effect of economic crisis on dutch collective bargaining tuesday 23 february 2010 employers...

Effect of economic crisis on Dutch collective bargaining

Tuesday 23 February 2010

Employers perspectiveAWVN

Laurens Harteveld

Werkt voor werkgevers

French delegation 2

Structure

1. Social dialogue2. Crisis in 20093. Recent trends

23 February 2010

1. Social dialogue in the Netherlands

Collective bargaining at central and decentral

levels


Levels of industrial relations in The Netherlands

central agreements (social dialogue)

sectoral collective agreements

company collectiveagreements

union federation

employers’ federations

unions employers’ organisations

unions employer

individual labourcontracts

employee

works council

Government

23 February 2010 4French delegation


Employers’ organisations and unions

• Unions:– FNV (General Federation of Dutch Unions)– CNV (Christian Federation of Unions)– MHP (Middle/Higher Level Employees)

• Employers:– VNO-NCW (General Federation of Dutch

Employers’ Organisations)– MKB Nederland (Small and Middle sized

Companies)– LTO (Farmers’ Organisation)



LAURENS AWVN

CHRIS FNV





union federation



unions employer


employee

works council

Government







union federation



unions employer


employee

works council

Government



Bi/tripartite structure

• Social Economic Council (advisory; not binding)

• Labour Foundation (Spring/Autumn consultation; not binding)

• Balance between legislative role government and self regulation social partners (collective bargaining; social policy)



Purposes central social dialogue

• Mutual problem recognition and solving• To create broad support for new policies• General agenda setting for collective

bargaining• Co-ordination decentral levels of industrial

relations and collective bargaining







union federation



unions employer


employee

works council

Government



Legal Framework collective bargaining:

• Collective Agreements Act 1927• Extension of Collective Agreements Act

1937

• ILO Convention 87 (freedom of association)

• ILO Convention 98 (freedom of collective bargaining)



Coverage and union representation

83

25

17

75

collective bargaining coverage union density



23 February 2010 French delegation

CLA’s in The Netherlands in 2009

Number of CLA’s

Number of employees

Company-level CLA’s

558 (75%) 594.500 (10%)

Branch-level CLA’s 190 (25%) 5.555.000 (90%)(855.500 by extension = 14%)

Total 748 6.149.500Source: Ministry of Social Affairs and Employment, June 2009

13

2. Crisis in 2009

Impact of the “Spring Pact” on Collective

Bargaining Processes


French delegation 15

CA-cycle 2009 in theory

Prinsjesdag 2008: Government policy 2009

and forecasts 2009

Autumn 2008: Central deal?

December 2008-October 2009:CA negotiations

September 2008: Concept federation

strategy 2009

1

2

3

4

23 February 2010



CA-cycle 2009 in reality

Prinsjesdag 2008: Forecasts: 1,25% growth in 2009

Autumn Pact:Wage demand

max 3,5%

December 2008-October 2009:Declining wages 3,5% → 1%

1

2

3

4

Fall of Lehman Brothers

Spring Pact

23 February 2010


23 February 2010 French delegation 17

Spring Pact (2009)

• Wage increase approximately level of inflation (prediction 2009 = 1%)

• If more financial budget available, than:– Employment – Training – Pension



Practice

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

o n d j f m a m j j a s o n d j

Spring Pact



Conclusions

Conclusions 2009 • Season with uncommon changes• Complicated / difficult but sharp turn• High level of (short term) adaptability• Negotiations not easier:

– Impact on bargaining agenda and range of possible outcomes

– Lack of sense of urgency



• Social Pacts are only effective if external effects are internalized by all employers and employees, …..

• Also (or especially) employers and employees who are not (yet and/or fully) affected by the crisis.

3. Recent trends in 2010



CA-cycle 2010


and forecasts 2010




strategy 2010

1

2

3

4

23 February 2010

Context season 2010: crisis 2009

2009: Largest economic decline (-4%) in 110 years

1,50

7,506,50

1,25 1,25

-0,75

2,00

5,50

6,50

1,50 1,50

-0,50

-4,70-6%

-4%

-2%

%

2%

4%

6%

8%

Growth World trade Unemployed Wages Inflation Purchasing power

EMU-balance

2008 2009 2010 estimation 2010 estimation

-6,1



CA-cycle 2010


and forecasts 2010




strategy 2010

1

2

3

4

23 February 2010



Government policy 2010

Postponed (but inevitable and necessary) cuts:• Protect households at the expense of higher

government deficit• Modest investments in 2010• Studying on future measures to reduce

government debt €35 billion (20 commissions)

• If growth in 2011 then start cuts

23 February 2010



CA-cycle 2010


and forecasts 2010



September 2009: Federation

strategy 2010

1

2

3

4

23 February 2010



Federation strategy 2010

FNV: • Maintain purchaging power in 2010• Wage demand of 1,25% + work deals, else

2%

AWVN:• Short term: recession• Long term: labour market shortage

Strategy 2010

23 February 2010



I. Sustainable employability Healthy employees

II. Flexibility

Healthy organisation

III. Sustainable wage costs

AWVN strategy 2010

23 February 2010



Healthy

emplo-yees

I. Sustainable employability

Inter-nal

- Education- Health policy- Life cycle policy

Exter-nal

- Diversity

Healthy

organi-sation

II. Flexibility (19%)- Flexible working patterns /mobility- More productive hours

III. Sustainable wage costs- Sustainable wage costs- Incidental instead of structural increase- Sustainable solutions pension funds

23 February 2010



CA-cycle 2010


and forecasts 2010


1

2

3

4

No Autumn Summit


strategy 2010

Last Saturday: Dutch government falls

23 February 2010



CA-cycle 2010


and forecasts 2010

Results February 2010CA negotiations

1

2

3

4


strategy 2010

No Autumn Summit

23 February 2010



Agreements made so far

0,0%

0,5%

1,0%

1,5%

2,0%

nov-09 dec-09 jan-10 feb-10 mrt-10

Contractcatering ICK

Politie

PhilipsKleinmetaal

Verzekerings-bedrijf

Metalektro

DSM

TNT

MBO

BOVAG

Dagblad-journalisten

23 February 2010



• Some zero contracts in 2010: ING (1% per 1-9-11), Education, Dagbladjournalisten

• Time instead of wage: Metal sector, V&D/La Place (no increase in 2010 and 1 extra day off)

• Conditional increase: Flex-agencies• Other: temporarily no premium social fund

(Motors and bikes enterprises)


23 February 2010



Examples of employability:• Metal sector I: more course positions for 16-

and 17 aged. Maintaining professionals.• ING: Taskforce employability• IKEA: extra attention for course positions

and job rotation• Metal sector II: €30 mln. extra for education• Philips: 2 extra educational days per year


23 February 2010



First impressions 2010:• Central level:

– Divided union– Fallen government

• Decentral level:– Few agreements so far– Too much focus on wages– Coordination by unions?

Conclusions

23 February 2010



Questions?

23 February 2010



Merci!

23 February 2010

effect of economic crisis on dutch collective bargaining tuesday 23 february 2010 employers...

Documents

french delegation slide

werkt voor werkgevers

unions unions

urgency slide

dutch collective bargaining

french delegation clas

council government

bargaining agenda