Crisis in social dialogue due to anti-crisis measures

For the first time during the current economic crisis, tensions between the Belgian social partners reached an impasse. The conflict was attributed to a row over the harmonisation of the employment status of blue-collar and white-collar workers, which is linked to the prolongation of existing anti-crisis measures. In the end, the government intervened to help resolve the situation and a resumption in negotiations was planned for mid March 2010.

Tensions between the Belgian social partners rose to seriously high levels for the first time during the current economic crisis. The difficulties started at the beginning of December 2009 and are linked to a row over the harmonisation of the employment status of blue-collar (arbeider/travailleur) and white-collar workers (bediende/employé) (BE0701019I, BE0003307F).

Anti-crisis measures

In April 2009, the Belgian government and social partners finally agreed on an additional crisis scheme, especially for white-collar workers (BE0906029I). Although the scheme has not been labelled ‘temporary unemployment’, the three measures adopted allow for a crisis-related reduction in working hours, a crisis time credit system and collective suspension from work. The first measure is available to all companies, while the other two can only be implemented by companies in financial difficulties.

The trade unions were reluctant to support these measures fully. In an effort to convince the unions to accept the provisions, the employers gave a renewed promise to try to reach an agreement on the harmonisation of the Belgian employment status of blue-collar and white-collar workers. Considerable progress should have been made before the end of 2009 on this pending issue. Such progress was considered key to prolonging the anti-crisis employment measures of April 2009.

Impasse over harmonisation issue

The question of harmonisation gained even greater priority in the autumn of 2009, when the list of large downsizing operations by major companies started to increasingly dominate the socioeconomic news of the country – namely, the international courier DHL, the German-based chemical and pharmaceutical company Bayer, Janssen Pharmaceuticals, the brewer AB Inbev and especially the car manufacturer Opel. The Federal Planning Bureau (Bureau fédéral du Plan) estimated that another 90,000 jobs could be lost in 2010. A central point of the harmonisation discussion is the difference in severance pay and termination notice rules between the blue-collar and white-collar employment statute. Blue-collar workers get, on average, a dismissal package of three months’ pay, whereas white-collar workers get up to 20 months of severance pay, depending on the number of employment years. Blue-collar workers have been hardest hit by the current economic crisis.

The negotiations on the harmonisation rules finally broke down in mid December. The national employer organisations and trade unions advanced no further than issuing divided advice in the National Labour Council (Conseil National du Travail/Nationale Arbeidsraad, CNT/NAR) on the possible prolongation of the April anti-crisis measures by the federal government during 2010.

First trade union demonstration

The socialist and liberal trade unions reacted to the breakdown in talks by quickly organising a demonstration on 12 December 2009. A key demand of the protest was a better dismissal package for blue-collar workers. Altogether, some 4,000–5,000 people took part in the demonstration. However, the Christian Trade Union Federation (Algemeen Christelijk Vakverbond/ Confédération des syndicats chrétiens, ACV/CSC) did not join the demonstration, as it believed that it was too soon for this type of action.

Unilateral extension of anti-crisis measures

In response to the blocked negotiations and rising unrest, the Belgian government decided to unilaterally – due to the lack of consensus – extend the measures that had been taken in April 2009 to combat the economic crisis. The anti-crisis measures are intended to safeguard employment and will stay in place until June 2010. As already stated, they include the decision to allow white-collar workers to temporarily receive social benefits because of insufficient work.

Crisis premium for blue-collar workers

However, the government also introduced a new measure (in Dutch) targeted at blue-collar workers facing collective redundancy. Blue-collar workers who are dismissed will get a special redundancy payment of about €1,600. The measure was taken at the request of the Belgian trade unions and under the following conditions.

• If an employer wishes to dismiss a blue-collar worker during the period 1 January 2010 to 1 July 2010, the employee is entitled, along with the ordinary termination indemnities, to an additional dismissal indemnity – the so-called crisis premium.

• This crisis premium is granted unless: the blue-collar worker resigns; the worker has been dismissed during a collective dismissal procedure; the worker has been dismissed during an initial trial period; or the worker has been dismissed to take up their pension or bridge pension.

• The crisis premium amounts to €1,666 for full-time workers; part-time workers will receive a crisis premium in accordance with the actual time worked. The employer will be liable to pay €555 of the crisis premium, while the remaining €1,111 will be paid by the National Employment Office (Rijksdienst voor Arbeidsvoorziening/Office National de l’Emploi, RVA/ONEM). The amount of €555 must be paid as soon as the employment contract effectively ends. The payment will not be subject to taxation or any social security levies.

• In some cases, the employer does not even have to pay this amount, that is: if one of the temporary crisis measures is applicable within the company, for example the crisis time credit or temporary collective working time reduction; if the blue-collar worker has been temporarily unemployed – corresponding to four weeks of temporary unemployment for workers with less than 20 years of seniority, or eight weeks for workers with at least 20 years of seniority; or if it is a small business of fewer than 10 employees faced with economic problems and has requested an exemption.

• If, however, the employer fails to notify the termination to the RVA/ONEM, the employer will be liable for the entire amount of €1,666.

When the government adopted these renewed and extended anti-crisis measures, it also asked the social partners to continue their talks on the harmonisation of the regulations governing white-collar and blue-collar workers.

Open conflict in January 2010

However, the government’s aspiration was not put into practice. On the contrary, during the first few months of 2010, the conflict over the harmonisation issue exacerbated, culminating in each side almost openly blaming the other for the standstill and for not pursuing the goal of economic recovery and jobs.

Employers’ petition

At the end of January 2010, the employers launched a united petition campaign – under the slogan ‘Let us entrepreneur: Enterprise is the motor of the economy, why put on the brakes? (in Dutch and French)’ – comprising the main employer organisations and led by the Belgian Federation of Employers (Fédération des Entreprises de Belgique/Verbond van Belgische Ondernemingen, VBO/FEB). Some 22,000 entrepreneurs signed the petition, which contained the following demands:

• no more taxes, less administrative burdens and intersectoral bargaining focused on competitiveness;

• a review of conditions for workers and salaried employees, with a view to harmonising them into a single status. Companies would have more flexibility in laying people off, but the government would also remove the tax burden on redundancy payments and make more of an effort to help those made redundant to secure new jobs;

• a change in the current system, whereby, according to the employer organisations, persons aged over 55 years – the most experienced workers – have a greater incentive not to work than to work;

• the promotion of innovation and the ‘greening’ of the economy (see the Belgian contribution to the EIRO comparative study on Greening the European economy).

Mass trade union demonstration

A couple of days later, on 29 January 2010, the trade unions also established a united front, organising a mass demonstration in Brussels, led by ACV/CSC, the Belgian General Confederation of Labour (Algemeen Belgisch Vakverbond/ Fédération Générale du Travail de Belgique, ABVV/FGTB) and the Federation of Liberal Trade Unions of Belgium (Algemene Centrale der Liberale Vakbonden van België/Centrale Générale des Syndicats Libéraux de Belgique, ACLVB/CGSLB). Between 25,000 and 35,000 demonstrators sent an urgent signal of their demand for more jobs and greater respect for workers. The issue of a decent dismissal right for blue-collar workers was once again highlighted, along with a demand to ease the current controls regarding unemployed people, as the trade unions claim that they cannot meet the employment activation demands.

At the head of the demonstration were workers from the Opel plant in Antwerp. In the previous weeks, the workers had received further confirmation that the plant would be fully closed in the near future.

Government intervention

Directly after this open conflict, which was widely discussed in the media, the government decided to intervene. On 8 February 2010, the Belgian Prime Minister, Yves Leterme of the Flemish Christian Democratic Party (Christen-Democratisch en Vlaams, CD&V), held talks with representatives of the employers and the trade unions. The separate meetings were held in an effort to launch a new round of national social dialogue and to ‘unlock’ the disagreement about the harmonisation of the employment status of blue-collar and white-collar workers.

After the meeting with the trade unions, Prime Minister Leterme emphasised the importance of social dialogue for the Belgian economy (see statement (in French), 8 February 2010). He added: ‘Of course there are differences, but it is up to the government to close the gap.’

It is hoped that an agreement on the harmonisation of regulations for blue-collar and white-collar workers will be reached by June 2010. At this point, the government also plans to discuss the new extension of anti-crisis measures taken to boost the economy. After the summer holiday period, talks will focus on a possible increase in social benefits. Negotiations about a new two-year collective agreement for the entire private sector will also start during the second half of the year.

After the talks with Prime Minister Leterme, all of the parties confirmed their eagerness to resume negotiations. Informal talks started straight away, while the resumption of real negotiations was planned for mid March.

Guy Van Gyes, Higher Institute of Labour Studies (HIVA), Catholic University of Leuven (KU Leuven)