Netherlands: short-time working to end on July 1st

In total, short-time working was used for 76,000 employees in 7,800 businesses, mostly in the heavy industry (24% in steel and 17% in metalworking).  Not a single file has been accepted since January 7th, but the system introduced on April 1, 2009 and extended several times (see our dispatch No.  100232) has reached its initial goals: today, the Dutch economy is ready for the recovery without any workforce shortages.  Short-time working helped avoid mass layoffs, allowing businesses to “save” part of their staff for a maximum of half their working time.  No requirements were set out for applying businesses, except not being too badly off, since short-time working isn’t conceived to avoid inevitable social plans.  The employees concerned received part of their salary and part of unemployment insurance, over periods of three months renewable twice.  All layoffs were forbidden for employees under short-time working for three months after they return to work full time.  No less than 150 businesses paid fines nearing €1M in July 2010 (see our dispatch No.  100558), for failure to respect short-time working regulations.  Some, including automaker Daf Trucks, were suspected of massively appealing to short-time working without setting their employees aside, leading to normal full-time employment partly subsidized by unemployment insurance.  Managers from the Central Planning Bureau (CPB) sounded the alarm in September 2009, denouncing major abuses, then denied by the businesses accused.  An initial €357M were allocated to the system, which dried out between April and June 2009.  Another €575M were added in July 2009, and then €70M in 2010.