Unions open talks with employers ahead of benefits debate

Social affairs minister Hans Vijlbrief is seeking support in parliament for a new deal on pensions and benefits, after the trade unions walked out of negotiations with the government and opened their own talks with employers instead. MPs will debate the standoff on Thursday.

The unions plan to go ahead with strikes regardless, starting with a public transport stoppage on June 24, when trains, buses, trams and the metro will not run before 8am.

The cabinet wanted to raise the state pension age (AOW) faster, halve unemployment benefit (WW) from two years to one and cut disability payments (WIA) – savings of €6.5 billion in all. It shelved the plans last month after the unions threatened to strike, but said the €6.5 billion still had to be found.

That was not enough for the three union federations – FNV, CNV and VCP – which walked out of negotiations on May 28 and said they will not return until the cuts are off the table for good.

Talks without the cabinet

Rather than wait for the government, the unions and the employers’ organisation VNO-NCW are now working on a joint plan of their own to put to ministers. Its chairman, Coen van Oostrom, has rejected the cuts himself.

Vijlbrief, who says he does not want to discuss money yet, wants both sides back at the government’s table before the summer. VVD parliamentary leader Ruben Brekelmans has said he will not sign any deal that saves less than €6.5 billion.

What the cuts mean

For anyone working and living in the Netherlands, the plans would have an impact if they lose their job or fall ill. Anyone out of work for more than a year would drop to bijstand, the means-tested benefit of last resort – a particular risk for those on temporary contracts.

The cabinet also wants to lower the maximum daily wage used to calculate payments, cutting parental and maternity pay for higher earners.

The Jetten cabinet holds just 66 of the 150 seats in parliament and needs opposition support to pass anything.