FNV members vote in favour of social agreement

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In November 2003, it was announced that a majority of members of the Dutch Trade Union Federation (FNV) voting in a referendum had approved a 'social agreement' reached by the government, trade unions and employers’ organisations in October. The agreement includes a freeze in collectively agreed wages during 2004.

In October 2003, the annual autumn consultations (najaarsoverleg) held between the government and the social partners resulted in a 'social agreement' (sociaal akkoord) for 2004, with wage moderation as one of its core themes in the light of the current economic recession ( NL0310103F). The employers’ organisations involved in the deal were the Confederation of Netherlands Industry and Employers ( Vereniging van Nederlandse Ondernemingen-Nederlands Christelijk Werkgeversverbond, VNO-NCW) and the Dutch Federation of Small and Medium-sized Enterprises ( Midden en Kleinbedrijf, MKB). The trade union federations concerned were the Dutch Trade Union Federation ( Federatie Nederlandse Vakbeweging, FNV), the Christian Trade Union Federation ( Christelijk Nationaal Vakverbond, CNV) and the Federation of Managerial and Professional Staff ( Centrale voor Middelbaar en Hoger Personeel, MHP).

Under the deal, the trade unions have agreed to support a temporary pay freeze in collective agreements signed in 2004. In the following year, depending on how the economy recovers, a minimal wage increase will be permitted. It remains possible to reach collective agreements on periodic, performance-based wage increases. In exchange for this concession on the part of the the union federations, the government has either scrapped or watered down several previously announced public cost-cutting measures ( NL0306101N).

The deal was put to the members of FNV in a referendum. After numerous objections to the agreement were raised by various sections of the trade union movement, it came as a considerable relief to the government, employers and trade union officials when it was announced on 3 November that the agreement had been accepted by 56% of FNV members voting in the referendum, on a turn-out of 18% of the membership (more than 218,000 of the 1.2 million FNV members).

Discussions within FNV itself and the media have raised doubts about the use of such referenda. A referendum indicates that trade union officials may feel insufficiently mandated to conclude agreements and, moreover, it may set a precedent. Furthermore, the fact that union officials put the social agreement to the members without a recommendation (ie adopting a neutral position on how to vote) has been subject to fierce criticism. Critics claim that union officials were far too impartial and thus allowed opponents of the social agreement far too much leeway.

The outcome of the referendum has been presented in a positive light by both the government and employers. The latter went as far as to state that FNV members are now placing employment concerns above pay and are prepared to contribute towards reviving the ailing Dutch economy. A majority in the lower house of parliament also responded enthusiastically to the referendum result, as did the FNV chair, Lodewijk de Waal, who nonetheless indicated that the agreement in no way constituted the end of the battle. Gerda Verburg, vice-chair of the Christian Democratic Appeal ( Christen Democratisch Appèl, CDA), one of the ruling coalition parties, concluded that the outcome of the ballot shows that the government has not fallen short in meeting the unions' demands , though commentators believe that this may be a little premature.

Wouter Bos, the leader of the opposition social democratic Labour Party ( Partij van de Arbeid, PvdA), responded positively to the referendum result but warned that the government should not come up with a further round of cost-cutting measures. Indeed he called for a further relaxation of the government’s plans, which was disregarded by the Minister of Social Affairs, Arie Jan de Geus. However, the smaller opposition parties were less enthusiastic, criticising the ballot outcome, which they claim points to internal dissension within FNV - in the view of the Socialist Party ( Socialistische Partij, SP) - and a lack of support for the government’s plans - in the view of the Green Left ( GroenLinks, GL).

Although the referendum was consultative in nature and a definitive decision on the social agreement was to be taken on 17 November by the highest level of administrative authority within FNV, its federation council, the participating union chairs have already stated that they will respect the wishes of the membership. Even the three unions where a majority of the membership voted against the agreement - representing workers in hairdressing, hotels/restaurants/catering and construction respectively - will respect the agreement if it is approved by the federation council.