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Netherlands

Background information on industrial relations in Netherlands

• 27 Nov 2006
  Netherlands: Government pushes for wage moderation despite union demands for wage increases

  The three largest Dutch trade unions will be putting higher wage demands on the agenda in the negotiations of autumn of 2006 as recent economic growth now offers scope for such a move. The Prime Minister, on the other hand, sees this growth as a confirmation of the success of his moderation policy and is urging for continued wage moderation. The Central Planning Office forecasts economic growth in the coming years and a further fall in unemployment. The Central Bureau of Statistics demonstrates that real expendable income has fallen in the past few years, while at the same time labour costs have increased. As a result, the Confederation of Netherlands Industry and Employers wants to abolish structured wage increases; the association is putting one-off increases and performance-related remuneration on the agenda for 2007.

• 27 Nov 2006
  Netherlands: Recommendation prioritises employment growth to offset ageing population

  In its medium-term recommendation, the Social and Economic Council prioritises employment growth as the best means of coping with the consequences of an ageing population. The council considers that at least 400,000 jobs will have to be created by 2040. The higher degree of participation is necessary to cover the mounting costs of an ageing population and to withstand competition with fast-rising economies in India and China. Achieving the recommendation was no mean feat,as the social partners are completely opposed on certain issues, such as making dismissal legislation more flexible.

• 27 Nov 2006
  Netherlands: Restrictions for eastern European workers eased

  In the summer of 2006, the government opened up a total of 21 economic sectors to employees from the new EU Member States. However, the Dutch Trade Union Federation (FNV) and a majority of the Lower House of Parliament criticised that too little is being done to counteract underpayment and illegal labour. Research conducted by FNV shows that, even in an organised sector such as metalworking, foreign workers are being paid less than the minimum wage. FNV and the Lower Chamber are also concerned that increased immigration may undermine existing plans for combating unemployment among young people.

• 18 Oct 2006
  Netherlands: Social and Economic Council calls for individual entitlement to education

  In a medium-term draft recommendation, issued in July 2006, the Social and Economic Council (SER) emphasises the importance of individual rights to education. The draft recommendation outlines how such rights should guarantee the possibility of lifelong education, thus increasing the employability of workers. This idea forms part of a government approach that is focused on activation measures aimed at facilitating employees in maintaining their employability in a rapidly changing knowledge economy. Although the social partners appear to be in agreement about this issue, the employers in return wish to achieve their long-held goal to increase the flexibility of dismissal rules – a measure that employee representatives in the SER are strongly opposed to.

• 16 Oct 2006
  Netherlands: Social partners agree on 3% general wage increase

  In July 2006, a collective wage agreement stipulating an average increase of 3% was secured. Although this was higher than that agreed in 2005, the overall increase can be considered relatively low. The difficult labour market situation has not tempted the trade unions to demand higher wage requirements. In 2005, the number of strikes doubled compared with the total number of strikes recorded in 2004 and industrial unrest continues into 2006.

• 16 Oct 2006
  Netherlands: Manifesto calls for companies to pay out unemployment benefits

  Companies should be made financially responsible for unemployment benefits, according to a manifesto signed by a coalition of employee and employer representatives. The proposal, initiated by two prominent members of the Dutch Trade Union Federation (FNV), has met with both approval and criticism from the various political parties. Labour experts have also expressed some doubts about the proposal. Nevertheless, all parties agree that through this initiative, FNV has made an attempt to end the deadlock regarding dismissal rules in the Social and Economic Council.

• 16 Oct 2006
  Netherlands: Employer’s contribution to childcare to be made compulsory

  The Minister of Social Affairs is making it compulsory for employers to contribute to childcare costs, which will come into effect from 1 January 2007. The minister believes that the current, voluntary scheme is not functioning as intended. Under this scheme, parents, the government and employers are each required to pay one third of childcare costs. Employer organisations have opposed the new proposal, while the AbvaKabo trade union has spoken in favour of the initiative. It is suggested that a better solution would be for childcare to constitute a basic provision, primarily financed through government funds. The biggest opposition party, the Labour Party, supports this idea and has presented an initiative bill to this effect to the Lower House of Parliament.

• 16 Oct 2006
  Netherlands: Social partners recognise need for more training for young people

  In the autumn of 2005, during a consultation between the government and the social partners, the union federations highlighted the lack of training opportunities for young people with a low level of education. The government and employers both agreed that the issue requires greater attention, and hence a new budget to tackle the problem was made available. Research has shown that effective coaching during on-the-job training and greater company investment in training will help to improve the situation for low-skilled workers.

• 16 Oct 2006
  Netherlands: Opening of borders to eastern European workers

  In March 2006, the Dutch government decided to formally open its borders to eastern European workers, in line with EU agreements, with effect from 1 May 2006. A transitional arrangement currently applies, allowing for the introduction of a less stringent work permit, and will be maintained until 1 January 2007. At the same time, the government is expected to assess some economic sectors in terms of employment trends. Employers believe that this arrangement is unnecessary, while the unions are in favour of introducing a trial period. A majority of members of parliament also favour stricter policies during the transition period. The social partners are expected to assess, sector by sector, whether Dutch employees are being displaced due to an increase of foreign workers.

• 12 Oct 2006
  Netherlands: Internet-based union established

  In a bid to maintain their position, trade unions in the Netherlands are looking for different ways to attract new members. The two trade unions, De Unie and CNV Dienstenbond, have set up a low-cost, low-threshold Internet-based union. Earlier, as an alternative to conventional membership, the Dutch Trade Union Federation (FNV) introduced a much cheaper option in the form of ‘donorship’ in the hotel, restaurant and catering industry.

• 25 Sep 2006
  Netherlands: Shareholders back Avebe rescue plan

  Avebe, the leading potato starch company in the Netherlands and largest industrial employer in the north of the country, again finds itself in difficult circumstances. Following several reorganisations aimed at controlling dwindling revenues, the company’s account currently holds insufficient funds to pay the potato suppliers. The farmers, who are also shareholders of the company, finally agreed to a rescue plan involving a measure of financial risk on their part.

• 31 Jul 2006
  Netherlands: Older employees prone to dismissal under age balance principle

  Since the spring of 2006, employers are obliged to use the ‘proportion’ or age balance principle when making employees redundant as a result of restructuring. It now appears that this principle affects older employees more than other age groups. The Social and Economic Council’s advice concerning new legislation for dismissals has been postponed until the autumn, as the social partners cannot reach agreement on the revised legislation. Employers are in favour of more flexible legislation, while the majority of employee representatives prefer the current regulations.

• 31 Jul 2006
  Netherlands: Threatened job losses at NedCar automobile plant

  Up to a third of jobs at the NedCar car manufacturing plant in Born, in the southeast of the Netherlands, may soon be cut. In April 2006, owners Mitsubishi and DaimlerCrysler announced their intention to reduce production output to 70,000 cars, threatening the jobs of at least 1,000 employees. The employees and trade unions are demanding that the company provides alternative employment by pursuing new models for manufacture, and are calling on the government to provide the company with financial support. However, the Dutch prime minister rejected this demand. Following strike action by employees, the Mitsubishi management has accepted the unions’ proposal to seek other production possibilities. In the coming four months, no dismissals will take place.

• 10 May 2006
  Netherlands: Age discrimination towards younger workers in supermarket sector

  The Dutch Equal Treatment Commission (CGB) has confirmed cases of age discrimination among younger employees. A test case was run at the request of CNV Jongeren, the youth wing of the Christian Trade Union Federation. In line with CNV Jongeren’s assertion, the CGB found that when dismissing young staff members, supermarkets were technically breaching the Flexibility and Security Act. However, the sector-wide union organisation for Dutch supermarkets (CBL) feels that it has been unjustly attacked. Meanwhile, CNV Jongeren is proposing to link employment contracts to employees’ length of study.

• 08 Feb 2006
  Netherlands: Minimum number of leave days may not be paid out

  At the end of 2005, the Confederation of Netherlands Industries and Employers (VNO-NCW) announced that it wanted to ask employees to swap days off for a higher salary. If the membership base agrees to the idea, such a swap would be brought up in the forthcoming collective bargaining rounds. At the start of 2006, the Ministry of Social Affairs also made it known that employees could be paid out for regular days of leave. The Dutch Federation of Trade Unions (Federatie Nederlandse Vakbeweging, FNV) initiated legal proceedings bringing the case before the European Court, with success it would seem.

• 08 Feb 2006
  Netherlands: Numerous far-reaching salary changes effective 1 January 2006

  Effective 1 January 2006 various changes have been introduced that have an impact on salary levels. This relates to the way in which the new healthcare financing system, introduction of the Work and Income According to Labour Capacity Act (Werk en Inkomen naar Arbeidsvermogen, WIA) following on from the Occupational Disability Insurance Act (Wet op de Arbeidsongeschiktheidsverzekering, WAO), changes in early retirement, salary savings and life-cycle leave schemes, and new unemployment premiums affect income levels. It also relates to lowering certain tax rates and, if possible, introducing a new collective agreement effective 1 January. This makes it practically impossible to draw an objective comparison between salaries in December 2005 and January 2006. It is however already quite clear that civil servants and teaching staff will lose ground as a result of the new healthcare system.

• 06 Feb 2006
  Netherlands: Sectoral collective agreement signed without support of largest unions

  In the Netherlands, sector-wide collective agreements are usually concluded by all the trade unions affiliated to the three main federations. However, in December 2005 , this pattern was broken in the hotel, restaurant and catering industry, where an agreement was signed only by the union for managerial and professional staff, and not by the much larger unions affiliated to the FNV and CNV federations. A similar situation emerged in January 2006 in fashion and sports retail.

• 26 Jan 2006
  Netherlands: Positive response to proposed Services Directive

  The proposed Services Directive has caused a stir in several European countries. European trade unions, especially in France, have made sure that the European Parliament drastically amends the Services Directive by the end of 2005. The main argument against the Services Directive is that it will lead to social dumping. In the Netherlands, however, the response to the proposed Services Directive has been generally positive. The unions and Dutch government alike are committed to the recommendation put forward by the Social and Economic Council (Sociaal Economische Raad, SER).

• 05 Jan 2006
  Netherlands: Calls for reinstatement of public maternity benefits for self-employed

  In late 2005, the Dutch Trade Union Federation (FNV) and the Dutch Federation of Small and Medium-Sized Enterprises (MKB-Nederland) called for the reinstatement of a public maternity benefit scheme for self-employed people. The scheme was abolished in 2004, with the idea being that it could be replaced by private insurance arrangements. However, in practice insurers have reportedly declined many applications and self-employed people have been deterred by high premiums. At the request of parliament, the government has also consulted the International Labour Organisation (ILO) and the Dutch Equal Treatment Commission about whether it was entitled under international and EU law to abolish the maternity benefits.