First step towards working time reductions in distribution sector

Following the threat of a strike, employers and trade unions in Belgian supermarkets reached a three-year collective agreement in March 1999. It includes a phased reduction in weekly working time to 35 hours, while part-time employees will be placed on a four-day week. Expectations are that this agreement will now set a benchmark for negotiations throughout the distribution sector.

During the 1999 Belgian sectoral collective bargaining round (BE9901260N), the demand for working time reductions (if possible down to 32 hours per week) has come primarily from three trade unions organising in the distribution sector. However, for the employers, the Federation of Belgian Enterprises (Verbond van Belgische Ondernemingen/Fédération des Entreprises de Belgique, VBO/FEB) has recently claimed in a commentary on the current bargaining round that this demand is unrealistic and poses a threat to the need for flexibility. In addition, the demand allegedly ignores the real problems of the labour market - for example, the paradox of job vacancies for which no qualified workers can be found (BE9902262N).

Nevertheless, the trade unions voiced a clear demand for working time reductions in supermarkets, warehouses and the retail trade. An initial refusal by the employers' organisations gave the subsequent negotiations a rather harsh tone. This prompted the unions to give notice of a strike in the supermarkets subsector. The threat appeared to result in a change of course on the part of the employers. In a new three-year agreement signed in March 1999, the large supermarkets - Grand Bazar, Delhaize, Colruyt and Match- agreed to phased working time reductions starting from September 2000. Working time will be reduced initially from 36 to 35.5 hours and then a year later to 35 hours. For part-time workers (employed for 24 hours a week or less) there will be a rescheduling of working time, which will result in a four-day working week.

Besides an agreement on working time reductions, the unions also managed to negotiate a wage increase. Those working full time will receive BEF 1,000 a month extra, which means a real increase in purchasing power of about 2%. Those on part-time contracts will see their purchasing power increase by 5%.

The supermarkets subsector is important not only from an economic point of view. VBO/FEB is due to elect a new president, and the incumbent Karel Boone (of Corona-Lotus) will be replaced by Gui de Vaucleroy, the chief of Delhaize. Whether this means the end of the fierce opposition by employers to further agreements on working time reductions remains to be seen. However, a slight easing of the employers' point of view might be expected.

There is clearly a feeling of satisfaction on both sides with the supermarkets agreement. There is in particular great satisfaction on the part of the unions because they have scored a success on a very difficult issue - one on which they stand rather isolated even within their own union confederations. The agreement creates the hope that other employers within the distribution sector will follow suit. However, there is also a sense of satisfaction on the part of the subsector's employers, since a strike with possibly serious economic consequences was prevented at the last moment.