Netherlands: FNV union rejects pay freeze called for by the government and employers

The police are already waiting for the strike but civil servants are not the only targets of the Act in the offing imposing a freeze in all sectors for 30 months.  And unions were not consulted, whereas it is usually the norm in the Netherlands.  The country’s key union, the FNV, disagrees with the accommodating attitude of the Federation of Christian Unions (CNV), the country’s second union.  The Netherlands have a high public debt and budget deficit for 2013 should be 4.5 percent, much higher than the European norm – 3 percent.  The CNV says sacrifices are necessary.  Freezing civil servants’ pay alone would help save €2.5 billion in 2012, 2013 and 2014.  The measure would come with a freeze on contributions (social and unemployment) and on basic pension (AOW), which would no longer be indexed on inflation.  Indeed, the government needs to save €9-12 to reduce its deficit.  The FNV will definitely not agree to these efforts since, for 2012, it is calling for a 2.5 percent wage increase.  After the 2001 crisis, in 2003, a national agreement was signed to freeze all wages (see our dispatch No.  06800).  This three-year effort (2003-2006) left unions bitter since other reforms going against employees’ interests were nevertheless adopted (early retirement scrapped in 2006, pension reform in 2012).  Now, the renowned ‘polder system,’ based on discussion and compromise, is being put into question.  “Consultation doesn’t work anymore” said Bernard Wientjes, leader of the employers’ organization, rising up against the culture of systematic wage increases (see our dispatch No.  110562).  He wants a “national solidarity agreement” in preparation for a widespread pay, pension and benefits freeze.  The right-wing coalition in power is thinking about passing a law because of the time social consultations take and because of urgent character of the situation.