Wages rise by 4.5% in first quarter, employers call for calm

Wages increased by an average of 4.5% in the first three months of this year, compared with a year ago, according to new figures from national statistics agency CBS.

Taking inflation into account, the actual increase was 2%, the CBS said on Thursday.

Private sector wages rose by an average of 4.9%, well above the 3.4% average increase in public sector pay. Housing corporation staff benefitted with the biggest increase of 8.1%, and construction sector workers by 7.2%.

The figures cover union-negotiated pay deals that stretch over a year and may also include a “catch-up” element in sectors where wages have lagging behind.

CBS chief economist Peter Hein van Mulligen said wages have been rising steadily over the past few years. “One sector may be going up more than another, and the civil service may be a bit behind, but in general workers don’t have much to complain about,” he said.

However, rising inflation in the coming months and higher energy prices impacting production will play a role in developments in the coming months, he said.

Employers’ organisation AWVN, which monitors wage developments closely, said that high wage demands will hit the investment climate in the Netherlands and has called for calm.

“It is a worrying situation,” a spokesman told news website Nu.nl. “A lot of jobs are being lost through reorganisations.”

The FNV trade union federation, the biggest in the country, has set a target of 6% for this year’s pay negotiations.