Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Netherlands (Ratification: 1993)

The Committee takes note of the information provided by the Government in reply to the communication of the Netherlands Trade Union Confederation (FNV) concerning the Jobseeker Opportunity Act (WIW) which came into force on 1 January 1998.

In its communication, the FNV explained that the WIW aimed at providing access to the labour market to long-term unemployed and jobless young people by subsidizing their posts within enterprises and institutions. However, the FNV alleged that the subsidies were only granted on the condition that the workers concerned were not paid more than the legal minimum wage without taking into account the nature and the importance of the functions performed. The hourly wage for the WIW job during the first two years could not exceed the hourly minimum wage. In addition, the subsidy paid for the job was based on a 32-hour working week with the result that the total income of WIW workers would be 8/9ths of the legal minimum wage. If it was decided after two years to transform the job into a job of unlimited duration, it would be permitted to pay a maximum of 120 per cent of the legal minimum wage for the applicable 32-hour working week following a procedure to be defined in the legislation. The FNV believed that the law in question (WIW) was in contravention with the principle of free collective bargaining in terms of fixing wages and other working conditions.

For its part, the Government explained that the WIW formed an integral part of the entire range of measures taken in order to combat long-term unemployment effectively. It was expected that the scheme imagined would aim at the creation of 40,000 extra regular jobs which would be taken by former unemployed people. The Government specified that the WIW left the content of the labour agreement to the employees and employers imposing no restrictions in respect of the substance of collective bargaining agreements. Instead, the WIW determined the nature and the extent of the subsidized posts that could be offered by employers. In its latest communication, the Government added that on 12 June 1998 a collective labour agreement was concluded between the Association of Dutch Local Authorities and the trade unions representing the workers covered by the WIW. The new collective labour agreement was applicable to workers who would start working after 1 January 1999 as well as to workers who were, before its entry into force, employed under the Youth Work Guarantee Act or under other schemes regulated by the WIW. In addition, the collective agreement took into account work experience when integrating workers into its pay scales; it was also stipulated that former WIW workers might earn 120 per cent of the legal minimum wage as soon as they reached the age of 64 and that they were integrated into the collective labour agreement on the basis of their age from the age of 57 upwards. It was further agreed that the parties would examine the method of payment of workers falling into the WIW, considering the necessity, the desirability and the feasibility of introducing a pay system based on job evaluation; finally the parties aimed at setting up a pension scheme by 1 January 1998.

According to the facts brought to its knowledge and taking into account the collective agreement concluded between the Association of Dutch Local Authorities and the trade unions representing the workers covered by the WIW, the Committee is of the opinion that this situation is not incompatible with the Convention; however, it considers that recourse to such schemes on a successive basis could raise problems and therefore requests the Government to keep it informed in this regard.

Finally, the other issues addressed in the Committee's previous comments and concerning Articles 1 and 2 of the Convention are still pending and will be examined in the regular reporting cycle.