Employers demand more stringent policy on disability benefits

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In January 1999, the main Dutch employers' organisation, VNO/NCW, demanded more stringent government implementation of the Occupational Disability Insurance Act. Despite the Prime Minister's cautious reaction, the state secretary responsible has pledged stricter application of the Act in future. The Liberal Party has called for the adoption of far-reaching measures, while the FNV trade union confederation's reaction to the employers' position has been highly dismissive.

According to the largest Dutch employers' association, VNO/NCW, the government should pursue a more stringent implementation of the Occupational Disability Insurance Act (Wet op de Arbeidsongeschiktheidsverzekering, WAO). VNO/NCW threatened in January 1999 that employers will not carry the financial burden of absence due to sickness and disability for more than two or three years, if the number of benefit recipients continues to grow at its current pace. The employers' association believes that the government should assume responsibility for insurance payments (at minimum benefit level) once this period has elapsed. Prime Minister Wim Kok responded promptly, stating that neither the level nor the duration of benefit payments is up for debate.

The number of Dutch employees with a disability dropped from 951,000 to 855,000 between 1993 and 1996, a period in which the cabinet introduced a number of measures governing the level and duration of WAO benefit payments (NL9807188F). However, since 1997 the number of benefit recipients has risen rapidly, and is now threatening to reach the 900,000 mark. Employers are now sending warning signals to the government. Privatisation of the social security system has left them shouldering financial responsibility for both the first year of sick leave as well as five years of follow-up benefits within the scope of WAO obligations. In terms of the latter, employers would like to limit the risks: in their view, the government should take over the financial burden after a few years. Employers are holding the cabinet responsible for the recent rise in the number of benefit recipients, alleging a new lapse in the stringency of medical disability assessments.

The latest figures on the rise in benefit recipient numbers came as a shock to the government as well. State Secretary Hans Hoogervorst of the Ministry of Social Affairs and Employment has already announced more stringent rules for future cases of disability. The secretary aims to reduce the number of recipients by 16,000 over the course of the next four years. The Liberal Party (VVD) - one of the parties in the coalition government - has already indicated its desire to assess both existing benefit recipients as well as the influx of new cases when Mr Hoogervorst's policy proposal comes up for debate in parliament's Second Chamber. The VVD would especially like to see those deemed unfit to work on the basis of mental disorders - 35% of the total number of benefit recipients - called up again and possibly reassessed. The largest trade union confederation, FNV, has made it known that it considers the VNO/NCW's attack on the WAO as "beneath the dignity" of the largest Dutch employers' association.