1. Dutch Labour Relations
DUTCH LABOUR RELATIONS
MARCH 20 15
M A RT I N OV E R B E E K E
H R M - WO R K P L AC E
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NEDERLANDSE
ARBEIDSVERHOUDINGEN
info@hrm-workplace.com

2. 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)

4. 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

5. 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 )

6. 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

7. SECTORS OF INDUSTRY
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3 Main sectors
 Agrifood
 Chemical
 High Tech

8. QUIZZ - WHO ARE THEY?
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9. 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

10. 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

11. 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

12. EMPLOYERSHIP
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13. LABOUR AND INDUSTRIAL RELATIONS
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STICHTING VAN DE ARBEID
http://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

14. 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 Vakbeweging
https://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 slowly
Average age of union member increases
Approx. 1 on 5 workers in average is member of an union

15. LABOUR AND INDUSTRIAL RELATIONS
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Industrial Relation Partners for the
Chemical Industry
 AWVN – Dutch Employers Association
http://www.awvn.nl/
 FNV – Sector Industrie
 CNV – Vakmensen
 De Unie – Industrie en Handel
 VCP
 VNCI Vereniging Nederlandse Chemische Industrie
https://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

16. LABOUR AND INDUSTRIAL RELATIONS
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CONSULTATION ALONG TWO LINES
Board / Management
Employees
Works
Council
Unions
Works Council Act
CLA’s
Social Plans
Union Official
Members
Employed by
the unions
Members are
employees

17. 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

18. 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).

19. 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

20. TYPICAL POINTS OF NEGOTIATION
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 Rewards
 Working time
 Job security
 Pension scheme
 Working conditions
 Safety and Health
 Employability
 Ageing
 Participation
 Etc.

21. 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

22. Dutch Labour Relations
WORKS COUNCIL
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ONDERNEMINGSRAAD

23. 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

24. 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

26. 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.

27. DUTCH WORKS COUNCIL
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RIGHT ON ENDORSEMENT (ART. 27) - Instemmingsrecht
The 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.

28. 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

29. 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 yrs
1 month sal./yr in serv.,
then ½ month sal/yr.

30. 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.

31. 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

32. DIFFERENCE
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KR Formula (Old)
A * B * C
A = duration of employment
B = salary
C = correction factor
Is no right
OLD
Age 54, 20 yrs. in service, C=1
25 month salaries
KR = Cantonal Judge
Transition allowance (New)
First 10 yr: 1/3 month/yr
After 10 yr: 1/2 month/yr
 50 year transitory
 Is a right
NEW
Age 54, 20 yrs. in service
11 month salaries
Max €75.000 or higher if annual
salary is more than
€75.000/year

33. 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!

34. 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!

35. PART II – COMPANY SPECIFIC PART
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LOGO