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Employers, Dutch Unions Reach Terms in ‘Heavy Metal’ Sector

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9 May, 2011

Following agreement in the Netherlands in the light metal and electric-technical sector last month, Dutch unions and the employers’ grouping Metalektro reached terms on 19 April in the heavy metal sector. The new accord runs for 26 months and covers 150,000 metalworkers employed by some 1,300 companies, including DAF Trucks, Scania, ASML, and NedCar.

The agreement is similar to the earlier metalworkers agreement covering 330,000 workers on wages, training and education, and restrictions on labour agencies. While the light metal contract pays 4.45% in four steps over the next 18 months, the heavy metal one pays out 4.25% but 4.75% in total, taking into account bonuses the employers’ association agree to pay for reorganisation of the pension scheme effective 1 January 2012.

Metalektro is bargaining with FNV Bondgenoten, CNV Vakmensen, and De Unie in the Dutch metalworking sectors. There is one major bargain remaining and that is in automotive, where 90,000 workers will have a contract expire on 1 June.

The settlement in heavy metal recognised the shortage of skilled staff due to early retirements and redundancies and in turn made the sector more attractive for young workers. The agreement removes minimum levels of wage rates, allowing workers age 22 or over to progress into higher-paid jobs. The new accord also grants excellent industry-paid training and education opportunities. These areas are key and stand at the heart of this agreement.

Of further importance, and similar to the one in light metal, the agreement has strong language on the use of short-term contract workers provided by agencies. The contract reads that work can only be outsourced to labour-hire firms that have collective agreements with the unions, mainly ones associated with Stichting Normering Arbeid (SNA).

FNV Bondgenoten said the agreements so far indicate that the metal sector in the Netherlands is poised to lead Dutch economic recovery.