In late October 1999, the Dutch FNV trade union confederation announced a demand for a 3% pay increase in forthcoming wage negotiations. FNV's target, endorsed by the CNV confederation, met with a chorus of disapproval from its affiliated unions, which are seeking higher increases. The unions have been under government pressure to reduce wage demands, in the light of tax reductions contained in a new fiscal plan. The largest employers' association, VNO-NCW, has adopted the same stance.
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In late October 1999, the Dutch FNV trade union confederation announced a demand for a 3% pay increase in forthcoming wage negotiations. FNV's target, endorsed by the CNV confederation, met with a chorus of disapproval from its affiliated unions, which are seeking higher increases. The unions have been under government pressure to reduce wage demands, in the light of tax reductions contained in a new fiscal plan. The largest employers' association, VNO-NCW, has adopted the same stance.
The announcement on 25 October 1999 by the Dutch Trade Union Federation (Federatie Nederlandse Vakbeweging, FNV) of a 3% maximum pay increase demand for forthcoming wage negotiations, met with a negative response from some affiliated unions. The AOB teachers' union, the Horecabond catering union and the NVJ journalists' union all want at least 4%. The 3% demand - also endorsed by the Christian Trade Union Federation (Christelijk Nationaal Vakverbond, CNV) - was, in fact, a bid by FNV to placate critics who deemed a previous proposal of 2% too low. Coupled with correction for inflation, a 3% pay increase would translate into a 1% increase in purchasing power over the coming year. In addition to the 3%, FNV is demanding a minimum of 0.5% of paybill for training, fully paid care leave and the adoption of measures aimed at reducing pressure at work. Protesting unions firmly believe that, in setting targets for pay increases, more attention should be paid to labour shortages and the unprecedented recent increase in executive salaries in the Netherlands (NL9908159N). One FNV affiliate, the AbvaKabo civil servants' union, proposed paying part of agreed pay increases in cash, rather than as a percentage rise, to allow minimum wage earners to benefit more.
A disagreement with the government preceded FNV's decision on the 3% pay demand. During September and October, the cabinet appealed to the trade union confederations to pursue a policy of wage moderation and to keep wage demands below the level of inflation. The government's new tax plan, effective in 2001, would provide employees with sufficient tax breaks to compensate for a policy of pay restraint, it was claimed. The FNV chair, Lodewijk de Waal, was outraged. He stated that FNV had previously proposed wage increases below the level of inflation in times of economic stagnation, but had always received shortened working hours from employers in exchange. According to FNV, the current situation of economic growth and labour shortages means that the situation is now entirely different.
VNO-NCW, the main employers' association, believes that the wage demands put forward by FNV and CNV will negatively affect the Netherlands' competitive position as well as domestic employment opportunities. According to VNO-NCW, compensation for inflation is the only reasonable option.
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Unions seek 3% pay increase in 2000, article.
