Is there a trend break among employers? Zakaria Boufangacha, vice-chairman of the trade union FNV, hardly dares to say it. Still, he notices that employers are increasingly realizing that they “can no longer get away with work that is as cheap as possible.” This Wednesday, the FNV held the six-monthly evaluation of the concluded collective labor agreements. Progress has been made, Boufangacha says, with an average wage increase of 2.8 percent over the past six months. Last month there was even an increase of 3.8 percent, according to figures from employers’ association AWVN.
A good result, but there is still a lot to be achieved, says Boufangacha. “At the end of the year, we want that wage increase to be close to 5 percent. And in 60 to 70 percent of the collective labor agreements we want favorable agreements on permanent contracts instead of flexible work.”
That is ambitious, he says himself, but not impossible. “Employers have to, otherwise people will walk away. You saw that happening in aviation and healthcare, sectors where the greatest successes have now been achieved.” In hospitals an average wage increase of 3 percent applies, for people with the lowest wages even 6 to 7 percent. Baggage handling at Schiphol has been brought under a single collective labor agreement to prevent mutual competition from the many providers. The salary there will gradually increase to 14 euros per hour. “Competition should be based on innovation and quality, rather than cheap work.”
Wage rise is ‘too slow’
With the current labor market tightness, people have the choice to work somewhere where they are ‘more appreciated’. It explains the – small – change in the attitude of employers, says Boufangacha, “but it certainly does not happen by itself”. “We are seeing an increase, but it is steady. Too slow. Moreover, the wage increase is almost immediately eaten by inflation.” That is why the FNV advocates that companies allow employees to share in their profits. “It is not a lack of money, but the choices of the employers.”
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The conversations with those employers were difficult, Boufangacha thought. Even with good profit figures, which, according to him, staff would hardly notice, employers did not move much. “Companies rely on uncertain times and their competitive position. Only with actions by members, such as petitions and in exceptional cases strikes [zoals bij Gall & Gall en in de metaal- en technieksector]employers were willing to make concessions.”
A spokesperson for employers’ association AWVN says he does not recognize himself in that image. “A result-dependent remuneration would also be beneficial for employers. Provided that this also applies when a company is not doing well.”
This week the European Parliament and member states reached an agreement on a higher minimum wage that workers, according to the drafters, should be able to live on “decently”. According to chief negotiator Agnes Jongerius (PvdA), this amounts to a minimum wage of 14 euros per hour in the Netherlands. Minister Karien van Gennip (Social Affairs, CDA) has already said that the new standards “not coercive” to be.
Minimum wage of 14 euros
The FNV has been arguing for a minimum wage of 14 euros per hour for some time. This has been achieved in one in five collective labor agreements. Boufangacha: „That has a direct impact on people from those collective labor agreements, we are happy about that. But one in five is of course far too little. A decent life should be the most natural thing in the world.”
But employers cannot just raise the lowest wages by a few euros, says the spokesman for the AWVN. “I think a lot is happening already. But a higher salary means higher costs, so that the product price may have to go up or there is room for fewer people.”
The responsibility lies not only with employers, says Boufangacha, but also with politicians. He seems – a little – to listen. “Good steps are being taken in the collective labor agreements for education and defense. But there is too much delay with raising the minimum wage.” Regulations regarding flexible working are also inadequate, says Boufangacha. “Rates of bogus self-employed people are under pressure, while they should simply be hired. We need the government to improve and enforce the rules of the game.”