Union backs Labour Party proposal for quota for women in management positions

In April 2008, Labour Party representatives were due to present a legislative proposal to statutorily establish a quota system for the number of women in private-sector management positions. The parliamentary group will be compelled to take such steps if the so-called Frijns Committee fails to propose targets in this respect. Although the proposal is supported by trade unions, it is has failed to generate support from the Christian Democratic Appeal party and employers.

In April 2008, representatives of the Labour Party (Partij van de Arbeid, PvdA) were due to present an ‘initiative’ legislative proposal to the Dutch House of Representatives (Tweede Kamer der Staten-Generaal) to establish a quota system for the number of women in management positions in the private sector. Although the representatives still support self-regulation in the business community, they expect that little more will be achieved in this respect. In fact, they would like to see the Dutch Corporate Governance Code – also known as the Tabaksblat Code – to be supplemented by provisions governing efforts to appoint more women to positions in management and on supervisory boards.

However, while the [Monitoring Committee of the Corporate Governance Code](http://www.commissiecorporategovernance.nl/Information in English) (the so-called ‘Frijns Committee’) – whose remit is to evaluate policy on management executives and remuneration on an annual basis (NL0802049I) – is expected to report on this matter once again in May and is free to adopt the PvdA’s recommendation. Nonetheless, it seems unlikely that the committee will adopt any amendments. For this reason, the PvdA representatives are upholding their legislative proposal as an incentive to impose a mandatory quota system, thereby achieving greater gender equality in the labour market.

Quota system based on Norwegian model

In its legislative proposal, the PvdA recommends introducing a fixed quota system based on the Norwegian model. Effective from 1 January 2008, the Norwegian model stipulates that a minimum of about 40% of both sexes should be represented on the board of all listed companies in Norway (NO0801029I). It is likely that the PvdA will propose a lower target rate for the Netherlands in this respect, although it believes that the current figure of 6% for women is worryingly low. This fact is further substantiated by comparisons within the European Union, which place the Netherlands below the EU average in terms of the proportion of women in managerial positions (see also the 2007 EIRO comparative study on Gender and career development, as well as the Dutch national contribution). Moreover, this figure has changed little over the years, pointing towards static relations and developments in this context.

Divided response to quota proposal

The Dutch Trade Union Federation (Federatie Nederlandse Vakbeweging, FNV) has also expressed its support for the introduction of a quota system for women in private-sector management positions. FNV is hoping to generate support from other government parties, since such support appears to have helped in other policy areas. However, the largest government party, the Christian Democratic Appeal (Christen Democratisch Appèl, CDA), has not been forthcoming in its support. The CDA considers that assigning quotas is inappropriate in the Netherlands. The party does, nonetheless, wish to reach agreements in this area with businesses. Accordingly, companies that attract large numbers of women could be rewarded in some way for their efforts.

FNV sets target date

At present, FNV seems to be going one step further than PvdA by setting a target date in addition to a target quota for women in private-sector management positions. Accordingly, the trade union federation is proposing that, by 2012, women should occupy 40% of all higher management positions in the private sector. In order to achieve this quota, companies and institutions should be obliged to introduce a policy of affirmative action for women. While FNV looks beyond higher management positions in its plans, it considers that this level is the breeding ground for management positions. Even at this level of management, the Netherlands scores below the European average, at 25% of female managers compared with 33% respectively. Above the level of higher management, the ratio for women was 1 to 20 on management boards and 1 to 10 on supervisory boards in 2007, according to a survey conducted by the headhunter consultancy company, Woman Capital, in early 2008. Thus, it seems that favourable intentions in relation to women’s employment in private sector management positions have not remedied the situation in any significant way over the past 25 years. The aforementioned Norwegian model appears to be emerging as an example of good practice in this respect, with other EU countries such as Spain and Denmark making efforts to implement this model.

Employers’ position

For its part, the Confederation of Netherlands Industries and Employers (Vereniging van Nederlandse Ondernemingen-Nederlands Christelijk Werkgeversverbond, VNO-NCW) has not adopted an explicit position on this issue. Traditionally, since the organisation supports self-regulation, it is likely to reject any mandatory legislative proposal; even a legislative proposal to adopt a quota system is unlikely to attract VNO-NCW’s support. Nevertheless, whether it would like to see such a regulation adopted in its own Tabaksblat Code remains to be seen. At the same time, VNO-NCW asserts that the pace at which work must be conducted at top management levels is not attractive to women. Within the scope of the discussion, VNO-NCW again highlights the importance of putting in place more favourable conditions: in particular, the employer organisation underlines the need for more and better childcare facilities, and for placing greater value on part-time jobs at higher management levels, as well as other levels in the business community.

Marianne Grünell, Hugo Sinzheimer Institute (HSI)