Pay settlements, Privatisation, Denmark

The 480,000 workers in municipalities and 140,000 workers in regional government are set to get pay increases of 4% from 1 April as a first instalment of the 6.51% (municipal) and 6.53% (regional) increases over the next two years. An additional 2% fund is available for unions to negotiate separately for different groups of workers and so the overall pay rise will be closer to 8.8% and with an expectation that the real increase overall will be 2.17%. There are also additional amounts for the lower paid. At the end of 2025 there will be further negotiations that will focus on the comparative

Negotiations on a new agreement covering the state sector were concluded on Sunday 11 February with employees set to get a 7.4% pay increase over two years that should deliver a real increase of 2.5%. The first increase will be for 5.9% on 1 April 2024 with a further 1.3% due on 1 April 2025 and 0.2% on 1 November 2025. Additional funds have been allocated for the development of wages and other conditions in the individual collective agreements with the overall package worth 8.8%. There will be an extraordinary salary negotiation at the end of 2025 which will focus on the comparative

Public sector unions have welcomed the outcome of negotiations with the employers and government which have delivered a package of pay-related measures backed with DKK 6.8 billion (€910 million) of funding. A number of different groups of workers across the public sector will benefit, particularly those affected by major staff shortages. Around DKK 1.3 billion (€170 million) will go into health and elder care, for example. The package will have a wider impact than anticipated as, in addition to the higher pay for occupations like nurses, care workers, social educators and prison staff, a much

The FOA trade union and the Danish Chamber of Commerce have agreed a two-year renewal of the collective agreement for employees private care covering also residential homes and nursing homes for the first time. The hourly wage increases by DKK 6 (€0.80) as of 1 March and there will be a further increase of DKK 5.75 (€0.77) per hour on 1 March 2024. FOA made a point of securing a flat-rate increase for all employees. This will mean that a social and health assistant on day duty can will get a monthly salary increase of just over DKK 3,600 (€485) when the full effect of the collective agreement

Public sector workers will be covered by two new three-year agreements running from 1 April to the end of March 2024. The agreements covering municipal and state sector workers both have an overall value of 6.75% of the pay bill over the three years but the amounts are distributed differently. In the municipal agreement there will be a 5.02% general increase but there will be additional amounts allocated to address low pay, equal pay, recruitment and organisational issues, taking the overall increase to 5.94%. In the state sector there will be a 4.42% pay rise over the three years, with

The FOA public services union has warned the Vikapleje private eldercare company that it will face strike action from 15 June unless it ensures that its employees are paid in line with the municipal agreement. The company provides services for the Halsnæs municipality north west of Copenhagen and FOA has been trying for some time to negotiate an agreement with the company along the lines of those it has with many other private companies. The union estimates that Vikaplege is costing workers as much as DKK 90000 (EUR 12000) a year in lower pay and pension benefits.

It has taken three and a half years and legal action by the FOA public service union to ensure that care workers finally get the money they owed from their employer, Kaerkommen, which went bust in 2015. The 77 workers were owed around DK 12 million (EUR 1.6m) in pay and holiday allowance but the public authorities - municipalities on the one-hand and the wage guarantee fund on the other - refused to take responsibility for the compensation. The court ruled that the wage guarantee fund should pay up and the employment minister has now drafted new legislation to cover such cases and ensure that

The FOA public services union has very much welcomed the significant increases to pay for health and social care assistants and trainees as a result of the recently negotiated public sector collective agreements. While all workers will benefit from the the overall 8.1% increase over three years, specific increases set out in the agreements will mean that health and social service assistants will see increases of 13% over the period and trainees will get pay rises of between 14% and 19%. The union believes these are important steps in revaluing low paid jobs in the sector and also making the

(May 2017) Around 200 workers and the 1100 people they provide care for are the latest victims of private care company bankruptices. The collapse of Hjemmehjælpen Aarhus, the largest private care company in Aarhus, Denmark's second city, is the third private care company bankruptcy in May and the 41st since 2013 when a new tendering system was introduced. The FOA public service union is calling for a change to the system with requirements to monitor professional and management skills, company finances and to protect working conditions.

(March 2017) Public services union FOA has negotiated a new three-year agreement with employers covering around 10000 workers in the private eldercare sector. The deal includes a DKK 2.50 (EUR 0.33) increase on the hourly rate in each of the next three years. There are also provisions covering rights of employee representatives and skills development. The agreement is now out for approval by the membership.

(March 2017) The FOA public services union has called for action to stop low cost bids for social care contracts require quality provision in the tenders. The union reports one recent example where municipalities have chosen a bid from a private company that involves DKK 10,000 less spending per client. The union argues that the situation has lead to bankruptcies as companies realise they can't meet the contract. This impacts on workers' jobs and is a challenge for FOA to ensure private companies sign up to the sector collective agreement.

(February 2017) Negotiators in the private manufacturing sector signed a new three-year deal last month. This is seen as a key agreement setting the pace for negotiations in other sectors. In the public services, the FOA union noted in particular the proposals for new funding and rights for workers for training as well as improved parental leave. FOA also underlines the flat-rate, two-crown (EUR 0.3) increase in the minimum hourly pay rates in each of the three years of the agreement. Which will take the minimum to DKK 117.65 (EUR 16.1) by 2019.