Unions refuse court redundancy rules

Unions will not accept new court guidelines on redundancy pay which come into effect on January 1, the Financieele Dagblad reports on Tuesday.

‘If employers want to use the new formula [for calculating pay-outs], then there will be conflict,’ Jaap Jongejan of the CNV-affiliated manufacturing union told the paper.
With the number of compulsory redundancies in Holland expected to grow because of the economic downturn, the unions’ position opens up the way for considerable industrial unrest, the paper says.
Until now, district court-approved redundancy packages included one month’s salary for every year worked for the under 40s, with higher rates for older staff.
But earlier this year, judges agreed to reduce the provisions, arguing that it was easier for people to find new jobs. Experts estimate the new formula for calculating redundancy pay will cut the cost to employers by some 10%, the paper says.
For an earlier article on reforming redundancy pay, click here

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