Banking unions split, construction negotiations deadlocked

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Negotiations are not running smoothly in some sectors during the Netherlands' 1999 bargaining round. One of the trade unions representing banking workers angered the other unions in the sector by putting the employers' final bid to its members in March 1999. Meanwhile, negotiations in the construction sector ground to a halt again, rasing the possibility that the sector could be without a collective agreement as of 1 April.

Dutch banking trade unions are deeply divided over the latest wage offer made by employers in March 1999 in negotiations over a new collective agreement for the sector. The largest union in the sector, FNV Bondgenoten, decided to put the offer, which would run for 15 months, to its members without any particular recommendation. The other three unions involved - De Unie, CNV Dienstenbond and BBV- have rejected the offer. The unions' original demand entailed a 4.5% wage increase for the sector's 115,000 employees from 1 January 1999. The employers' association is now offering 3% from 1 July 1999 and another 0.5% from 1 January 2000.

Formally, endorsement by FNV Bondgenoten would be sufficient to arrive at a legally valid collective agreement for the sector. This partly explains the other unions' harsh reaction to the decision by FNV Bondgenoten to put the offer to its members. The four unions still gave an impression of unanimity at a demonstration held by banking sector employees on 6 March.

Meanwhile, negotiations in the construction sector once again ground to a halt on 10 March 1999. Employers broke off talks after the unions rejected their final offer. As a result, the sector was due to be without a collective agreement as of 1 April. The employers' association for the construction sector has vouched for its members' compliance with the conditions specified in their final offer. This would mean a 2% wage increase for employees. The unions are steadfast about their demand for a 3.5% increase.

The structure of the collective agreement continues to be a major stumbling block. Employers are advocating a framework agreement, the details of which could then be further specified for each subsector or even perhaps for each individual company. The unions have announced that their representatives will be visiting construction sites to take stock of their members' willingness to strike.