Companies delay sacking staff pending new laws: union

Thursday 28 June 2012

Large companies are delaying plans to sack significant numbers of staff until 2014 in the hope new laws will have made it cheaper, the FNV trade union federation said on Thursday.

Union officials told a parliamentary committee meeting they would then be able to ‘get rid of older workers for peanuts’.

A narrow majority of MPs want to make it easier and cheaper for companies to sack staff and the plans are likely to be central in the forthcoming election campaign.

The changes will allow firms to sack staff without first referring to the courts or the national jobs office UWV for its approval. Redundancy pay would also be slashed to a maximum of six months salary.

Union official Catelene Passchier told the committee she feared a ‘free for all’ would develop, and said there are already ‘worrying signs’ emerging from the construction sector. The union also fears the measure will boost unemployment.

Cabinet

Ministers argue the measures will boost employment because employers will not be worried about the high cost of reducing staffing levels when the economy dictates it.

In addition, they will make it easier for workers to switch jobs because they won’t hang on to a position they don’t like or are no longer able to do in the hope of getting a generous pay-off.

Ministers intend to send draft legislation to parliament in the autumn. Whether or not it is accepted depends on the make-up of the new parliament after the September 12 vote.

© DutchNews.nl