Low pay/minimum wages, Netherlands

(June 2017) A new report from the CBS statistics office highlights three key trends in the labour market reflecting greater inequality and less security. Overall the percentage of workers on permanent contracts has fallen from 71% to 61% while the labour market is becoming more divided between low-paid, low-skilled jobs and high-paid work, with few jobs in the middle. The report also found more young people and those with basic education are stuck in low-paid jobs with little autonomy or security.

Campaigning by the youth section of the FNV trade union has paid off with implementation of a change in the national minimum wage. The adult rate will now be applied from 21 rather than 22. This means 21-year-olds will benefit from the new EUR 9,44 rate, a 45% increase on the previous rate, which was only EUR 6,49. While being delighted with the result the union's youth section is determined to keep up the fight to get right of the other age-related rates so that the full adult rate applies from 18.

(March 2017) After years of campaigning, workers in social care might see some respite from the race to the bottom on contract costs and pay. The government has approved an order in council that requires municipalities to adopt fair and equitable rates for home care. This should end the situation where local authorities were issuing tenders which providers could only meet by cutting costs and for workers this meant either losing their job or seeing a massive cut in pay.

Members of the FNV, NU’91 and other unions have endorsed the new collective agreement covering around 190000 workers in disability care that is backdated and runs from 1 October 2021 to 31 January 2024. There is a 2.2% pay rise as from 1 May 2022 but with an €85 minimum increase and with also a commitment to a minimum hourly rate of €13.00. This means a 5% increase for the lowest paid. On 1 May 2023 there will be a further increase of 3.2%. The agreement also provides for hours reductions for older workers to encourage them to stay at work longer and measures to address the needs of women

Members of the FNV trade union are in the process of voting on whether to support the agreement covering the municipal sector that was negotiated last month. The agreement provides for a 1.5% pay increase from 1 December 2021 and a further increase of 2.4% from 1 April 2022. There will also be a €1200 lump sum paid, €900 of which is pensionable and €300 of which reflects a COVID bonus. Also the agreement commits municipalities to guarantee a €14 an hour minimum wage from 1 January 2022. There are several other elements to the agreement including a working-from-home allowance and measures

The FNV trade union is involved in two major campaigns. The first, running from 1-5 September, is a nationwide action across health and social care in response to COVID-19. The union wants to see proper recognition of the role played by health and social care workers and is calling for better pay and working conditions, reduced workloads and more autonomy for workers. The FNV is underlining the importance of preparing for a second wave of the pandemic and argues that action is needed to make the health and care sectors more attractive to increase recruitment. Meanwhile, the union is running a