one-off bonus was negotiated when the new agreement was signed. It will be paid in January 2025.

Finally, the balance between private and professional life was also an important point in the discussions. A new chapter has been created in this respect and each company is encouraged to implement flexible working options tailored to the specific needs of the business and its employees.

Discussions on the new collective agreement took place in a constructive spirit, demonstrating the responsibility of all signatories not only to employees in the sector, but also to the Grand Duchy as a whole, as the banking sector is a pillar of the country’s economy and a key contributor to its prosperity.

The new collective agreement in a nutshell

• Exceptional bonus of EUR 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 starting amounts and thresholds for the 4 groups.
• Increase in the presumption of acquisition of skills.
• Introduction of a minimum budget for outplacement training of EUR 5,000 (with a maximum of EUR 8,000).
• 10% increase in the annual training budget.
• Allocation of an individual training allowance of at least 16 hours per year.