In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
This article gives a brief overview of the industrial relations aspects of the topic of unskilled workers and unskilled work in the Netherlands, as of February 2005. It looks at: national definitions of unskilled workers or work; the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework; trade union organisation among unskilled workers; pay and conditions; recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining.
In recent years, labour market developments have altered the demand for labour. Increasingly, employers are looking for adaptable workers, with more 'transversal' and 'relational' competences. The nature of skills required to be considered efficient in a job has thus evolved. In this situation, there is a growing risk of exclusion among unemployed workers whose profiles do not match the job characteristics needed, while the low-skilled or unskilled workforce is more at risk of unemployment.
In this context, in February 2005 the EIRO national centres were asked, in response to a questionnaire, to give a brief overview of the industrial relations aspects of the topic of unskilled workers. The following distinctions are used, where applicable:
(a) an unskilled job is a job which requires, for its proper execution, hardly any formal education and/or training and/or experience;
(b) a worker in an unskilled job is a worker doing such a job, irrespective of their level of qualifications or competences (especially under conditions of high unemployment, a significant share of those occupying unskilled jobs may be 'overeducated' for them, or 'underemployed'); and
(c) an unskilled worker is someone who has only the lowest level of qualifications or education (however defined).
The questionnaire examined: national definitions of unskilled workers or work, including those used or provided in laws, statistics or collective agreements; figures or estimates on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work; employment and unemployment among unskilled workers; the regulatory framework, including any specific laws or collective agreements, and trade union organisation among unskilled workers; the pay and conditions of unskilled workers and workers in unskilled jobs, or for unskilled jobs; any recent initiatives to improve the situation of unskilled workers; and the views of trade unions and employers' organisations on the issue and its implications for collective bargaining. The Dutch responses are set out below (along with the questions asked).
Definitions and extent
(a) Please provide a definition of unskilled workers or work (see distinctions above) in your country. Are there any definitions provided in laws, statistics or collective agreements?
Unskilled workers are referred to as 'workers without a starting qualification' (startkwalificatie), defined as 'a professional qualification that gives the worker the possibility to enter the labour market as well as a basis for further development during the professional career' (Ministry of Education, Culture and Science, 1993). The following are considered as starting qualifications:
a certificate of higher general secondary education (HAVO);
a certificate of pre-university education (VWO); and
a certificate of intermediate vocational education (MBO) at level 2, that is the level of a 'basic skilled worker'.
For policy purposes, the Ministry of Education, Culture and Science identifies three categories of persons without a starting qualification:
'school drop-outs' (ie those leaving education early without a qualification);
people in employment without a starting qualification; and
job-seekers without a starting qualification
The Central Bureau of Statistics (Centraal Bureau voor de Statistiek, CBS) has developed a Standard Classification of Occupations (Standaard Beroepen Indeling) in which occupations are categorised on the basis of the level of education as well as the kind of skills that are needed to perform them. The following levels are distinguished:
elementary;
primary;
intermediate;
higher; and
scientific.
Both elementary occupations (involving simple duties) and primary occupations (with an initial vocational education level) can be considered as unskilled jobs.
(b) Are there any figures or estimates available on the number of unskilled workers and workers in unskilled jobs, and the extent of unskilled work. How have these figures changed in recent years - have changing skill needs or improvements in education/training systems led to a reduction in the numbers of unskilled jobs, unskilled workers and workers in unskilled jobs? Please break all figures down by gender where possible.
In 1992, 66% of the total working population had a starting qualification, a proportion that rose to 71% in 2001 (CBS figures) - 29% thus had no such qualifications. The percentage of young people aged 25-34 years with a starting qualification is a little higher, at 75% in 2001 (according to the Ministry of Education, Culture and Science). In absolute figures, around 2 million workers did not have a starting qualification in 2001.
In 1992, some 51% of job-seekers has a starting qualification, rising to 54% in 2001 - 46% were thus unskilled on this definition. In absolute figures 113,000 unemployed did not have a starting qualification in 2001, according to the Council of Work and Income (Raad voor Werk en Inkomen, RWI).
In 2002-3, a total of 90,364 'school drop-outs' were registered at the regional registration centres (RMCs), with about 10% more boys than girls. Of this group, 22.5% were reintegrated into school, compared to 2.2% in 2001-2.
The percentage of the working population that works in an elementary occupation is relatively stable. Between 1985 and 2002, this stood at 7%. The percentage of the working population that works in a primary occupation decreased between 1985 and 2002 from 34% to 24%, according to data from the Social Cultural Planning Bureau (Sociaal-Cultureel Planbureau, SCP).
At the end of the 1990s, a reform of the initial vocational training system took place. Lower general secondary education (MAVO) and initial professional education (VBO) were integrated into a single lower secondary professional education (VMBO). The SCP is currently undertaking research into the consequences of this reform for young people's success rate in achieving a starting qualification. The results of this research should be available by the end of 2005.
(c) Please provide figures on employment and unemployment rates for unskilled workers, compared with higher-skilled groups. Have unskilled workers/workers in unskilled jobs been particularly affected by industrial and company restructuring? Have new jobs created in recent years been filled by unskilled workers? Please break all figures down by gender where possible.
In general, the higher the education level of a population group, the lower the unemployment rate - see the table below. The difference in unemployment rates is especially high between people with and without a starting qualification. The unemployment rate among women is higher than among men at all levels, but this difference declines as the level of education rises.
| Highest education level | Men 30-44 | Men 25-64 | Women 33-44 | Women 25-64 |
| Lower secondary | 3.0% | 3.0% | 5.7% | 5.0% |
| Higher secondary | 1.4% | 1.6% | 3.1% | 3.1% |
| Higher/scientific | 1.6% | 1.7% | 1.7% | 2.4% |
Source: Education in key figures 1998-2002, Ministry of Education, Culture and Science, 2003.
The proportion of all job vacancies made up by elementary and primary occupations declined between 2000 and 2003 from 38% to 30%. The proportion of vacancies made up by higher and scientific occupations rose over this period from 16% to 23% and from 5% to 6% respectively.
Regulation and conditions
(a) Is there a specific regulatory framework in your country concerning unskilled workers and workers in unskilled jobs (however defined)? Are there specific laws or collective agreements? Are there specific trade union organisations for them, or are they represented in 'normal' union structures. Have there been any changes in these area reflecting the changes referred to in question (b) under 'Definitions and extent' above?
There is no specific regulatory framework - legislative or collectively agreed - for unskilled workers and workers in unskilled jobs. Unskilled workers are represented in 'normal' trade union structures.
In terms of particular measures aimed at unskilled workers, a number of legal instruments have been developed to promote the education up to starting qualification level of workers and unemployed people. These include the following:
employers receive a tax deduction in respect of employees who undertake intermediate vocational education by way of an apprenticeship, under the terms of the Income Tax Deduction Act (Wet vermindering afdracht loonbelasting en premie voor de volksverzekeringen, WVA). If the apprentice is a former unemployed person, the employer receives an extra deduction;
in the context of the arrangements for using the European Social Fund over 2000-6, EUR 650 million has been allocated for the education of workers and unemployed people up to starting qualification level; and
a 'specific tax deduction' (Specifieke Afdrachtskorting, SPAK) for low-paid workers (earning up to 115% of the statutory minimum wage) is meant to promote the employment of unskilled workers. The government has recently proposed phasing out the SPAK, but both employers and trade unions protested against these plans and the Lower House of parliament rejected the move.
(b) Please provide any figures available for the pay of unskilled workers and workers in unskilled jobs, or for unskilled jobs, and the relationship of this pay with the average or with higher-skilled groups. Do collective agreements contain specific pay grades for unskilled workers, or workers in unskilled jobs? Please break all figures down by gender where possible.
(c) Are there any differences between unskilled workers/workers in unskilled jobs and higher-skilled groups in terms of access to other benefits, social security, pensions, etc? Please break all figures down by gender where possible.
Of 89 mainly sectoral collective agreements surveyed in 2002, 36 contained specific pay grades ('introductory' grades) for newly recruited workers and 19 contained a special pay grade for workers that face a difficult position in the labour market ('target group' grades). In the standard pay grades, the lowest pay rate is on average 9.9% above the legal minimum wage. Introductory grades are on average 4.2% above the legal minimum and target group grades 1.9% above this figure.
The current government coalition parties - the Christian Democratic Appeal (Christen Democratisch Appel, CDA), the liberal Party for Freedom and Democracy (Vereniging voor Vrijheid en Democratie, VVD) and the social liberal Democrats '66 (D66) - have suggested introducing the possibility of employing long-term unemployed people without a starting qualification at a pay rate below the statutory minimum wage (NL0402102F). These people would keep their social benefits and receive a supplementary payment to bring their remuneration up to 90% of the statutory minimum wage, with the employer in exchange providing education/training up to starting qualification level. After have gained a starting qualification, the workers concerned should be employed for at least two years at a normal wage by the employer. The opposition political parties are opposed to these plans. The Secretary of State for Social Affairs and Employment has sent the plans to the RWI for an opinion, which is expected in April 2005.
Actions and views
(a) Please describe any recent initiatives taken jointly or separately by companies, public authorities (national or local) or the social partners (eg collective agreements) to address the situation and improve the situation of unskilled workers in terms of pay, working conditions, training, employability, unemployment etc.
According to the tripartite Social Economic Council (Sociaal-Economische Raad, SER), the government should develop a plan to reduce the number of people without a starting qualification. The SER recommends further developing the current system for the 'recognition of acquired competences' (Erkenning Verworven Competenties, EVC) (NL0406107S). The SER wants the government to be financially responsible for the education of every citizen up to starting qualification level. The government acknowledges its responsibility, but in addition points to the responsibility of the social partners.
An important recent measure to reduce the number of school drop-outs is the introduction, by the Regional Report and Coordination Function Act (Wet Regionale Meld- en Coördinatiefunctie, RMC-wet), of mandatory registration and reintegration into education by municipalities of all school drop-outs until the age of 23. This Act is the final piece of a policy that started at the beginning of the 1990s. It has recently been evaluated by the Ministry of Education, Culture and Science and found to be successful. Both registration and reintegration are improving.
The RWI has recommended that the government determine target figures for the number of starting qualifications to be awarded each year and proposed the following targets:
80% of the working population should have a starting qualification by 2010;
the number of school drop-outs should be cut by 50% by 2010; and
of those school drop-outs who cannot be reintegrated into education, 70% must gain a starting qualification during employment.
The Ministry of Education states that not all of the 2 million people without a starting qualification will be educated to this level. For some of them, education aimed at the retention of their current job and their adequate functioning in their current occupation is considered more appropriate.
(b) Please summarise the views of trade unions and employers’ organisations on the issue and its implications for collective bargaining.
The Labour Foundation (Stichting van de Arbeid, STAR), made up of representatives of trade unions and employers, has in 1996 and 2001 recommended to the collective bargaining parties that they should pay attention to the promotion of participation in training by specific categories of workers that are insufficiently covered until now, such as poorly qualified workers (among other categories).
A survey by the Labour Inspectorate issued in November 2004 found that 10 out of 122 collective agreements examined contained special 'employability' arrangements for employees without a starting qualification, and 29 contained such arrangements for job-seekers without a starting qualification.
Comments
The problem of the existence of a high proportion of unskilled workers in the Netherlands is acknowledged as a serious problem both by government and the social partners. Policies to reduce their number are primarily aimed at school drop-outs. As for the working population and job-seekers, measures are mainly of a fiscal nature, ie aimed at promoting the employment of unskilled workers rather than their education. Education in the course of reintegration is often limited to functional training for a specific job. (Marian Schaapman, HSI)
Eurofound recommends citing this publication in the following way.
Eurofound (2005), Thematic feature on unskilled workers, article.
