Two-year deal in Dutch metal industry

Unions and employers in the Netherlands have signed a key agreement covering 180,000 engineering employees. The two-year deal runs from 1 July 2000 and provides for a 3.8% pay increase from 1 September this year, followed by a 3.45% increase from 1 October 2001. This is close to the union target over the two years of 8% and in the first year is ahead of inflation, currently at 2.4% (May).

Other improvements, include an extension of childcare payments which can now also be made for after-school care for children aged between four and 12. The overall sum set aside for childcare goes up from 0.2% to 0.3% of the total pay bill. Trade union reps get improved protection against dismissal - employers must discuss their proposals with the unions beforehand - and there are better arrangements for stand-by payments and for the treatment of overtime worked by part timers.

There is a commitment to negotiate over a change in the structure of the agreement, which would allow greater flexibility at company level on some issues. Negotiations on what will be subject to local flexibility have not yet been completed.