The Dutch social partners are extremely critical of the government’s budget for 2006, presented at the opening of parliament in September 2005. The government had promised that 2006 would be a year of reaping the rewards of previous efforts. Instead it appears that employers and employees will again lose ground in financial terms. Employers are alarmed at the unexpected additional cost of a new healthcare system and employees will see their spending power diminish in relative terms.
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The Dutch social partners are extremely critical of the government’s budget for 2006, presented at the opening of parliament in September 2005. The government had promised that 2006 would be a year of reaping the rewards of previous efforts. Instead it appears that employers and employees will again lose ground in financial terms. Employers are alarmed at the unexpected additional cost of a new healthcare system and employees will see their spending power diminish in relative terms.
The social partners are both critical of the cabinet’s budget for 2006. True to tradition, this was presented on the third Tuesday in September, when the parliamentary year is officially opened by the Dutch queen. While cabinet had promised that 2006 would be a year of harvest, it became clear on 20 September 2005 that employees would again lose ground and that employers would have to pay more.
In broad terms, employers support the policy. As expressed by the VNO-NCW representative, they do however, feel that the government must turn the tide on the increased burden imposed on companies by factors such as the new healthcare system and higher energy prices. VNO-NCW estimates a cost increase for the business sector of at least EUR 1 billion as a consequence of the new healthcare system alone, while cabinet had assured employers that its introduction would generate no additional costs. Employers were also dissatisfied with the division of additional income from natural gas. These revenues should have been ploughed back into genuinely reinforcing the economy structurally, as exemplified by the road network.
Even the small and medium-sized business sector, represented by MKB-Nederland (Midden en KleinBedrijf-Nederland), is critical. The organisation anticipates an increased burden for the small and medium-sized business sector of around EUR 175 million a year. By contrast, MKB-Nederland is in fact calling for a decrease in labour costs for employers by lowering the employer’s share in social contributions.
The Dutch Trade Union Federation (Federatie Nederlandse Vakbeweging, FNV) and the Christian Trade Union Federation (Christelijk Nationaal Vakverbond, CNV) are also extremely critical. They are of the opinion that the cabinet’s policy stands in the way of cautious economic recovery rather than promoting it. Both federations agree that the spending power of all citizens, not only of the employees, is important. FNV would like to see cabinet compensate for the negative impact on earnings of the healthcare system and the high energy prices. While FNV hopes to achieve a wage increase of 1.5%, CNV is urging for 2%, which would be just enough to compensate for the estimated price increase. Additionally, FNV is challenging the cabinet’s spending power calculations: diminished rental subsidies have not been taken into account. CNV, which initiated industrial action in recent weeks for an increase in spending power of at least EUR 500 for each household, now wants cabinet to compensate lower and mid-bracket earners for the rising cost of energy. The demands will be tabled during the autumn consultations with cabinet when other issues such as measures for greater employment security and to combat unemployment amongst the youth will also be addressed.
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Eurofound soovitab viidata sellele väljaandele järgmiselt.
Eurofound (2005), Social partners critical of government’s budget, article.
