Trade union groups and employer organisations from the five metal and engineering sectors in the Netherlands (310,000 workers from 27,500 companies from the so-called ‘light’ metal-working industry) announced on 5 September that they have struck a deal to renew their collective agreement. Effective from 1 October 2019 until 30 September 2021, the agreement provides for a three-stage pay increase (3.5% on 1 December 2019, 3.5% on 1 July 2020, and 0.93% on 1 March 2021) as well as the payment of a one-off bonus of 306 euros in February 2021. Statements from the agreement’s signatories highlight the ‘generation pact’, which will allow older employees to work fewer hours, so that young people can obtain a permanent job. After the compromise, the unions have dropped their warning of a strike, which was set to take place on 13 September. The agreement still needs to be voted on by members of the signatories.
Under the renewal of the so-called ‘generation pact’, offered to workers aged 60 and over, a worker can agree with their employer to work 80% of their hours, for 90% of their wages, while paying 100% of their retirement contributions. Such workers must satisfy conditions on length of service and remaining annual leave. Workers will also continue to enjoy additional days of leave but from the age of 54, rather than 53 at present.
In parallel, and to cope with the shortage of labour, the level of
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