Netherlands: limited extension of short-time working

Right now, over 40,000 employees are on short-time working (Deeltijd WW), a system introduced in early 2009 to face the crisis. The new, temporary extension of this measure will be the last. After July 1st, 2011, short-time working will be abolished - unless the next coalition in power after the legislative elections of June 9 decides otherwise. Besides, this new extension is limited: any company that already appealed to it can’t request it again after April 1st, 2010. The government’s goal is to protect heavy industries, notably construction and metalworking, from the crisis’ delayed impact. Minister for Social Affairs and Labor Piet Hein Donner wanted to negotiate the continuation in 2010-11 of the effort of wage moderation unions agreed to in 2009 in exchange for this extension. But the social partners weren’t very enthusiastic (see our dispatch No. 100226) so he admitted that the idea wasn’t very pragmatic and gave it up. Indeed, all collective agreements signed for 2011 should have been renegotiated. The government is going to award another €70 million to short-time working, even though the funds planned for 2010 (€950) haven’t run out yet. Piet Hein Donner also announced, on March 15, that an additional €12 million will be dedicated to training. Finally, €3 million will be allocated to a bonus employers can request if they recruit an employee within three months after they were laid off, instead of four weeks before.
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the funds planned for 2010 (€950) haven’t run out yet. Piet Hein Donner also announced, on March 15, that an additional €12 million will be dedicated to training. Finally, €3 million will be allocated to a bonus employers can request if they recruit an employee within three months after they were laid off, instead of four weeks before.

Planet Labor, March 16, 2010, No. 100232 – www.planetlabor.com

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