Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

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

Implementation of an active employment policy. The Committee notes the information provided in the Government’s report for the period ending in June 2008, and the comments provided by the Trade Union Confederation of National Federation of Middle and Higher Level Employees’ Unions (MHP), the Netherlands Trade Union Confederation (FNV), and the Christian Trade Unions in the Netherlands (CNV) received in August 2008. The Government indicates that economic growth was robust over the period 2006–08, with GDP rising by 2.75 percentage points in 2006, 3 percentage points in 2007 and 2.25 percentage points in 2008. The Government indicates that the positive economic developments also translated into the labour market, with increasing labour shortages caused by rising vacancies with rapidly falling unemployment. Furthermore, due to labour market tightness, people previously disengaged from the labour market found their way into employment. The Government projects, however, that the financial turmoil is likely to disrupt the economic outlook from 2008 onwards. As of 2007, the total participation rate was 76 per cent. In view of the ageing society, the Cabinet committed itself to achieve a participation rate of 80 per cent in 2016, and intends to make a substantial step in that direction by 2011. In its comments, the MHP questions the link between the entry of severely disengaged persons into the labour market and labour productivity. In this regard, the MHP states that people who are severely disengaged from the labour market have yet to find employment, and that there was still a clear need in the Netherlands for ever greater innovation so as to encourage productivity. The FNV observes that there has been an increase in unemployment, and considers that structural unemployment in the lower segments of the labour market will persist, which will require specific measures to be taken in response. Furthermore, the FNV expresses its doubts as to whether the Government’s policies are compatible with the requirement that the policy ensures freedom of choice of employment and the fullest possible opportunity for each worker to qualify for, and to use his/her skills and endowments in, a job for which he or she is well suited. The Committee asks the Government to continue to provide information on the impact of the active labour market measures on the current employment situation and in particular to indicate how such measures are decided on and kept under periodical review within the framework of a coordinated economic and social policy. The Committee also invites the Government to provide its observations on the concerns raised in respect of the compatibility of the employment policy pursued with the requirements of the Convention.

Older workers. The Committee notes that the labour participation rate of persons aged between 55 and 64 rose to 50.9 per cent in 2007. The Government indicates that this increase in employment among older workers is an indication that policies aimed at extending working lives are effective. The Government has drawn up a “45 plus” action plan which is aimed at reducing unemployment among people aged 45 years and above. The Ministry of Social Affairs and Employment is supporting the implementation of the action plans by means of a national action team whose task it is to intensify cooperation between regional and local parties involved in the reintegration processes. The Centre for Work and Income is also deploying 300 advisers to provide services for people in this age group. As of February 2008, the goal of 30,000 additional placements was achieved, however efforts continue to be made to further reduce unemployment in this age group. Furthermore, the Government indicates that it set up a Steering Group (Grey Works) to provide a national communication programme in order to remove prejudices against older workers, to promote exchange of practical solutions among employers and employees and to reach agreements with and between social partners on stimulating employees to work longer. The Government also refers to the temporary subsidy scheme for employers and branches to encourage age-awareness policies by developing innovative human resources policies in order to improve sustainable employability of older workers, which will end in the middle of 2010. In its comments, the CNV expresses its belief that it should be made easier for people to be able to work after the legal age of retirement, i.e., 65. In this regard the CNV indicates that it promotes the removal of any “forbid” rules in the Collective Labour Agreements that make working after the age of 65 more difficult. The MHP has also expressed its concern on the implementation of the old-age insurance levy and its impact on stimulating older workers to work longer. The Committee asks the Government to continue to provide information on these and other measures implemented to retain older workers in the labour market.

Youth employment. The Government indicates that unemployment among young people has continued to fall in recent years, falling from 13.5 per cent in 2004 to 9.2 per cent in 2007. The rate of youth unemployment is still twice as high as the average unemployment level. The Government indicates that the Youth Unemployment Task Force reached its target of helping 40,000 young persons find jobs, and was accordingly disbanded in the spring of 2007. The Task Force advised the new Cabinet to sustain its efforts to reduce youth unemployment, and made recommendations for tackling the hard core unemployed youth at the local level, introducing national evaluation criteria for preparatory secondary vocational education and upper secondary vocational education. The Government indicates its intention to implement these recommendations. The Government also indicates that it has appointed a Minister for Youth and Family, in consideration that a comprehensive approach to youth and family policy is extremely important. On 28 June 2007, the Minister of Youth sent his programme “All opportunities for all children”, including policies relating to the transition from school to work, to Parliament for its consideration. In this regard, the CNV refers to the Government’s initiative, “Work-Learn Duty” for persons under 27 years of age, whereby persons of this age group either learn at school, or have jobs, or a combination of the two. The CNV indicates that it agrees with this proposal in so far as it means that municipalities have the duty to assist young persons with an offer of a relevant learning trajectory or a suitable job. The CNV states that this does not mean that pushing young persons as fast as possible into any job is always the right solution from the perspective of long-term participation in the labour market. The CNV also indicates that there should be scope for the introduction of exceptions to this initiative, for example young single parents. Furthermore, the CNV states that provision should be made for persons who have not been offered a job or learning trajectory to claim benefits. The MHP also indicates that the Government’s plans to require employers to allow their workers to obtain a national starting qualification if they do not already possess one offers a comprehensive way forward. The Committee asks the Government to continue to report on measures taken to meet the needs of young persons, and how these ensure that young persons have the fullest possibility to qualify for and to use their skills and endowments for jobs for which they are well suited.

Ethnic minorities. The Government indicates that, while the labour market position of ethnic minorities is less favourable than that of other nationals, there have been some positive developments. A broad-based programme is being developed to reduce language disadvantage and prevent early school leaving. The Social and Economic Council observed that the problem was not lack of a policy, but rather a need to improve the implementation of existing policy. The drive to combat early school leaving will continue and will be reinforced through cooperation between Government, parents, schools, businesses, social workers, youth services, municipalities, police and the Ministry of Defence. The Government also indicates that it supports the recommendation of the Social and Economic Council to develop a strategy aimed at raising awareness of prejudices and reinforcing positive perceptions across society. The Government is presenting its Integration Delta Plan aimed at improving the quality of integration so that more people will be able to complete the integration process at a higher level and participate economically, socially and culturally in society. In addition, the Government has subsidized several projects, many of which involved the close cooperation of social partners and the rest of civil society, aimed at improving the labour market position of ethnic minorities. The Government is requested to continue to provide information on the measures to promote the access by ethnic minorities to the labour market, including information on the steps taken to ensure better implementation of such measures.

Article 3 of the Convention. Cooperation with social partners. The Committee notes that the Government, social partners, provinces, municipalities, implementation offices, as well as individual employers and employees are jointly responsible for the functioning of the Dutch labour market and the Dutch employment policy. The Government further indicates that a Participation Summit was held in June 2007 where the Government consulted with the labour foundation (central employers’ and employees’ organizations) and with the Association of Dutch Municipalities. The Participation Summit resulted in a tripartite policy commitment by which all partners acknowledged the urgency, challenges and outcome of the analysis related to the labour market, and committed themselves to raising effective labour participation rate to 80 per cent, to increase the adaptability of the labour market and to create labour market opportunities for vulnerable groups. The Government is requested to continue to report on similar such initiatives to ensure that representatives of employers’ and workers’ organizations and representatives of other sectors of the economically active population are involved in the formulation and implementation of active employment policies.