Netherlands: new light metal collective agreement postpones wage increases to 2011

Increases postponed to 2011. The General Employers’ Association (Algemene Werkgevers Vereneging – AWVN), affiliated with the Confederation of Netherlands Industry and Employers (VNO-NCW), the largest employers’ organization, would like the collective agreement negotiated in late October for the light metal sector to be used in all other sectors. Indeed, unions accepted a virtual wage freeze in light metal, a sector which employs 10,000 people, with a single 1.5% wage increase for the next three years, to be paid in February 2011. In exchange, they obtained promises that employment will be maintained for three years, and 3.5 extra days off in 2010. However, employers can cancel this measure if the economy resumes and if activity increases, provided that they increase wages. This agreement “may seem rather unorthodox, but it is exceptional in times of a crisis” declared Jan Berghuis, negotiator for the Netherlands Federation of Trade Unions and allies (FNV Bondgenoten).
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2010. However, employers can cancel this measure if the economy resumes and if activity increases, provided that they increase wages. This agreement “may seem rather unorthodox, but it is exceptional in times of a crisis” declared Jan Berghuis, negotiator for the Netherlands Federation of Trade Unions and allies (FNV Bondgenoten).

Push wages to the background. The AWVN thinks that, now, unions have to leave wages in the background, and make it a “second, or even third priority,” wage after job

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