Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

Employment Policy Convention, 1964 (No. 122) - Netherlands (Ratification: 1967)

1. The Committee notes the information contained in the Government’s report for the period ending June 2006, which includes the National Reform Programme for the Netherlands 2005–08 and a memorandum explaining how the social partners contributed to the National Reform Programme (NRP). It also notes the comments included in the Government’s report formulated by the Trade Union Federation for Middle and Higher Level Employees (MHP).

2. Articles 1 and 2 of the Convention. Labour market and employment policy. The Government indicated in its report that the economic growth rate has been below the EU average, however, an increase from 2.75 to 3 per cent was predicted for 2006 and 2007. The unemployment rate rose to 6.5 per cent in 2005, but this was expected to fall to 6 per cent in 2006 and 5 per cent in 2007. The main priorities of the NRP were to increase labour participation (in particular that of older, women and immigrant workers), to have moderate wage increases and to increase labour productivity. As already requested in its 2005 observation, the Committee would appreciate receiving the results of the evaluation done by the Government and the social partners on the difficulties encountered and the results obtained with respect to the employment policy orientations included in the NRP.

3. In this regard, the Committee recalls the concerns expressed by the Netherlands Trade Union Confederation (FNV) with regard to the impact on the labour market of the early retirement and pre-pension measures introduced by the Government. In its report, the Government indicates that measures to achieve the goals set out in the NRP included the reform of the Unemployment Insurance Act (WW) to encourage unemployed persons to find a new job quickly by shortening the duration of the entitlement to the benefit, in particular for older workers. It also created financial incentives to prevent older workers from becoming unemployed and to stimulate employers to invest in their employability by recovering up to 30 per cent of the WW expenses from the former employer. These measures were implemented on 1 October 2006. In this respect, the Committee asks the Government to include in its next report detailed information on the impact of the reform of the WW and other measures taken to activate and improve labour market dynamics have had on promoting the re-entry into the labour market of unemployed persons (Articles 1 and 2 of the Convention).

4. The Government indicates that an agreement had been reached with the social partners with respect to introducing modest wage increases in order to increase competitiveness in the global market. A 0.8 per cent wage increase was agreed for 2005. The Committee would appreciate to continue receiving information on the efforts made by the Government and the social partners concerning the impact on employment creation of measures taken with regard to income and wages.

5. Youth employment. The Government indicates that a number of young persons had been helped into employment thanks to the efforts of municipalities, the Centre for Work and Income, small and medium enterprise action teams and the Youth Unemployment Taskforce. The Taskforce aimed to create an extra 40,000 youth jobs by the end of 2007 and, in May 2006, the job counter stood at 30,000. The Government had earmarked €135 million to be spent on tackling youth unemployment and early school leaving through creating additional trainee and apprenticeship places and improving student counselling and support. The Committee asks the Government to continue providing up to date data on the impact such measures have had in overcoming the difficulties in finding lasting employment of young workers entering into the labour market.

6. Ethnic minorities. The Government also reports that initiatives had been taken to counter negative images and discrimination against ethnic minorities in the labour market such as the development of guidelines for non-biased psychological tests and projects to encourage dialogue in workplaces. In addition, ten projects have been launched as part of the Broad Initiative on Social Cohesion, aimed at improving the position of ethnic minorities in the labour market. The Committee recalls that Convention No. 122 has a “critical role to play in combating poverty and promoting social cohesion” (paragraph 495 of its 2004 General Survey on promoting employment) and asks to be kept informed on the impact of the measures taken to promote productive employment for ethnic minorities.

7. Older workers. In reply to previous comments, the Government indicates that it has decided to stop providing tax facilities for schemes aimed at pre-pension before the age of 65 as of January 2006. In addition, a “Grey Works” Steering Group was established in 2005 to promote the advantages of employing older workers. A temporary subsidy scheme to encourage age-awareness policy was also launched in 2005 and ran until 2007. In this connection, the Committee refers to point 3 of this observation and asks the Government to provide information on how effective the measures implemented have been in increasing the participation rate of older workers.

8. Article 3. Participation of the social partners. The Committee notes the comments of the MPH indicating that, while the activation idea behind the reforms to the WW are shared by the Government and the social partners, the reform was based in part on the Government’s objective to economize, which – although acknowledged – the trade unions have never accepted as a necessity. The Committee recalls that the Convention asks governments to ensure that the workers’ and employers’ organizations as well as other interested groups are to be consulted “with a view to taking fully into account their experience and views”. It asks the Government to continue providing information on the manner in which the views of employers and workers and other affected groups are taken sufficiently into account in the development, implementation and review of employment policies and programmes.