Unions want bridging loans for wages - FD

Tuesday 11 November 2008

The country’s largest trade union federation FNV wants the €9bn that has been saved for unemployment benefits (WW) to be used to keep jobs at companies hit by the current credit crisis, reports Tuesday’s Financieele Dagblad.

The trade union federation plan is to use unemployment funds as a temporary bridging loan for wages (LOK). This would be an alternative to a shorter working week or collective redundancies at firms affected by the credit crisis, the paper says.

Staff for whom there is no work would remain in employment with the firm receiving 70% of their wage (the payment level for unemployment benefit) from the unemployment fund in the form of a temporary credit.

This would have to be paid back after six months or extended for another two periods of six months. In the meanwhile, employees would follow compulsory training courses.

The government, employers and unions are due to meet next week to discuss ways to limit the effect of the current credit crisis on jobs. See separate story.

© DutchNews.nl

Comments have been closed for this article.