Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

Employment Policy Convention, 1964 (No. 122) - Netherlands (Ratification: 1967)

1. The Committee notes the Government's report for the period ending June 1994, which was characterized by a slowdown in economic activity and a rise in the unemployment rate, which increased from 6.8 per cent in 1992 to 7.5 per cent in 1994. Certain characteristics in the distribution of unemployment give cause for concern, such as the unemployment rate of women, which is nearly double that of men, the incidence of long-term unemployment and the particularly high rate of unemployment (nearly three times higher) among ethnic minorities. Furthermore, the proportion of employment accounted for by part-time work, particularly among women, is continuing to grow. The Government also emphasizes the continued declined in activity rates and the relatively unfavourable ratio between the active and the inactive population in the Netherlands and refers to the link between employment, the number of inactive persons and social security benefits. The Committee notes in this respect that, according to the OECD, the labour market is affected by various forms of underemployment or "non-employment".

2. The Government, which describes the labour market situation as alarming and without real prospects of improvement in the short term, states that it cannot resign itself to unemployment stabilizing at an ever higher level after each recession. It states that its employment policy has to attack the structural causes of unemployment and lead to growth which produces more employment in sectors which are not exposed to international competition, since an employment structure in which there is no place for the least productive workers is socially unacceptable. The principal aims of the policy concern the strengthening of investment in research and infrastructure, the reduction of wage costs through the adoption of a restrictive wages policy and the improved functioning of the labour market by means of greater flexibility in the field of low wages and deregulation measures, such as the abolition of the requirement for prior authorization for dismissals. The Committee also hopes to find in the Government's next report the information which it requested previously on the manner in which the measures adopted in the fields of monetary and budgetary policy contribute to the promotion of employment.

3. The Committee notes that the aims of the Government's policy described above were submitted to the social partners with a view to the adoption of a joint plan of campaign. It notes with interest the Government's analysis that the gravity of the employment and unemployment problem requires a collective approach. It would be grateful if the Government would provide information on the "constructive consultations" that the Government is calling for and the measures which are taken in practice in accordance with the requirements and the spirit of Article 3 of the Convention.

4. The Committee notes the multi-year policy framework of the Employment Service and the objectives that it sets for the year 1994-98 with regard to the placement in employment of particular categories of the population, such as women, young persons, members of ethnic minorities and persons with disabilities. It requests the Government to provide any available evaluation of the policy implemented for this purpose and to indicate the extent to which these objects have been achieved and have contributed to promoting those set out in Article 1, paragraph 2(c), of the Convention concerning freedom of choice of employment and the possibility for each worker to qualify for, and use their skills without any discrimination. The Committee also refers in this respect to its comments concerning the application of Convention No. 111.