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Effect of economic crisis on Dutch collective bargaining

Effect of economic crisis on Dutch collective bargaining. Tuesday 23 February 2010 Employers perspective AWVN Laurens Harteveld. Structure. Social dialogue Crisis in 2009 Recent trends. 1. Social dialogue in the Netherlands. Collective bargaining at central and decentral levels.

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Effect of economic crisis on Dutch collective bargaining

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  1. Effect of economic crisis on Dutch collective bargaining Tuesday 23 February 2010 Employers perspective AWVN Laurens Harteveld

  2. Structure • Socialdialogue • Crisis in 2009 • Recent trends French delegation

  3. 1. Social dialogue in the Netherlands Collective bargaining at central and decentral levels

  4. Levels of industrial relations in The Netherlands Government central agreements (social dialogue) union federation employers’ federations sectoral collective agreements employers’ organisations unions company collective agreements unions employer works council individual labour contracts employee French delegation

  5. 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) French delegation

  6. Levels of industrial relations in The Netherlands Government central agreements (social dialogue) CHRIS FNV union federation employers’ federations employers’ organisations sectoral collective agreements LAURENS AWVN unions company collective agreements unions employer works council individual labour contracts employee French delegation

  7. Levels of industrial relations in The Netherlands Government central agreements (social dialogue) union federation employers’ federations sectoral collective agreements employers’ organisations unions company collective agreements unions employer works council individual labour contracts employee French delegation

  8. 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) French delegation

  9. 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 French delegation

  10. Levels of industrial relations in The Netherlands Government central agreements (social dialogue) union federation employers’ federations sectoral collective agreements employers’ organisations unions company collective agreements unions employer works council individual labour contracts employee French delegation

  11. 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) French delegation

  12. Coverage and union representation French delegation

  13. CLA’s in The Netherlands in 2009 Source: Ministry of Social Affairs and Employment, June 2009 French delegation

  14. 2. Crisis in 2009 Impact of the “Spring Pact” on Collective Bargaining Processes

  15. Prinsjesdag 2008: Government policy 2009 and forecasts 2009 December 2008-October 2009: CA negotiations 1 Autumn 2008: Central deal? September 2008: Concept federation strategy 2009 2 CA-cycle 2009 in theory 4 3 French delegation

  16. December 2008-October 2009: Declining wages 3,5% → 1% Prinsjesdag 2008: Forecasts: 1,25% growth in 2009 1 Autumn Pact: Wage demand max 3,5% 2 CA-cycle 2009 in reality 4 Spring Pact 3 Fall of Lehman Brothers French delegation

  17. Spring Pact (2009) • Wage increase approximately level of inflation (prediction 2009 = 1%) • If more financial budget available, than: • Employment • Training • Pension French delegation

  18. Practice Spring Pact French delegation

  19. 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 French delegation

  20. 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. French delegation

  21. 3. Recent trends in 2010

  22. December 2009-October 2010: CA negotiations Prinsjesdag 2009: Government policy 2010 and forecasts 2010 1 Autumn 2009: Central deal? September 2009: Concept federation strategy 2010 2 CA-cycle 2010 4 3 French delegation

  23. Context season 2010: crisis 2009 2009: Largest economic decline (-4%) in 110 years

  24. December 2009-October 2010: CA negotiations Prinsjesdag 2009: Government policy 2010 and forecasts 2010 1 Autumn 2009: Central deal? September 2009: Concept federation strategy 2010 2 CA-cycle 2010 4 3 French delegation

  25. 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 French delegation

  26. December 2009-October 2010: CA negotiations Prinsjesdag 2009: Government policy 2010 and forecasts 2010 1 Autumn 2009: Central deal? September 2009: Federation strategy 2010 2 CA-cycle 2010 4 3 French delegation

  27. 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 French delegation

  28. AWVN strategy 2010 I. Sustainable employability Healthy employees II. Flexibility Healthy organisation III. Sustainable wage costs Fit de recessie uit! French delegation

  29. French delegation

  30. December 2009-October 2010: CA negotiations Prinsjesdag 2009: Government policy 2010 and forecasts 2010 1 2 CA-cycle 2010 Last Saturday: Dutch government falls 4 3 September 2009: Federation strategy 2010 No Autumn Summit French delegation

  31. Results February 2010 CA negotiations Prinsjesdag 2009: Government policy 2010 and forecasts 2010 1 2 CA-cycle 2010 4 3 September 2009: Federation strategy 2010 No Autumn Summit French delegation

  32. Agreements made so far French delegation

  33. Agreements made so far • 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) French delegation

  34. Agreements made so far 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 French delegation

  35. Conclusions First impressions 2010: • Central level: • Divided union • Fallen government • Decentral level: • Few agreements so far • Too much focus on wages • Coordination by unions? French delegation

  36. Questions? Fit de recessie uit! French delegation

  37. Merci! Fit de recessie uit! French delegation

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