CONTRACT AND AGENCY LABOUR COUNTRY REPORT ICEM CONTRACT & AGENCY LABOUR CAMPAIGN ICEM CAL CAMPAIGN
Contract and Agency Labour in the Netherlands 4 Increase in fixed term contracts 5 CAL bottle necks in The Netherlands 6 Impact of the economic crisis on decent work 8 Dutch labour law and union freedom 10 Freedom of association 10 Collective bargaining 11 Permanent work, permanent jobs 12 Mariëtte Patijn and Marcel Nuyten, FNV Bondgenoten 14 Recent success stories 14 New collective agreements for temp staff 14 New foundation monitors compliance temping CBA 14 Special CBA for Eastern European migrant workers off the cards 14 Innovative ideas: hotline to report abuse 14 Cleaning actions 14 BOXES Contract and agency labour 3 CAL bottle necks in The Netherlands 6 CAL versus non CAL workers in the Netherlands 9 Trade union membership in 2010 9 20 Rue Adrien Lachenal 1207 Geneva, Switzerland TEL - +41-22-304-1840 FAX - +41-22-304-1841 CONTRACT AND AGENCY LABOUR The replacement or reduction of permanent, direct employment through the use of Contract and Agency Labour (CAL) and other forms of precarious work has become a priority issue for many workers and their trade unions all over the world. Each year, more and more decent jobs are lost to sub-contracting companies or agencies which usually offer workers little or no job security, few benefits, if any, and substandard working conditions. This results in a two-tier split among the workforce, with often dire consequences for workers conditions and unions abilities to represent them. The use of CAL is now so widespread that it has become a top priority for many of the International Federation of Chemical, Energy, Mine and General Workers Unions (ICEM) affiliates. The ICEM s CAL Campaign creates a space for trade unions throughout the world to share CAL tools and experiences, and to support one another in attempts to prevent the degeneration of direct employment relationships. This brochure is one in a series that will focus on CAL issues country-by-country and, most importantly, highlight the ways in which trade unions are dealing with CAL. http://cal.icem.org contract.labour@icem.org 2010 CAL COUNTRY REPORT THE NETHERLANDS 2 CAL COUNTRY REPORT THE NETHERLANDS 3
CONTRACT AND AGENCY LABOUR IN THE NETHERLANDS AS IN MANY OTHER COUNTRIES, THE USE OF CONTRACT AND AGENCY LABOUR (CAL) IS VERY COMMON IN THE NETHERLANDS. THE ACTUAL AMOUNT OF PEOPLE WORKING IN SO CALLED FLEXIBLE WORKING RELATIONSHIPS IN THE NETHERLANDS INCREASED FROM 2005-2008, AND DECREASED IN 2008 AND 2009 DUE TO THE GLOBAL ECONOMIC CRISIS. CAL WORKERS AND ESPECIALLY AGENCY WORKERS WERE AMONGST THE FIRST TO BE EFFECTED BY THE CRISIS: THEY SIMPLY LOST THEIR JOBS. Official figures indicate that 1.9 million people in the Netherlands work for temporary work agencies, are employed on fixed term contracts, on call contracts or are bogus self-employed. Almost 20% of the Dutch workforce are employed in such jobs for twelve or more hours a week. A further 8% have precarious jobs of less than twelve hours per week. Official figures do not give a full picture of how many workers are in precarious employment. For example, in the last number of years there has been a dramatic increase in the number of self employed people in the Netherlands, with self-employed workers numbering 629,000 in 2009 (equating to 6% of the working population). Although the working circumstances of many self employed people can be considered precarious, they are also not counted as CAL workers. Furthermore, many CAL workers in the Netherlands originate from Eastern European countries. Because they are often employed by rogue traders or gang-masters, their numbers are also not reflected in the official CAL figures. CAL work is most common in the in catering, bar and restaurant industry, but in fact is present in every sector in the Netherlands as more and more catering, cleaning and security staff are employed through subcontracting firms. In the ICEM sectors many companies have temporary work agency offices on site to be able to provide new workers when needed. INCREASE IN FIXED TERM CONTRACTS Increasingly, employers offer their personnel a fixed term contract instead of a permanent contract. Traditionally, fixed term contracts were followed by a permanent contract but now it is more likely that a number of consecutive fixed term contracts are offered. In October 2006 about 20% of all employees had a fixed term contract, not taking into account people working through temporary agencies. In October 2009 this number had risen to 24%, while the number of temp workers had decreased from 5.5% to 4.5%. CAL COUNTRY REPORT THE NETHERLANDS 4 CAL COUNTRY REPORT THE NETHERLANDS 5
CAL BOTTLE NECKS IN THE NETHERLANDS The FNV, the largest trade union confederation in the Netherlands, identifies the following bottlenecks with regard to CAL work and CAL workers in the Netherlands. These issues are the focal points of the Dutch trade union campaign against precarious work. 6 POORER WORKING CONDITIONS Often CAL workers work in environments with high noise levels, and the working pace is a lot higher. 1 2 WORK SECURITY IS ABSENT In cases of reorganisation CAL workers are the first to be dismissed. They are often employed on a number of consecutive fixed term contracts. In Holland employers are allowed to offer three fixed term contracts of up to one year before having to hire someone on an indefinite contract. Often this rule is circumvented by allowing for a one month unemployment period after which the worker is re-hired on yet another fixed term contract. People with temporary contracts are more exposed to 7 sexual harassment and bullying than those with CAL WORKERS a permanent contract. EXPERIENCE Finally, the constant MORE STRESS need to find a new Many factors job is a stressful contribute to higher experience. stress levels for CAL workers. Employers tend to have less tolerance when CAL workers are ill, disabled or pregnant. CAL workers are in a vulnerable position, which gives employers more freedom to discipline them. WORSE BENEFITS Unequal treatment in collective agreements between workers with a fixed term contract and those on an indefinite contract. CAL workers are excluded from various benefits. 3 LOWER WAGES CAL jobs tend to have have lower wages and consecutive fixed term contracts are often used to stagnate wages. 8 LIMITED ORTUNITIES TO STRENGTHEN THE POSITION OF THE CAL WORKER CAL workers have virtually no right to training, career counselling, etc. 9 CAL WORKERS POSTPONE MAKING IMPORTANT LIFE DECISIONS (like marriage, house purchase or children) because of their precarious position. CAL workers have difficulties in obtaining mortgages. 4 LESS SOCIAL security CAL workers often have gaps in their employment and therefore in their social security contributions. When they become unemployed, their social security benefits are less. 10 LIMITED EMPOWERMENT Because of their vulnerable position it is difficult for CAL workers to stand up for their rights. They are also excluded from becoming a member of works councils. 5 UNCERTAIN WORKING TIMES Extremely high levels of availability and flexibility are often demanded of CAL workers. For example, employers may offer 12 hours work but require availability any time over four full days. This has an especially hard impact on the working poor, who often depend on three to four jobs to make ends meet. The availability requirement makes it almost impossible to combine jobs. CAL COUNTRY REPORT THE NETHERLANDS 6 CAL COUNTRY REPORT THE NETHERLANDS 7
IMPACT OF THE ECONOMIC CRISIS ON DECENT WORK THE DUTCH ECONOMY WAS SERIOUSLY AFFECTED BY THE WORLD ECONOMIC CRISIS IN 2009 AND RECOVERY IN 2010 HAS BEEN RE- LUCTANT. THE ECONOMY SHRUNK BY 4% IN 2009, THE HIGHEST DECREASE SINCE THE SECOND WORLD WAR. ONE OF THE EFFECTS OF THE ECONOMIC CRISIS IS THAT THE LABOUR MARKET IS LESS DYNAM- IC: THERE ARE FEWER VACANCIES; PEOPLE WHO HAVE JOBS DO NOT CHANGE JOBS QUICKLY, DEPRIVING THOSE ENTERING THE WORKFORCE AND THE UNEMPLOYED OF JOB OPPORTUNITIES. CAL VERSUS NON CAL WORKERS IN THE NETHERLANDS (first half 2010, working 12 hours or more) PEOPLE WORKING ON PERMANENT CONTRACTS: 5,108,000 PEOPLE WORKING IN FLEXIBLE WORK RELATIONS: 2,628,000 TEMP AGENCIES: 323,000 FIXED TERM CONTRACTS: 1,676,000 SELF EMPLOYED PEOPLE: 629,000 The number of unemployed people grew due to the crisis, mainly because people in precarious jobs were the first to be fired. Export levels dropped due to the world wide decrease in demand, and Dutch households and companies en masse delayed making big purchases and investments. One of the consequences of the economic crisis is that the number of new start-up businesses grew. In the first half of 2010 there were 19% more start-ups than in the same period in 2009. Many of these businesses, however, are one person companies, self employed people, who often decide to start up as a freelancer because it is more difficult now to find a job. Most freelancers work in the creative sector, they are writers, web builders and designers. It is very unlikely that a lot of these start-ups will end up in successful companies because competition is large. In the Netherlands many self-employed people do not earn a living wage. People working for temp agencies, young people who have just left school and people who do not have work experience are the ones suffering most severely from the impact of the economic crisis. People working for temp agencies were the first to be affected as companies production dropped. Many temp agencies collapsed in 2009 as a direct consequence. The reluctant recovery of the economy in the first half 2010 resulted in an increase in the number of temp workers being hired, especially in the chemical industry, the micro chip industry and the car industry. TRADE UNION MEMBERSHIP IN 2010 (figures from the confederations websites) FNV CNV MHP FNV (INCLUDING ICEM AFFILIATED FNV BONDGENOTEN) 1.4 MILLION MEMBERS (DIVIDED OVER 19 TRADE UNIONS). FNV BONDGENOTEN IS THE LARGEST FNV-AFFILIATED UNION. IT IS THE RESULT OF A MERGER OF TRADE UNIONS IN THE INDUSTRY, TRANSPORT, AGRICULTURE AND SERVICES SECTORS. IN EARLY 2010, FNV BONDGENOTEN HAD AROUND 477,000 MEMBERS. CNV (INCLUDING ICEM AFFILIATED CNV VAKMENSEN) 350.000 MEMBERS (DIVIDED OVER 11 TRADE UNIONS). THE CNV VAKMENSEN IS THE LARGEST AFFILIATE OF CNV, REPRESENTING 135,000 MEMBERS. MHP 160.00 MEMBERS (DIVIDED OVER 5 TRADE UNIONS) CAL COUNTRY REPORT THE NETHERLANDS 8 CAL COUNTRY REPORT THE NETHERLANDS 9
Trade union membership levels in the Netherlands saw a sharp decrease between 2005 and 2008. The rise of CAL was certainly a factor in declining membership as CAL workers are traditionally more reluctant to join trade unions. The fall in employment in a number of industrial sectors, where trade union density had been high, also contributed to the decline. However since 2008, and the beginning of the economic crisis, membership levels have increased. Dutch trade unions have launched initiatives to attract new members, targeting CAL workers, younger people, self-employed people and migrant workers. COLLECTIVE BARGAINING Collective bargaining is the primary way in which Dutch trade unions are dealing with CAL. In the Netherlands most collective bargaining is done at industry level, although there are also sectors in which bargaining is mostly done at company level (in the chemical industry, for example). In the last number of years the unions have managed to conclude agreements that include specific chapters on the improvement of the position of CAL workers, for example for cleaners. Union bargaining priorities have included clauses on work security, education and equal pay for equal work for CAL workers. DUTCH LABOUR LAW AND UNION FREEDOM FREEDOM OF ASSOCIATION Organising contract and agency workers is a priority for Dutch unions. Freedom of association is a well established right in The Netherlands. There are no exemptions, every working person, be it industrial workers, civil servant, military, police, temp agency worker, on-call worker, student or self employed freelancer, can become a member of a union. In 2010 twelve new collective agreements were negotiated by FNV which stated that temporary workers may only be deployed in busy times and to cover for absences of other workers in case of illness. If they work longer than nine months in one year, they should get permanent job. There were also thirty four new agreements on the use of certified job agencies (instead of non-certified ones that usually pay lower wages). FNV FOCUSES ON DECENT WORK Under the title of decent work, FNV stands up for workers at the bottom of the labour market. The FNV is of the opinion that employees should earn at least 130 percent of the Statutory Minimum Wage (1,600 Euros gross) for it to be considered a liveable wage. Flexible work should be limited to sick and peak and collective agreements should be properly respected. Individuals are free to belong to the trade union of their choice, or not to belong to one. The collective bargaining agreement (CBA) applies to everyone working in the respective company or sector, regardless of whether they are union member or not. However, people working for temping agencies are often covered by their own temp agency CBA. CAL COUNTRY REPORT THE NETHERLANDS 10 CAL COUNTRY REPORT THE NETHERLANDS 11
// FNV BONDGENOTEN MARIËTTE PATIJN AND MARCEL NUYTEN PERMANENT WORK, PERMANENT JOBS Mariette Patijn and Marcel Nuyten are both union organisers for the Dutch industrial union FNV Bondgenoten, and they have worked to improve the situation of CAL workers for about eight years. When it comes to contract and agency labour, the focus of FNV Bondgenoten has been on people working for temp agencies says Marcel. This approach has been very successful. We have managed to conclude collective bargaining agreements with temp agencies, giving temp workers more security and better access to training for example. Mariëtte adds: this focus is still very necessary as there are still many work places where temp workers are hired and rehired on what really are permanent positions. Our message is: permanent work, permanent jobs. One recent example of what we as FNV Bondgenoten do, are our protests at the Dutch tax department. Traditionally, the tax department would hire temp personnel only at busy times. We think this can be justified. However, we were being informed by our members that more and more permanent positions were being filled with temp personnel. People with a good education receive a special expensive training to be able to become a tax service desk worker, but are nonetheless replaced after three and a half years, when the labour agreement dictates they should hired on a permanent basis by the agency they work for. FNV Bondgenoten used this information to start a campaign on organising and improving conditions for these temp workers. In the Netherlands the tax department is domain of another union, the civil employees union ABVAKABO FNV. Although this union belongs to the same confederation FNV, the insight into how to operate was very much different. ABVAKABO FNV felt that it was their task first and foremost to stand up for the permanent employees, not the temp workers. This is an opinion that we still come across a lot within our own unions says Mariëtte, many of our organisers feel that temp workers are another, lesser, category of workers. We do not. Because collaboration with the resident union was difficult and the tax department did not allow FNV Bondgenoten to give out information on the premises, Mariëtte and Marcel organised information stands outside the offices. This proved to be a very successful tactic. The public impression that the tax department gave by not allowing the union to come inside was that temporary staff were left out in the cold. This helped getting public support. A lot of temp workers passed the stands and were pleased to see that someone was standing up for them. It also attracted a lot of press attention: locally and nationally. According to Mariëtte Right now we are talking to the HR department. We would like to see the permanent positions occupied by permanent workers. This is not going to be easy to achieve. In the mean time we try to achieve equal pay for equal work, and for the temp workers to be hired on permanent contracts by the temp agencies. This way they gain at least some security. In the meantime we expand our actions to not just the tax department but to the entire Ministry of Finance. Marcel adds and we continue with our internal fight, convincing our fellow union organisers and negotiators that temp workers are as important to organise and to stand up for as permanent workers. Economic developments in recent years have caused a shift to appear. The growth in CAL is not longer in temp agencies. We now see that companies are employing more and more people on very small temporary contracts, of less than 12 hours for example, says Marcel. This is why we think we have to start focussing not only on temp agencies and temp personnel but also on what we call pulp contracts. People can t make a decent living on these types of contracts. We are asking our negotiators to make this a focal point during new negotiations on collective labour agreements. CAL COUNTRY REPORT THE NETHERLANDS 12 CAL COUNTRY REPORT THE NETHERLANDS 13
RECENT SUCCESS STORIES 1 NEW COLLECTIVE AGREEMENTS FOR TEMP STAFF ABU (ABU (Algemene Bond Uitzendondernemingen) and NBBU (Nederlandse Bond van Bemiddelingsen Uitzend ondernemingen) are the two employers organizations representing temp agencies in the Netherlands. On March 31 2010 two new collective bargaining agreements (CBA) for temporary personnel took effect one negotiated with the ABU, which covers 60% of temporary employment agencies, and the other with the NBBU. The most significant improvement in both collective agreements is that the training possibilities of people working through temp agencies have been expanded. An important difference between the two collective agreements is that in the ABU CBA, workers are paid ABU wages du ring the first 26 weeks of employment, and only after this period, workers are entitled to the same wages as employees of the hiring company. In the NBBU CBA, workers get equal pay for equal work from day one. There are also a lot of very small agencies that do not belong to either organization. The ABU CBA is a generally binding CBA, meaning that the CBA also counts for those organizations which are not organized by either ABU or NBBU. NEW FOUNDATION MONITORS COMPLIANCE TEMPING CBA The SNCU (Stichting Naleving CAO voor Uitzendkrachten - the Foundation for Compliance with the Collective Agreement for Temporary Employees), is a partnership between employers and employee organisations in the temporary work sector. Under the umbrella of the SNCU, these groups stimulate and monitor compliance with collective agreements within the temporary employment sector. These are: the Collective Agreement for Temporary Employees for ABU members the Collective Agreement for Temporary Employees for NBBU members the Social Fund Collective Agreement for the Temporary Employment Sector The SNCU monitor, for example, the correct payment of wages. Temp agencies may lose their certification if they fail to comply with the CBA. FNV Bondgenoten, also board member of the SNCU, is now trying to expand the agreement, aiming to achieve a requirement that all CBAs included a requirement that companies can only work with certified companies or subcontractors. 2 SPECIAL CBA FOR EASTERN EUROPEAN MIGRANT WORKERS OFF THE CARDS Thanks to the efforts of trade unions an inferior collective agreement for Polish workers and other Eastern European workers was defeated. A cooperation of temp agencies tried to negotiate a special CBA for Polish and other Eastern European migrant workers, which would allow for these workers to be paid significantly less than other workers doing the same work. Dutch unions joined forced to protest against this development and the one union which was willing to do business with the temp agencies pulled back. Finally Dutch le gislative authorities decided that such a CBA would be based on nationality only and would therefore be discriminative and unlawful. 5 CAL COUNTRY REPORT THE NETHERLANDS 14 CAL COUNTRY REPORT THE NETHERLANDS 15 3 INNOVATIVE IDEAS: HOTLINE TO REPORT ABUSE In order to deal with noncompliances in the meat industry FNV Bondgenoten launched a special anonymous hotline and encouraged its members to be vigilant in reporting abuses. CLEANING ACTIONS In 2010 cleaners across the country fought for better wages and more respect from their employers. Supported by FNV unions, cleaners in the public and private sectors, including those contracted to work for companies such as Shell and Akzo Nobel, went on strike and organised protests lasting more than 9 weeks. The cleaning actions represented a new phenomenon in the Netherlands, as traditionally unionisation rates among cleaning workers were low due to the dominance of CAL in the sector. New, direct organising techniques and motivated union organi sers resulted in a trickledown effect with many cleaners joining their colleagues, no longer afraid of the repercussions. The actions gained a lot of support from the general public and finally were conclu ded by a new collective agreement that promised an increased salary and better education possibilities. A video highlighting the cleaning workers industrial action can be viewed at http://www.fnv.net/dvd/ schoongenoeg.zip. 4
CAL COUNTRY REPORT THE NETHERLNDS / GREENMONDAY FOR ICEM CAL CAMPAIGN