Dutch labour relations mco 20150410
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Transcript of Dutch labour relations mco 20150410
Dutch Labour Relations
D U T C H L A B O U R R E L A T I O N S
M A R C H 2 0 1 5
M A R T I N O V E R B E E K EH R M - W O R K P L A C E
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NEDERLANDSE ARBEIDSVERHOUDINGEN
DUTCH LABOUR RELATIONS
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PART I GENERAL
1. THE NETHERLANDS
2. LABOUR AND INDUSTRIAL RELATIONS
3. COLLECTIVE LABOUR AGREEMENT (CLA)
4. WORKS COUNCIL
5. LEGISLATION
PART II COMPANY SPECIFIC
1.
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THE NETHERLANDS
Je maintiendrai"
• Constitutional monarchy• Parliamentary democracy since 1848• Approx. 17 million inhabitants (78% Dutch)• Highly densely populated (497 people/square km)• Low country, about 50% under sea level• Long history of tolerance. Liberal climate• 15th positon Index of Economic Freedom Index 2014
• Strong export position (21 % Agro)• Well educated population 38% of the age group 24-35 yr
has a HBO (Bc/Master) or Academic degree (Master/Phd)
• High level of wealth and happiness (3th in global rankings)
THE NETHERLANDS
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Amsterdam Capital city
Financial and business (AEx)
The Hague Government
International Court
Political Centre
Rotterdam Main port Europe
Chemical Industry
Eindhoven Science Centres / Innovation
Electronics / automotive
Randstad
THE NETHERLANDS
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Economic growth 1.25% (2015)
Unemployment 6,7% (605k)
CPI 1,25%
Gov. Deficit -2,2% Gbp
Gov . Dept. 70% Gbp
GBP 467 Bill.
State budget 267 Bill.
Population 17 million
Workers 8.4 million
Universities 14 8 University Medical Centres
Absenteeism rate 3.9%
Lost day by strikes 19.000 days (0,001% in 2013 )
DUTCH PEOPLE
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What Dutch think and do What foreigners see (at times)
Liberal and tolerant Tolerating all (drugs, sex, euthanasia)
Sober Low empathy
Individuals Social, but not warm welcoming
Cycling Cycling
Dialogue – Polder model Who is in charge? Endless consultation
Windmills, tulips, wooden shoes Amsterdam
Men of the world Narrow minded, business first
Multi lingual Mainly English
Pragmatic Punctual
Rhineland model Anglo-Saxo model
Direct, Open Rude
SECTORS OF INDUSTRY
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3 Main sectors
Agrifood
Chemical
High Tech
QUIZZ - WHO ARE THEY?
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LABOUR MARKT
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TRENDS
Globalization
ICT
Aging
Decentralization
Anglo-Saxon culture
EFFECTS
International Enterprises
Growing service industry
Declining manufacturing
Changing labour market
Higher pension age (67)
Growing flex labour
Productivity / Quality
Long term unemployment
Increasing difference between haves and have nots
FACING SHIFTS
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Employers Flexibility
Productivity
Quality
Competition
Cost
Shortness of talent
Employees End of life time
employment
Mobility
Work-life balance
More responsibility
Fit to work
Up to standard competences
High demands / educ.
Longer work life
OLD-AGE DEPENDENCY RATIO
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Source: Eurostat
MEASURES• Pension age to 67 year• From Defined Income to
Defined Benefits• Lower accrual rate
1.875%/yr• Maximum pensionable
income 100.000 Euro• Average pension age in
2014 was: 64 year • High tax penalty for
early retirement on employers initiative
0
10
20
30
40
50
60
70
2013 2020 2030 2040 2050 2060 2070 2080
Projected old-age dependency ratio
EU (28 countries) Belgium Germany France Netherlands
EMPLOYERSHIP
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LABOUR AND INDUSTRIAL RELATIONS
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STICHTING VAN DE ARBEIDhttp://www.stvda.nl/
The Labour Foundation is the highest national consultative body which provides a forum in which its members discuss relevant issues in the field of labour and industrial relations. Its members are:
3 Employers associations:
Vereniging VNO-NCW
Koninklijke Vereniging MKB-Nederland (MKB)
Land- en Tuinbouw Organisatie Nederland (LTO)
3 Union Federations
LABOUR AND INDUSTRIAL RELATIONS
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FOUR UNION FEDERATIONS 1.8 MILLION MEMBERS
1. FNV - Federatie Nederlandse Vakbeweging http://www.fnv.nl/
2. CNV - Christelijke Nederlandse Vakbeweginghttps://www.cnv.nl/
3. VCP – Vak Centrale voor Professionals (Legacy MHP)http://www.vcp.nl/
4. De Unie http://www.unie.nl/
Number of members has decreased slowlyAverage age of union member increasesApprox. 1 on 5 workers in average is member of an union
LABOUR AND INDUSTRIAL RELATIONS
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Industrial Relation Partners for the Chemical Industry
AWVN – Dutch Employers Associationhttp://www.awvn.nl/
FNV – Sector Industrie CNV – Vakmensen De Unie – Industrie en Handel VCP
VNCI Vereniging Nederlandse Chemische Industriehttps://www.vnci.nl/english/
VNCI promotes the collective interests of the chemical industry but is not an partner in industrial relations or negotiations about collective labour agreements
LABOUR AND INDUSTRIAL RELATIONS
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CONSULTATION ALONG TWO LINES
Board / Management
Employees
Works Council
Unions
Works Council Act
CLA’sSocial Plans
Union Official
Members
Employed bythe unions
Members are employees
COLLECTIVE LABOUR AGREEMENT (CLA)
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Act CLA (wet op de collectieve arbeidsovereenkomst, 1927)
Employers association or Management versus Unions
80% of Dutch contracted workers are covered by a CLA
CLA as: Sector CLA (f.e.: construction, metal, printers, agriculture, civil, etc.)
Business CLA (single company, f.e.: Philips, DSM, etc.)
Regulations apply to all levels mentioned in the CLA
Distinction between union members and unbound employees is not allowed by law
A CLA is not mandatory, unless a company is bound by a sector CLA
COLLECTIVE LABOUR AGREEMENT (CLA)
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The CLA is incorporated in the individual labour contract
CLA for a average period of 1 or 2 years. (Law max. 5yr)
The (lavel) application range up to €50.000 á €70.000
Companies without a CLA may set rules or submit a staff handbook (personeelshandboek of bedrijfsreglement).
CLA - PROS AND CONS - EMPLOYER
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Advantages Stable social climate
Cost control
Risk reduction
Good Industrial relations
Acceptance by employees
Equality of treatment
Quality of negotiations
Disadvantages Conflict of interest
between goals of unions and business
Change of entrenched interests is difficult
Representation degree union members
Time and effort required to reach an agreement
TYPICAL POINTS OF NEGOTIATION
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Rewards
Working time
Job security
Pension scheme
Working conditions
Safety and Health
Employability
Ageing
Participation
Etc.
TRENDS IN INDUSTRIAL RELATIONS
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Job security
Flexibility Less rules
More local control
Exchange income <> time
Tailor made conditions
Sustainable Employment Labour conditions
Workload and workability (stress)
Health management
Education and training
Increasing pension age
Dutch Labour Relations
WORKS COUNCIL
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ONDERNEMINGSRAAD
DUTCH WORKS COUNCIL
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Law: Wet op de ondernemingsraden (1971) WOR - English
Works council in Dutch: Ondernemingsraad (OR)
A works council is obliged for companies with more than 50 employees
A voluntary employee representative body can exist for smaller companies (<50 employees)
The number of members depends on the size of the company (art. 6 WOR)
A works council may set up (temporary) committees to prepare matters to be dealt with by the OR (i.e. HSE, Finance, etc.)
Multinationals with > 1000 employees and at least 150 employees in two or more EG countries must comply with the European Works Councils Directive EWC Legislation
DUTCH WORKS COUNCIL
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CONSULTATION MEETING
Consultation meeting (overleg-vergadering) after a request of the entrepreneur or the works council within 2 weeks
For matters relating to the enterprise concerning on request of the entrepreneur or the Works Council
The works council may submit proposals. The entrepreneur shall not take a decision on the proposal until it has been discussed at least once at a consultation meeting. (art. 23 initiatiefrecht)
Consultations shall be conducted on behalf of the entrepreneur by the director or general manager of the enterprise.
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Powers of the Works Council
Right on:
Consultation Article 23 - Initiatiefrecht
Advice Article 25 - Adviesrecht
Appeal Article 26 - Beroepsrecht
Endorsement Article 27 - Instemmingsrecht
DUTCH WORKS COUNCIL
DUTCH WORKS COUNCIL
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RIGHT ON ADVICE (ART. 25)
The entrepreneur shall give the Works Council an opportunity to render advice on any decision he proposes to make with one of matters as named in article 25 points a to n.
PROCESS
1. The entrepreneur shall submit the proposed decision in writing to the Works Council for its advice. This advice shall be requested at a time when it can still significantly affect the decision to be taken.
2. The Works Council shall not give an advice until the matter in question has been considered in a consultation meeting
3. After advice by the Works Council, the entrepreneur shall asap send a written notification of the decision to the WC
4. If the decision is conflicting with the advice, the entrepreneur shall postpone implementation of the decision one month.
DUTCH WORKS COUNCIL
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RIGHT ON ENDORSEMENT (ART. 27) - InstemmingsrechtThe endorsement of the Works Council shall be required for every proposed decision on the part of the entrepreneur to lay down, amend or withdraw of a matter as called under article 27 points a to l.
PROCESS
The entrepreneur submits his proposed decision in writing to the Works Council inclusive a summary of his reasons and consequences for persons working in the enterprise.
The WC shall not decide until the matter has been discussed in at least one consultation meeting.
The WC asap notifies the entrepreneur of its standpoint
The entrepreneur notifies the WC of his decision and the date upon the decision will take effect.
Any decision taken without the endorsement of the Works Council or the permission of the subdistrict court judge shall be invalid.
WORK AND SECURITY ACT (2015)
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The purpose of the (new) Work and Security Act (Wet Werk en Zekerheid – Wwz, 2015) is to contribute to decent employment.
Therefore, changes are made in three areas:
Flex Right(s)
Dismissal
Unemployment
WORK AND SECURITY ACT (2015)
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More security for flex workers
Maximum duration 2 years, then permanent contract
Interval between two contracts minimal 6 months
Temporary contract, notice 1 months before the end date of the contract.
Unemployment Act WW
Duration from 38 to 24 months *)
Guidance from work to work
After 6 months WW benefits, all labour is seen as adequate
Structure WW: 1ste 1o yrs1 month sal./yr in serv., then ½ month sal/yr.
DISMISSAL
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Three options:1. Prudential resignation and dismissal by long-
term disability through the UWV (labor office);2. Dismissal for other reasons by the cantonal
judge;3. The procedure time with the labor office or
cantonal judge can be deducted from the period of notice. Minimum notice period min. 1 month.
• In case of concluding a termination agreement has the employee a cooling off period of 14 days.
TRANSITION FEE
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At dismissal by the employer and employment for 2 years or more, employee has a right to a transition fee.Structure: 1/3 month's salary per year of service for 1st 10 years and then a half month's salary per year of service.
Compensation max. € 75.000 or an annual salary
Outplacement costs can be subtracted from the fee
In severe culpability of the employer, the district court may grant an additional fee
DIFFERENCE
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KR Formula (Old)
A * B * CA = duration of employmentB = salaryC = correction factorIs no right
OLDAge 54, 20 yrs. in service, C=125 month salaries
KR = Cantonal Judge
Transition allowance (New)
First 10 yr: 1/3 month/yrAfter 10 yr: 1/2 month/yr 50 year transitory
Is a right
NEWAge 54, 20 yrs. in service11 month salaries
Max €75.000 or higher if annual salary is more than €75.000/year
DISABILITY DUE TO ILLNESS
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Continued payment of wages during illness period (Ziektewet)
First 12 months 70% of income - at least minimum wage
Plus 12 months 70% of income Total 24 months of sickness benefit
Many companies add up to 30% for 12 or even 24 months
Illness payments (up to 70%) can be insured on the market
Illness is reported to the direct manager plus company doctor
After 6 weeks of illness a formal problem analysis and a resumption plan has to be made by the manager and the company doctor
At week 42 the UWV (labor office) has to be notified about the case
After 24 months of illness, the employee is entitled to get a payment from the WGA (Act resumption partially disabled)
The cost of prolonged illness are very high
First priority is prevention!
LANGDURIG ARBEIDSONGESCHIKT
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Act resumption partially disabled
After 24 months of illnes > WGA (Wet werkhervatting gedeeltelijk
arbeidsgeschikten)
Very complex
Can be insured by state or insurance company
No payment in case disability is less then 35%
Negative financial effects for employees can be repaired by: CLA
Individual WGA Insurance
The cost of prolonged illness can be extreme high. Ask always professional advice!
PART II – COMPANY SPECIFIC PART
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LOGO