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

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Presentation on theme: "Effect of economic crisis on Dutch collective bargaining Tuesday 23 February 2010 Employers perspective AWVN Laurens Harteveld."— Presentation transcript:

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

2 Werkt voor werkgevers French delegation2 Structure 1.Social dialogue 2.Crisis in 2009 3.Recent trends 23 February 2010

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

4 Werkt voor werkgevers Levels of industrial relations in The Netherlands central agreements (social dialogue) sectoral collective agreements company collective agreements union federation employers’ federations unions employers’ organisations unions employer individual labour contracts employee works council Government 23 February 20104French delegation

5 Werkt voor werkgevers 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) 23 February 20105French delegation

6 Werkt voor werkgevers LAURENS AWVN CHRIS FNV Levels of industrial relations in The Netherlands central agreements (social dialogue) sectoral collective agreements company collective agreements union federation employers’ federations unions employers’ organisations unions employer individual labour contracts employee works council Government 23 February 20106French delegation

7 Werkt voor werkgevers Levels of industrial relations in The Netherlands central agreements (social dialogue) sectoral collective agreements company collective agreements union federation employers’ federations unions employers’ organisations unions employer individual labour contracts employee works council Government 23 February 20107French delegation

8 Werkt voor werkgevers 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) 23 February 20108French delegation

9 Werkt voor werkgevers 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 23 February 20109French delegation

10 Werkt voor werkgevers Levels of industrial relations in The Netherlands central agreements (social dialogue) sectoral collective agreements company collective agreements union federation employers’ federations unions employers’ organisations unions employer individual labour contracts employee works council Government 23 February 201010French delegation

11 Werkt voor werkgevers 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) 23 February 201011French delegation

12 Werkt voor werkgevers Coverage and union representation 23 February 201012French delegation

13 Werkt voor werkgevers 23 February 2010French delegation CLA’s in The Netherlands in 2009 Number of CLA’s Number of employees Company-level CLA’s558 (75%)594.500 (10%) Branch-level CLA’s190 (25%)5.555.000 (90%) (855.500 by extension = 14%) Total7486.149.500 Source: Ministry of Social Affairs and Employment, June 2009 13

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

15 Werkt voor werkgevers French delegation15 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

16 Werkt voor werkgevers French delegation16 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

17 Werkt voor werkgevers 23 February 2010French delegation17 Spring Pact (2009) Wage increase approximately level of inflation (prediction 2009 = 1%) If more financial budget available, than: –Employment –Training –Pension

18 Werkt voor werkgevers 23 February 2010French delegation18 Practice Spring Pact

19 Werkt voor werkgevers 23 February 2010French delegation19 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

20 Werkt voor werkgevers 23 February 2010French delegation20 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.

21 3. Recent trends in 2010

22 Werkt voor werkgevers French delegation22 CA-cycle 2010 Prinsjesdag 2009: Government policy 2010 and forecasts 2010 Autumn 2009: Central deal? December 2009-October 2010: CA negotiations September 2009: Concept federation strategy 2010 1 2 3 4 23 February 2010

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

24 Werkt voor werkgevers French delegation24 CA-cycle 2010 Prinsjesdag 2009: Government policy 2010 and forecasts 2010 Autumn 2009: Central deal? December 2009-October 2010: CA negotiations September 2009: Concept federation strategy 2010 1 2 3 4 23 February 2010

25 Werkt voor werkgevers French delegation25 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

26 Werkt voor werkgevers French delegation26 CA-cycle 2010 Prinsjesdag 2009: Government policy 2010 and forecasts 2010 Autumn 2009: Central deal? December 2009-October 2010: CA negotiations September 2009: Federation strategy 2010 1 2 3 4 23 February 2010

27 Werkt voor werkgevers French delegation27 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

28 Werkt voor werkgevers French delegation28 I. Sustainable employability Healthy employees II. Flexibility Healthy organisation III. Sustainable wage costs AWVN strategy 2010 23 February 2010

29 Werkt voor werkgevers French delegation29 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

30 Werkt voor werkgevers French delegation30 CA-cycle 2010 Prinsjesdag 2009: Government policy 2010 and forecasts 2010 December 2009-October 2010: CA negotiations 1 2 3 4 No Autumn Summit September 2009: Federation strategy 2010 Last Saturday: Dutch government falls 23 February 2010

31 Werkt voor werkgevers French delegation31 CA-cycle 2010 Prinsjesdag 2009: Government policy 2010 and forecasts 2010 Results February 2010 CA negotiations 1 2 3 4 September 2009: Federation strategy 2010 No Autumn Summit 23 February 2010

32 Werkt voor werkgevers French delegation32 Agreements made so far 23 February 2010

33 Werkt voor werkgevers French delegation33 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) Agreements made so far 23 February 2010

34 Werkt voor werkgevers French delegation34 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 Agreements made so far 23 February 2010

35 Werkt voor werkgevers French delegation35 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

36 Werkt voor werkgevers French delegation36 Questions? 23 February 2010

37 Werkt voor werkgevers French delegation37 Merci! 23 February 2010


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