Crisis mirrored in dwindling collective wage increases in 2009

Although collective wage increases show an upturn of 2.9% in 2009 as a whole, compared with 3.3% in 2008, quarterly figures for 2009 show a marked decrease in collective wage increases. The rise in career policy-related collective agreements and on sustainable employability mirrors the current recession. Such developments in collective bargaining policy can be placed within a framework of agreements reached between the peak social partner organisations between 2007 and 2009.

Wage increase tapers off in 2009

On average, the economic crisis had a limited impact on collective wage increases in the Netherlands in 2009. However, considering the wage increases on a quarterly basis produces a different picture. While collectively agreed wages were still 3.7% higher in the first quarter of 2009, they had dipped to 2.4% by the fourth quarter of 2009. Some 42% of the collectively agreed wage increases in the fourth quarter of 2009 derived from collective agreements closed in the course of the year. It appears from this result that the economic crisis did indeed have a marked impact on wage levels.

At 3%, contract wage increases in 2009 are largely in line with collective wage increases. Contract wage trends can also be charted by comparing recent periods. Agreements reached before 1 January 2009 were characterised by an average contract wage increase of 3.2% over the course of 2009. Agreements concluded after 1 January 2009 were characterised by an average contract wage increase of 2.2% over the same year.

More agreements on sustainable employability

The exceptional profile of 2009 is also reflected in the development of other collective agreements. In contrast to the previous year, collective agreements concluded in 2009 paid more attention to career development. The increased level of attention for labour market-oriented employability policy as opposed to company-specific policy is also particularly noteworthy. The measures are directed at achieving sustainable employability. While in 2008 54% of the collective agreements (applicable to 66% of the workforce) contained agreements on labour market-oriented employability policy, this figure amounted to 69% of the collective agreements (applicable to 72% of the workforce) in 2009. Within this framework, steady growth can be seen in the number of agreements on career advancement, increasing from 75% to 77% of collective agreements (covering 77% to 80% of the workforce), and in the number of collective agreements on recognising acquired competencies, increasing from 23% to 24% of collective agreements (covering 30% to 33% of the workforce).

Agreements at centralised level

The increase in the number of clauses in collective agreements on sustainable employability can also be seen in light of the agreements reached annually between the social partners at state level at the participation summit. This summit has been held since 2007 and focuses on a joint effort by the cabinet and the social partners to raise labour market participation to a level of 80%. Despite economic policy tumbling, a decision was reached at the 2008 tripartite autumn consultation to pursue the course set at the participation summit to further reinforce labour market participation. In the tripartite social agreement concluded on 24 March 2009, cabinet and the social partners awarded priority to measures aiming to combat the economic crisis, with various measures already in the spotlight at the participation summit becoming even more urgent. Aside from stimulating economic growth directly, this involves investing in the ongoing employability of older and younger workers, in which regard training is an important factor. In the tripartite agreement, sustainable employability is primarily considered a matter of business and collective agreement policy. Additionally, however, government supports stimulating training through different (tax) incentives. Finally, the bipartite Labour Foundation (Stichting van de Arbeid) has issued recommendations on how utilising social partner training and organisation funds could contribute towards achieving this goal.

Marian Schaapman, Hugo Sinzheimer Institute (HSI)