Belgium: cross-industry negotiations on a 5% available ‘wage cushion’ opened

In Belgium, multi-industry negotiations are held every two years (for the last agreement, see our dispatch No. 090012).  The definition of the norme salariale (wage standard – the maximum limit for wage cost development) is at the heart of the debate. To determine this standard, the social partners rely on the “marge salariale disponible” (the available wage cushion), that matches the planned wage trend in the reference countries (Germany, France and the Netherlands) for 2011 and 2012, and which is used as a basis for the negotiation.  The Central Economic Council (Conseil Central de l’Economie, CCE) analyzed, in the report published on Tuesday, November 9th, that this marge salariale disponible would be 5% for 2011-2012.  Yet, the CCE also provides for automatic indexation for incomes reaching 3.9% for the next two years.  Thus, to negotiate, the social partners’ room for maneuver doesn’t surpass 1.1%, which doesn’t give them much freedom.