Government relaunches social dialogue

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In February 2002, the Belgian federal government agreed 21 economic and social priorities to be achieved by the end of the current legislature in mid-2003. A number of these measures should be taken up in the social partners in negotiations over a new intersectoral agreement for 2003-4, and Prime Minister Guy Verhofstad has launched dialogue with the partners over these matters.

With the current legislature due to end in mid-2003, on 18 February 2002, the Belgian federal government - made up of Liberal, Socialist and Ecologist parties - adopted a document setting out 21 socio-economic priorities for the remainder of its term. The aim is to address five structural problems:

• wage costs;

• fiscal charges:

• the rate of employment;

• labour market flexibility; and

• new technology.

The government's 21 priorities are as follows:

1. presenting a balanced budget, or even one with a small surplus, at the end of 2002;

2. completing the work of the current 'round table on social solidarity' so as to be able to implement social protection proposals from January 2003 onwards;

3. improving the positions of self-employed workers;

4. uprating the lowest social security benefits;

5. pursuing healthcare reforms;

6. reducing social security contributions by up to EUR 250 million from 1 April 2002 onwards (including measures aimed at promoting the employment of those aged under 25 and over 50), and harmonising the 24 existing recruitment schemes from 2003 onwards;

7. raising the rate of employment among older workers;

8. giving new incentives to unskilled people to encourage them to enter the labour market;

9. raising the rate of employment among women;

10. increasing labour market participation among young people;

11. introducing a system of vouchers for the provision of local services to households;

12. inviting the social partners to discuss four matters (with a view to incorporating them into the intersectoral agreement for 2003-4) - the unfavourable development in wage costs, the effects of reducing social security contributions, making the labour market more flexible and expanding training in enterprises;

13. reducing the rate of company taxation from 40.17% to 34%;

14. encouraging employee stock options via taxation;

15. encouraging new technology;

16. stimulating research and development;

17. accelerating the simplification of administrative processes;

18. avoiding industrial action;

19. encouraging 'ethical investment' via taxation;

20. drawing up an environmentally-friendly tax régime (including a 'green VAT'); and

21. fighting tax fraud.

The social partners have given the government's intentions a lukewarm reception. The Federation of Belgian Enterprises (Fédération des Entreprises de Belgique/ Verbond van Belgische Ondernemingen, FEB/VBO) takes the view that although the government's diagnosis is persuasive, the measures announced are less so. In particular, the employers criticise the fact that the issue of the promised structural reduction in social security contributions has again not been addressed. They are also unhappy that, as far as job promotion is concerned, the accent is solely on 'stimulation measures' for target groups.

The Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond, FGTB/ABVV) too, was dissatisfied. In particular, it noted that the lowest social security benefits will only be uprated if the economic situation permits. The Socialist FGTB/ABVV demands an uprating of all pensions and benefits, particularly through a linkage to living standards. It is also still worried about the government's intentions concerning early retirement and labour market flexibility.

Lastly, the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) believes that the government's document is too liberal, and offers little hope for social benefits and the lowest rates of pay. Taking its lead from FGTB/ABVV, the Christian union confederation criticises the link between an uprating of benefits and the economic situation.

On 5 February, the government met representatives of employers and unions to clarify the tasks given to the social partners under its new programme. 'In the coming months, government activity and collaboration between the government and the social partners at the level of socio-economic policy will be intense,' Prime Minister Guy Verhofstad said at the end of the meeting. The employers fear that the government initiative conceals an attempt by it to 'supervise social dialogue'; this fear is also shared by leaders of FGTB/ABVV and CSC/ACV. The employers' associations and unions have stated that negotiation of a new intersectoral agreement for 2003-4 (to replace the current two-year accord - BE0101337F) relies on the social partners being autonomous. Talks over the agreement, which should be concluded by the end of the year, are unlikely to begin before autumn 2002.

The social partners were due to meet the government again on 5 March to take stock of various analyses currently underway as a result of the government's proposals (on wage costs, the effects of reducing social security contributions, flexibility and training). The social partners have drawn up a joint note under the aegis of the Central Economic Council (Conseil Central de l'Économie / Centrale raad voor het bedrijfsleven, CCE/CRB), setting out a diagnosis of movements in wage costs. They have also concluded a draft agreement on three sensitive issues:

• regulating collective labour disputes (BE0110310N);

• harmonising recruitment schemes; and

• harmonising the statuses of blue- and white-collar workers (BE0003307F).

This draft agreement still has to be submitted to the governing bodies of the employers' associations and the trade unions.