Redundancy law reform in doubt (update)
The future of cabinet plans to reform redundancy laws were in doubt on Thursday after unions and employers failed to reach a joint stance on the issue.
Social affairs minister Piet Hein Donner had asked the organisations for their recommendations, as is customary when new legislation is being drawn up.
Union federations FNV, CNV and MHP spoke of a ‘unique situation’ and accused employers of increasing tensions by calling for further limits on golden handshakes.
The government’s SER advisory body said the difference between the unions’ and employers’ position had never been so great, NOS reported.
Donner’s plans involve reducing the involvement of the courts in redundancy agreements and putting an age-related limit of €75,000 or €100,000 on pay-offs. Unions oppose reducing court involvement while employers want to limit pay-outs to half a month’s salary per year worked rather than the proposed full month.
CNV chairman René Paas said the employers’ position had damaged trust between the two sides. MHP chairman Ad Verhoeven said older workers, who find it difficult to get a new job, would be particularly hard hit.
The employers, in turn, accused the unions of ‘slamming the door behind them’. Golden handshakes were not meant to allow workers to do nothing until they were 65, but to tide them over to their next job,’ said Loek Hermans, chairman of small business association MKB.
It is now unclear what action Donner will take. Two of the three coalition parties – Labour and ChristenUnie – have great reservations about the plans. A majority of MPs, therefore, are likely to be against.
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