Please find summary of the recent agreement in the Netherlands in this e-mail

Recent agreement (October 19th) on the new collective agreement in the metal and engineering industry (Metalektro). The sector employs about 180.000 metal workers.

Wage increase:

- On December 1st 2007 a lump sum payment of € 225 for all employees;

- On January 1st 2008 an increase of all wages with 3%. This increase with 3% has a minimum of € 990 a year. So all wages below € 2.750 a month will increase with more than 3%, f.e. 4,1% for a monthly wage of € 2.000. In total this minimum will have an estimated effect of 0,6% extra;

- On July 1st 2008 an increase of all wages with 0,5%;

- On January 1st January 2009 an increase of all wages with 2,5%;

- On July 1st 2009 an increase of all wages with 1%;

- On January 1st January 2010 an increase of all wages with 0,75%:

- On 1st January 2008 the wages of young employees (18 - 23 years) increase extra with € 300 - € 380 a month for the lower pay scales, with € 23 – 115 a month for the middle wage scales and with € 59 – 118 a month for the upper wage scales.

The sum of increases is 7,75% in 27 months. The effect is 7,97 % due to increases on increases. Including the minimum or floor in the increase of 1st January 2008 the outcome is about 8,6%, the effect of the wage increase of young employees not included.

Training (common demand)

- In 2009 all employees have the right to 1 training day of their own choice and in 2010 this will increase with 1 day, so employees have 2 days in total. These training days are employee-days and are separated from the regular training that employers find necessary for a proper job performance;

- In 2008 a special short training-program will be developed in order to provide for the employee’s wants for the use of his training days;

- Every 5 years the employee have the right to a scan on competencies he earned by training and work experience. The outcome will possibly increase his qualifications or show which specific training he needs for a higher qualification.The employer pays this scan until a maximum of € 750.

- Employees with a contract of apprenticeship who are working 4 days a week and are learning in a vocational training 1 day a week will have a wage increase of 10% after successfully completing the half of their training period. They are paid fulltime;

- After successfully completing their vocational training the apprentice gets a contract of undefined duration;

- The budget of the Sectoral Fund on labour Market and Vocational Training will increase from € 20 million to € 30 million a year. Next to the items mentioned above various project and pilots have been agreed on f.e. personal budgets, information, employability, employment of unemployed workers, intersectoral training. The unions and the employers’ organisation will develop a program and budget for the agreed innovations.

Working times

- Despite of the abolishment of several limits and protections in the new Working Times Law companies in the sector may only use this new legal possibilities if agreed with unions.

- The extra holidays for elder employees (50 years and older) are replaced by another system. Employees who are on 1st of 2009 50 years or older will keep their extra holidays and the perspective they had on more extra days each year in the old system. All other employees have 2 more holidays a year, so they will have 27 holidays a year plus 13 days if they work 40 hours a week. For the employees between 40 and 50 years there is a temporary provision of 3 or 4 holidays a year extra. Next to this change of division of holidays a working group is appointed to develop regulation and instruments to keep workers healthy and employed until their retirement. Special measures will be taken for workers in jobs with high physical demands.

Pension scheme

- On 1st January 2008 pensions will be increased with the wage increases (3,5%) plus an extra increase of 1,25% because of lower indexations during a few years in the near past;

- On 1st January 2008 the pensions of the retired employees will increase with the inflation rate (1,3%) plus 1% extra for the same reason as above;

- In the next years until 2011 the transitional provision in the pension scheme will be fully funded so that employees younger than 55 years have also a guarantee that the conditional promise on early retirement has become a pension. For this reason the sectoral pension fund will reserve about € 900 million the next years.

Sickness and disability

- In order to compensate employees for loss of income due to sickness or disability after the period of 2 years of continued pay by the employer a collective insurance will be set up. This insurance will provide a supplement to the national social security. The employers will pay a part of the fee;

- (Partly) disabled employees will profit from extra provisions to find a new job if they can not keep their old job;

- The program to improve working conditions and to set up minimum standards will be funded by € 1 million a year.

Other issues

- In order to prevent employment of foreign workers or temporary workers by dishonest agencies the companies in the sector have the obligation only to deal with agencies who have a NEN certification;

- Union members will receive compensation for their costs of union membership by reduction of the disability insurance fee. New employees will be offered a year free union membership which will be funded by an extra contribution of employers to the sectoral social fund.

The unions are consulting their members now. It is expect ed that the consultation to be closed end November. The members are reacting very positively on this agreement, a large majority to agree is expected.