Arbitration by Prime Minister in healthcare bargaining dispute

Following a series of unsuccessful talks between the Minister of Health and healthcare employers in April 1998, the Dutch Prime Minister, Wim Kok, stepped in to mediate in the dispute over a new collective agreement for the sector.

The Prime Minister, Wim Kok, has chosen to act as a mediator in the healthcare collective bargaining dispute (NL9803168N) after several unsuccessful rounds of negotiations between the Minister of Health and healthcare employers. Both the Government and the employers have now agreed to arbitration by technical experts who will examine the viability of a range of pay increases. In essence, the dispute between employers and the Government lies in their differing opinions about the margin for pay increases. The trade unions have made no secret about their frustration over the lingering uncertainty over the new collective agreement for the sector, which should have come into force on 1 April 1998. They announced a national protest action for 23 April, and have already begun holding regional "warming-up" sessions.

Although different interpretations about the possibilities for pay increases in the healthcare sector exist, employers and employees agree on one issue: they are both equally dissatisfied with the Government's budget. The unions are demanding an average wage increase of 4%, plus 2% to pay for measures such as recruiting additional staff to alleviate excessive workloads. On the other hand, employers have calculated that they can offer a wage increase of only 0.5%. The Government, by contrast, claims that there is a 3% margin for pay increases. The president of the Dutch Federation of Employers in the Healthcare Sector (Nederlandse Zorgfederatie, NZF) has calculated that only 0.5% remains of this 3%, 2.5% having already been spent on efficiency savings, increased pension insurance and hiring new staff to reduce waiting lists.

The employers had given the Government an ultimatum even before their negotiations resulted - as expected - in a deadlock on 9 April. They threatened that they would take legal action if the Government did not revise its budget. In response, on 7 April, the Minister of Health conferred with the Ministers of Finance and Social Affairs, in a meeting chaired by the Prime Minister, to draw up a final offer: funding for a 3.06% wage increase. This was then rejected as insufficient by the employers. Talks resumed within the Government, which once again opened negotiations with the healthcare employers. This time, it offered fiscal benefits for training, childcare facilities and women returning to the labour market. However, the primary terms of employment remained unchanged. In a subsequent press conference, the Minister of Health gave no figures, but did feel that the Government should provide the employers with more room to negotiate with the unions. The Prime Minister was less sympathetic and wondered whether pension insurance had to rise at all. In the first place, he wished to have more hard data to help his financial experts with their calculations. However, with a general election approaching on 6 May, time was pressing. This could mean that a collective agreement in the healthcare sector could become a matter for the next Government - which would be the least desirable alternative for all involved.