The Dutch System of Collective Labor Agreements (CAO) is Showing Signs of Strain and Needs Urgent Maintenance, Employers’ Organization AWVN HAS WARNED In a new position paper Calling for Reforms and Broader Dialogue with Trade Unions.
The Organization is Concerned that Support for Collective Agreements is Eroding, Partularly in Neer Sectors of the Economy. The AWVN, which plays a Role in many of the 628 Caos Currently Operating in the Netherlands, Said the System Risks Becoming Outdated and Less Effective. “Without a Cao, It’s Every Company for Itself,” Acting Director Guido Van Woerkom Told the Financieele Dagblad.
Traditionally, around 80% of Dutch Employees Were Covered by A Collective Agreement, But That Figure Has Now Fallen to Just about 70% and Continues to Decline Slowly.
The Warning Comes Ahead of Government Proposals Expected This Summer On How To Strengthen The Dutch Consensus Approach To Negotiations, Known As The polder model.
An European Directive Requires Countries with a Collective Bargaining Coverage Rate Below 80% to Present An Action Plan to raise That Level. Social Affairs Minister Eddy Van Hijum is due a letter to parliament on that subject in the coming week.
In particular, Fast-Growing Sectors Such as ICT Are Increasingly Reluctant to Join Industry-Wide Agreements, Van Woerkom Said. He pointed to examples such as picnic, the online supermarket embroiled in a legal dispute about being forced to join the supermarket sector’s collective agreement. Similar Disputes Have Emerged in The Delivery and Security Sectors.
Union Membership in The Netherlands Has Continued to Fall, With Just 15% of Workers Affiliated at the End of 2023.
The AWVN Said Employers and Unions Must Work Together to Include Non-Unionized Employees In The Process and Give Independent Workplace Initiatives, Such As Wim at Ikea or Our Next Move at ABN AMRO, A Voice.
Van Woerkom Rejected Suggestions That Employers Lacked Urgency. “We can see the system create. It’s up to us – employers and workers – to take response for meintaining it. Without Caos, we risk a race to the bottom.
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