Netherlands: contentious agreement on the limit to unemployment allowances

On September 9, 2008, the government, the Confederation of Dutch Industry and Employers (VNO-NCW) and the Dutch Trade Union Federation (FNV) announced a surprise agreement on unemployment allowance : the text plans a drastic cut in employers' dismissal costs, in exchange for the government's promise not to soften the law against dismissals. (Ref. 080676)
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All employees who earn more than €75.000 a year may see their basic allowance limited to a whole pay year instead of one month’s pay per seniority year. More generous allowances may still be negotiated in individual contracts, but not in collective agreements. This agreement is separated from the new tax system for the CEOs of listed companies, about to be adopted by the Parliament. The new agreement’s potential for success is sparse. The Federation of Christian trade unions (CNV) and the Feder

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