van het Kaar, Robbert

Pension-related issues have featured strongly in the 2005 collective bargaining round in the Netherlands, as they did in 2004. Employers are cutting the costs of early retirement schemes and at a number of companies pension risk is being shifted towards the employees. Meanwhile, the financial position of occupational pension funds has improved significantly, while the government has announced its intention to introduce a new Pension Act.

The Dutch government is pursuing a restrictive policy on the free movement of workers from the new EU Member States in central and eastern Europe. Despite this, over 2004-5 their numbers have swelled - especially those from Poland. The restrictive policy is also leading to increasing numbers of self-employed individuals and illegal workers. Recent legislation means that all employees seconded from abroad will henceforth fall within the scope of Dutch collective agreements.

The EU’s European employment strategy [1] was revised in 2003 (EU0308205F [2]), following demands for a more results-oriented strategy contributing successfully to the targets for more and better jobs and an inclusive labour market set at the Lisbon European Council in 2000 (EU0004241F [3]). To support the three objectives of full employment, quality and productivity at work and cohesion and an inclusive labour market, the current employment guidelines [4] identify 10 priorities ('commandments'), including one on 'promoting adaptability of workers and firms to change'. This identifies work organisation (alongside skills, lifelong learning and career development, gender equality, health and safety at work, flexibility and security, inclusion and access to the labour market, work-life balance, social dialogue and worker involvement, diversity and non-discrimination, and overall work performance) as an element in improved quality at work, which should be pursued through a concerted effort between all actors and particularly through social dialogue. [1] http://europa.eu.int/comm/employment_social/employment_strategy/index_en.htm [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/2003-employment-guidelines-and-recommendations-adopted [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-social-policies/lisbon-council-agrees-employment-targets [4] http://europa.eu.int/comm/employment_social/employment_strategy/guidelines_en.htm

A new law on law on supervisory boards in larger companies took effect in the Netherlands on 1 October 2004. This law changes the role of works councils in nominating members of supervisory boards, and has several other implications for the balance of power between shareholders, management and works councils.

On 21 September 2004, the Dutch government presented its plans for the coming year. The proposals have proved controversial, especially those relating to early retirement, occupational disability insurance and compensation for dismissal. Employers are critical and the trade unions have stepped up their campaign against the government’s policy.

Developments in recent years have challenged the Dutch occupational pensions system. Employers and employees are being confronted by rising contributions, eating into the scope for pay increases and placing pressure on collective bargaining. At the same time the absolute power of the social partners in running pension funds is being challenged by pensioners, causing an increasing number of disputes. This article reviews the situation in autumn 2004.

In summer 2004, the Dutch government announced plans to phase out tax incentives for early retirement and introduce instead a 'life-span leave arrangement', enabling employees to accumulate a proportion of their pay to finance long-term leave for a variety of purposes (eg care duties, training or retiring earlier). Despite a critical response from trade unions, employers and occupational pension funds, the government appears set on pushing through its key proposals.

The phenomenon of undeclared work - defined as 'any paid activities that are lawful as regards their nature but not declared to the public authorities'- is an issue which has been preoccupying the EU institutions for a number of years. In 1998, the European Commission issued a Communication [1] on undeclared work, which was designed to launch a debate on the causes of such work and the policy options for combating it (EU9804197F [2]). It suggested that there was a need to clarify the causes and extent, and concluded that combating undeclared work should be part of the overall European employment strategy [3]. [1] http://europa.eu.int/comm/employment_social/employment_strategy/index_en.htm [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/commission-targets-undeclared-work [3] http://europa.eu.int/comm/employment_social/employment_strategy/index_en.htm

In August 2004, the Netherlands' three main trade union federations launched a programme of protest action against government policy on a variety of issues, notably early retirement and lifelong leave arrangements. The planned action includes a strike on 21 September.

In August 2004, a court ruled against a plan by Smead Europe, the Dutch subsidiary of a US-owned office supplies group, to increase weekly working hours from 36 or 38 to 40 at two plants, with no increase in pay. According to the court, such an extension would contravene the applicable sectoral collective agreement.