2001-2 national metalworking agreement signed

In April 2001, trade unions and employers in the Belgian metalworking sector concluded a national agreement, covering 155,000 workers in 6,000 companies. The deal, which implements the 2001-2 intersectoral agreement, includes: a substantial collective wage increase with scope for negotiations at company level; an increase in contributions to the sectoral pensions fund; and the establishment of a women's joint working group.

On 22 December 2000, the central social partner organisations signed a national intersectoral agreement for the period 2001-2 (BE0101337F). Following the conclusion of this deal, it was up to Belgium's 100 or more joint committee s to develop further the provisions of the intersectoral framework at sector level. The metalworking industry (metaalbouw/fabrications métalliques) - covered by joint committee 111.1 & 2 - with 155,000 workers in 6,000 companies, is the largest sector within the broader metals area and plays a leading role in bargaining. On 2 April 2001, the metalworking trade unions and employers reached an agreement implementing the 2000-1 intersectoral accord, and we summarise the main provisions below.

Purchasing power

Under the new agreement, both the sectoral minimum wage and the wages actually paid out remain linked to the cost of living through indexation adjustments. In addition to these inflation-compensating adjustments, the agreement also provides for some significant pay increases - notably through an "envelope" of 1% of paybill, the distribution of which is to be negotiated at company level.

1% envelope

Between 2 April 2001 and 30 September 2001, negotiations can be conducted at company level (and only at this level) on the distribution of an "envelope" of 1% of paybill (gross pay plus the accompanying social security contributions). The application of pay rises based on the envelope can come into effect only on 1 January 2002 at the earliest. If negotiations are not desired or if an agreement cannot be reached in a company, then gross actual pay for all workers will increase by 1% on 1 January 2002.

Wage increase

From 1 May 2001, all actual hourly pay rates have been increased by BEF 5 (calculated on the basis of a 38-hour working week). On 1 January 2002, actual rates will be increased by 1% if no agreement has been reached on the distribution of the envelope (see previous point). On 1 April 2002, the actual hourly rate will increase by a further BEF 3.

Indexation

Inflation is compensated for through two indexation adjustments to pay rates. The first adjustment will take place on 1 July 2001, the second on 1 July 2002. The adjustments are estimated at 2% and 1.7% respectively.

Sectoral pensions fund

The previous agreement for the metalworking sector (for the period 1999-2000 - BE9912311F) provided for the establishment of a sector-based occupational pensions fund to supplement the existing pension systems. The costs of this extra-legal pension is borne by the employers through a contribution of 1% of gross pay. The new agreement for 2001-2 increases this contribution to 1.25% of pay from April 2001 and to 1.5% from 1 April 2002.

Time credit

The agreement provides workers with an entitlement to a "time credit" (tijdskrediet/credit-temps) from 1 January 2002. The right to a time credit has recently been introduced by intersectoral collective agreement No. 77, concluded in February 2001 by the bipartite National Labour Council (Conseil National du Travail/Nationale Arbeidsraad, CNT/NAR). The time credit replaces the previous national system of career breaks that comes to an end at the end of 2001 (BE9810248N). The career break scheme enables employees to suspend their employment, for whatever reason, or to reduce their working hours while receiving an allowance and maintaining their social security rights. The underlying idea of the new time credit is again that, in the "active welfare state", men and women must be given the opportunity to reconcile a professional career with family responsibilities, thanks to flexible entry and exit options.

In the negotiations in the metalworking sector, the social partners extended the length of the time credit entitlement from the one year set at intersectoral level to three years (in total over an employee's career). In addition, it is possible to depart from this sectoral arrangement at company level by increasing the time credit entitlement from three years to five years. In practice, this will mean that workers in the metalworking sector may take a break in their employment for a total period of five years over their entire career, while receiving an allowance and preserving their social security rights.

Women's joint working group

At the suggestion of the Centrale van de Metaalbewerkers/Centrale du Métal (CMB) the metalworkers' union affiliated to the socialist Belgian General Federation of Labour (Algemeen Belgisch Vakverbond/Fédération Générale du Travail de Belgique, ABVV/FGTB), a permanent women's joint working group will be set up within the sector. The working group will develop and formulate constructive proposals to the sectoral joint committee relating to the opportunities for women in the industry. The working group will also examine the extent to which there are discriminatory rules with respect to women and formulate advice to remedy them. For example, it is known that female workers in the metalworking sector have fewer opportunities for vocational training in comparison with their male colleagues, and that women are underrepresented in the higher positions.

Notice periods

The period of notice of termination of employment contract for blue-collar workers who have worked in a company for between 15 years and 20 years is to be increased by 14 days to 112 days. This increase has to be placed in the context of the fight for equal treatment between the statuses of blue-collar and white-collar workers (BE0003307F). Belgian labour law still makes a distinction between white-collar and blue-collar workers, with discriminatory rules as a result. One area of discrimination is the difference in notice periods. Blue-collar workers have shorter periods of notice and thus lower compensation if they are dismissed.

Earlier agreements in the metalworking sector had also worked at harmonising white- and blue-collar status in terms of notice periods. With the extension in the new agreement, discrimination in notice periods in the metalworking sector has been nearly eliminated

Union and employer reaction

Both main trade unions in metalworking - CMB and the Christelijke Centrale der Metaalbewerkers van België/Centrale Chrétienne des Métallurgistes de Belgique (CCMB) affiliated to the Confederation of Christian Trade Unions (Algemeen Christelijk Vakverbond/Confédération des Syndicats Chrétiens, ACV/CSC) - are satisfied with the results of the negotiations. In particular, after recent reports of improved economic performance in the sector, their expectations regarding purchasing power increases were high. These expectations were satisfied without fuss. The unions acknowledge, however, that the good result in terms of wage increases is partly at the expense of a number of "qualitative" elements. For example, no progress was made with regard to training opportunities or stress at work. However, the fact that employers' requirements for more flexibility were staved off was seen as extremely positive by the unions.

The AGORIA employers' organisation (formerly called Fabrimetal) called the accord a "purchasing power agreement" and regretted the fact that the extension of opportunities for employees to harmonise work and family life more flexibly (ie the extension of time credits, formerly career breaks) was not matched by any concessions on more flexible working arrangements that could benefit companies.

Commentary

With an estimated labour cost increase in the agreement of around 7%, the pay bargaining results in the metalworking sector remain within the margin of the maximum permitted pay increase, as set in the intersectoral wage norm for 2001-2 (BE0101337F). The wage norm links pay increases in Belgium to those of its three most important trading partners (the Netherlands, France and Germany). The metalworking sector agreement is thereby in keeping with those in most other large sectors, where the wage standard of 6.4% (or 7% for the sectors with a good economic performance - the so-called "economy bonus") has been followed quite closely in the 2001-2 bargaining round.

With regard to content, the new agreement contains few innovations. Existing arrangements, on early retirement pensions and flexibility for example, have been extended for the duration of the agreement. Also notable is the absence of provisions with regard to reductions in working hours, notwithstanding the fact that the socialist Minister of Employment and Labour, Laurette Onkelinx, reopened the debate on this issue in 2000 (BE0005312F). (Jürgen Oste, TESA/VUB)