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Luxembourg: The social plan at SES which received state aid is controversial

A united front. The OGBL and LCGB unions expressed their anger on Friday after the announcement to staff of a social plan which could impact 80 jobs at the Luxembourg satellite operator SES out of a current workforce of 680.

A decision that the management of the company, based in Betzdorf (Grevenmacher), justifies by an outsourcing strategy in India. “This does not only concern one department, but different positions in IT, engineering and even the common (administrative) service,” explains Julie Roden of the OGBL. Many SES employees occupy very specialized positions. These are people who are often expatriates and many of whom will have to “leave Luxembourg”, continues the central secretary.

Denouncing a “scandalous” “brutal (…) decision a few weeks before the end of year holidays” and demanding a “job retention plan”, the unions criticize the government for not having asked for sufficient guarantees on employment in this file. Especially since the State, a major shareholder, holds 33.3% of the votes on the board of directors.

Luxembourg’s flagship, presented to numerous foreign heads of state and personalities during recent visits, the satellite operator has undergone several restructurings in recent years, framed in 2020, 2022 and December 2023 by job retention plans. Plans which, according to Lénk MP Marc Baum, have financially committed public authorities through instruments such as “early retirement-adjustment, temporary re-employment aid and hiring aid”. Aid that the MP, in this context of outsourcing, asked the government to quantify through a parliamentary question on November 6, while awaiting a response.

The OGBL even fears that the company will move forward in disguise. “During the last plan, last December, management did not talk about relocation to India. However, it’s not something that happens overnight,” says Julie Roden. The unions also fear the consequences on employment of the announced merger with Intelsat.

Last April, SES acquired its American rival for $3.1 billion, or 2.8 billion euros. “Excellent news for the Luxembourg economy,” said Prime Minister Luc Frieden at the time. “Management has already told us to distinguish between this outsourcing program and the acquisition of Intelsat which has yet to be ratified in the United States,” adds Julie Roden who already fears new consequences on employment in Luxembourg.

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