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

Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th Session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government and the Netherlands Trade Union Confederation (FNV) and the National Federation of Christian Trade Unions (CNV), as well as on the basis of the information at its disposal in 2019.

The Committee further notes the observations and the statistical information submitted by the FNV, the CNV and the Trade Union Federation for Professionals (VCP) which were received on 18 August 2019 as well as the observations submitted with the Governments’ report in 2019.

Articles 1–3 of the Convention. Implementation of an active employment policy. The Committee had previously requested the Government to provide information, including statistics on active employment measures adopted and implemented with the participation of the social partners, and their impact in promoting full, productive and sustainable employment. The Committee notes the statistical information provided by the Government concerning the labour market for the period before the COVID-19 outbreak. The Committee notes that in its supplementary report, the Government indicates that the pandemic has hit the labour market hardly. The unemployment rate has increased to 4.5 per cent in July 2020 (419,000 unemployed). Furthermore, the first quarter of 2020 showed a decline of 2.1 per cent in working hours and the first estimates show a historical drop in the GDP of 8.2 per cent in the second quarter of 2020. The Government also provides information concerning the package of measures adopted in consultation with the social partners to contain the economic impact of the outbreak, support enterprises and save jobs. The Committee notes in this regard that the FNV and the CNV welcome the measures taken by the Government to prevent that the COVID-19 pandemic results in an unprecedented increase in bankruptcy and unemployment. The Committee notes that the Government refers in particular to the Temporary Emergency Measure for the Preservation of Jobs (NOW) which provides for a scheme enabling enterprises that expect to lose at least 20 per cent of their turnover to get a subsidy for 90 per cent of wage costs. The Government indicates that 140.000 firms benefitted with subsidies up to €10 billion covering 2.7 million employees with the first version of the NOW while NOW 2, has benefited 63.000 additional firms and 1.3 million employees. Furthermore, in the framework of NOW2, employers are obliged in the framework of the “Netherlands continues to learn” subsidy scheme to help employees to find another job through counselling, training or reskilling efforts. The objective is to facilitate mobility to those sectors where demand for work is higher, such as health care and logistics. The Government has now introduced a phasing out scheme starting in October 2020 where the eligibility requirement for enterprises has risen to a 30 per cent decrease in turnover. A new package (NOW 3) will run until 2021 based on three pillars: support, help adapting to new circumstances and investment. The “Netherlands continues to learn” scheme will also be extended. The Government also refers to the TOZO scheme for self- employed workers and to the TOGS scheme for enterprises in some specific sectors. The TOGS, which is a one-time reimbursement of €4,000, was replaced by the reimbursement of fixed costs for SMEs addressed particularly to enterprises in the sectors of catering, recreation events, fairs and culture. Enterprises receive a tax-free compensation of up to EUR 50,000 to cover their fixed expenses. The Committee highlights the importance of these measures aimed at stabilizing livelihoods and income and restoring an enabling environment for enterprises. The Committee welcomes the fact that these measures have been the object of close collaboration and consultation with the social partners. The Committee requests the Government to continue to provide information on the impact of these measures on the labour market, the challenges and obstacles encountered and the measures taken to address them. The Government is requested to include statistical information on the number and size of enterprises that benefited from these measures (including the number of jobs maintained), as well as statistics on labour market participation, unemployment and underemployment disaggregated by sex and age. Please indicate if these measures were applicable throughout the territory, including the special municipalities of Bonaire, St. Eustatius and Saba.

Employment contracts and new legislation. The Committee further notes that according to the Government’s report, the labour market in the Netherlands is characterized by the high number of people working part-time. In 2018, 48 per cent of the workforce chose to work part-time:75 per cent of women work part time, whereas 75 per cent of men work more than 35 hours per week. The Government also refers to the TOFA, that is a temporary bridging measure for workers in flexible contracts that have been laid off after 1 March with a substantial loss of income. It consisted of a one-off gross payment of €1,650 for the months of March, April and May 2020. The Committee notes however that according to the FNV and the CNV observations those workers with flexible contracts (temporary agency workers and workers with fixed term contracts) have been disadvantaged as they have lost their jobs and their subsidies or insurances have come to an end. The Committee notes in this regard the adoption of the Balance Employment Market Act (Wet Arbedismarkt in Balans) which came into force on 1 January 2020.The law introduces a series of changes to the labour market. In order to foster fixed term contracts over flexible contracts, the law establishes that employers will have to pay a lower unemployment benefit contribution for employees with fixed-term contracts. Furthermore, on-call employees who have worked for an employer for more than 12 months have the right to have a contract with fixed hours. The Committee notes that the employer is obliged to make the worker an offer, in writing or electronically, or a fixed amount of working hours equal to the average number of hours the on-call worker had worked during the previous 12 months. The Act also provides that temporary agency workers (designed as “payroll employees”) are entitled to the same conditions of work with respect to wages, working hours, breaks, overtime, holidays that the user enterprise provides to their direct employees. Furthermore, the Act provides that as of 1 January 2020, a transition payment is mandatory whenever you terminate or fail to renew a temporary contract. The Committee requests the Government to provide information on the implementation in practice of the Balance Employment Market Act (Wet Arbedismarkt in Balans), particularly in the context of the COVID-19 pandemic and to continue to provide statistical information on the types of contract (permanent, fixed term, temporary, full-time or part-time) prevalent in the labour market.

Groups more vulnerable to exclusion from the labour market. Older workers. The Committee notes that in reply to its previous comments, the Government indicates that it has continued to dedicate extra funds to strengthen the position in the labour market of those aged 50 and over. In 2016, the 50-plus Works Action Plan was adopted which includes, but is not limited to, a national promotional campaign aimed at employers, experimental pilot measures to increase the amount of jobs available for workers aged 50 or more, as well as funding for advisory meetings on development persons aged over 45. The Government also offers multiple financial incentives for employers to stimulate the hiring of long term unemployed. For example, employers hiring unemployed older workers (aged 56 and above) receive a bonus (“loonkostenvoordeel”; LKV) of up to €6,000. The Government also (temporarily) offers a no-risk policy to employers, taking on the risk of illness for older workers above 56. The age limit of this no risk insurance has been reduced from 63 to 56 years. These measures aimed at empowering older jobseekers, would be evaluated in the beginning of 2020. At the end of March 2019, 307.000 people were unemployed and 268.000 of them received unemployment benefits, that is 18.2 per cent less than in the previous year. The number of unemployment benefits for people between the age of 45 to 55 and between the age of 55 and up declined relatively faster, respectively 24 per cent and 18.8 per cent less than in the previous years. The Government further indicates that measures should be taken by the social partners to change the increasing wage profiles and the collective agreements that make older workers relatively more expensive. The Committee notes in this regard that the FNV and the CNV refers to the untapped labour market potential of older workers and that the rate of employment of older workers remains below the OECD average. The Committee requests the Government to provide detailed information on the situation, level and trends of employment of older workers particularly in the framework of the COVID-19 pandemic, including information on the impact of the measures adopted to stimulate the labour market and to increase opportunities for decent work for older female and male workers. The Government is requested to provide information on the evaluation of the measures aimed at improving the labour market participation of older workers, planned for 2020.

Youth and ethnic minorities. The Committee had previously requested the Government to provide information on the impact of labour market measures implemented to meet the employment needs of young women and men, particularly those with a migration background as well as on the employment situation of ethnic minorities. The Committee notes that the Government only refers in its 2019 report to the entry into force of the Participation Act applicable to all workers with disabilities that enjoy working capacity which replaces the Young Persons with Disabilities Act (Wajong). The Young Persons with Disabilities Act (Wajong) will only be applicable to those workers without working capacity. In order to foster labour market participation of workers with disabilities, the Participation Act provides that workers which resume work will continue to perceive the disability benefit provided for in the Wajong for an additional period of five years. The Committee takes note however, that in their observations the FNV, the CNV and the VCP refer to the need to ensure an inclusive labour market for young people and ethnic minorities. The FNV, the CNV and the VCP further highlight that migrant workers are facing a very difficult situation due to the pandemic. They live and work in unsafe conditions and are unable to keep social distancing or access personal protection equipment or facilities. Most labour migrants in the Netherlands work in vital sectors such as food supply, distribution, meat and poultry processing, construction, agriculture and logistics. The workload in these sectors is immense and regulations related to social distancing and hygiene precautions are often not enforced at workplaces. The Committee requests the Government to provide information on the measures taken to ensure that the diverse policies and actions taken by the Government to contain the negative impact of the pandemic and improve the labour market situation, also benefits those groups and individuals that have more difficulties to enter and stay in the labour market and which may have been made particularly vulnerable by the outbreak, in particular, young persons, persons belonging to ethnic minorities, persons with disabilities and migrant workers.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Articles 1–3 of the Convention. Implementation of an active employment policy. The Committee notes the information provided in the Government’s report for the mainland and the special municipalities Bonaire, St. Eustatius and Saba. The Government indicates that the labour market has continued to recover gradually since mid-2014. However, the rate of the recovery remains a concern. Employment is increasing due to economic growth; in 2015, the number of workers in the Netherlands exceeded 10 million persons. At the same time, the supply of labour is increasing, reflecting a trend in terms of the increasing participation rate of women and as a result of policy measures, such as the gradual raising of the minimum retirement age and the so-called “5 billion package”, a package of incentives adopted in January 2016 to make entering the labour market more attractive financially. The Committee further notes that, according to OECD statistics, the total unemployment rate in the Netherlands decreased from 7.6 per cent in January 2014, to 6.3 per cent in September 2016. With respect to the Dutch Caribbean islands, the Government indicates that the labour participation rate is highest in Bonaire (73 per cent), followed by St. Eustatius (70 per cent) and Saba (64 per cent). The unemployment rate is highest in St. Eustatius (8.8 per cent), followed by Bonaire (6.4 percent) and Saba (2.5 per cent). The Committee notes the Government’s indication regarding the implementation of differentiated programmes to promote labour market participation on these islands. The Government indicates that, in cooperation with the social partners, and pursuant to the 2013 Social Agreement, it has been implementing its National Reform Programmes for 2014–16 through a series of legislative amendments. These are aimed at enabling all to participate in the labour market according to their abilities, and place a particular emphasis on the participation of those with lower incomes. In this respect, the Committee notes the adoption of the 2015 Participation Act which, in combination with the implementation of practical measures such as gradual increases to the tax credits available for persons in employment, provide financial incentives for persons with lower or middle incomes to work. The Committee also notes the call issued by the tripartite Social Economic Council under the EU 2020 strategy to intensify efforts to combat labour discrimination – especially discrimination against non-Western foreigners, people with occupational limitations, members of the lesbian, gay, bisexual and transgender (LGBT) community,
women and the elderly – through tripartite actions. These actions include implementing diversity policies in businesses, enabling work councils to play a greater role in promoting diversity and improving the labour inspectorate’s supervision and enforcement capabilities. The Committee requests the Government to continue to provide information, including statistical information, disaggregated by sex and age, on active employment measures adopted and implemented with the participation of the social partners, and their impact in promoting full, productive and sustainable employment opportunities in both the European part of the Netherlands and the special municipalities, as contemplated under the Convention.

Older workers. The Government indicates that in addition to the gradual adjustments that have been made to increase the retirement age, taking into account longer life expectancies, it has embarked upon a general revision of the pension system. The revisions are intended to equip the pension system to enable it to meet future challenges while maintaining trust and transparency. To this end, elements of the current system are to be retained and combined with flexibility mechanisms that take of spending needs in different phases of life. The Committee also notes the measures adopted, including financial incentives, to encourage employers to hire or retain older workers, and to both encourage and enable older employees to remain in employment longer. These measures include Government-supported “no-risk insurance policies”, probationary placements and the 50-plus Works Action Plan aimed at empowering older jobseekers to actively approach employers. The Committee requests the Government to continue to provide detailed information, including statistics disaggregated by age and sex, on the situation, level and trends of employment for older workers, including information on the impact of the measures adopted to stimulate the labour market and increase opportunities for decent work for older women and men workers.

Youth and ethnic minorities. According to the Government’s report, the introduction of the “Approach to Youth Unemployment” in 2013 led to a reduction of youth unemployment in the second half of that year. The Government has increased its commitment to this programme in 2015–16 since, despite the improving economy, a large proportion of young persons in the Netherlands remain unnecessarily unemployed. The Government indicates that this may be due to their choice of study, poorly developed employment skills, ineffective job search skills and lack of basic qualifications. Placing a special focus on youth with a migration background, the Government has teamed up with educational institutions to develop career skills for youth with municipalities to improve their capacity to match skills with jobs, and with employers through promoting work agreements aimed at increasing job opportunities that inspire and prepare young persons. These efforts have led to increased performance by youth with a migration background. Accordingly, the Committee notes that between 2003 and 2013, the number of young migrants with higher qualifications had doubled. At present, the education level of young migrants approaches that of youth without such a background. The Government recognizes, however, that the increased educational achievement among youth does not necessarily mean success in the labour market, and additional support is necessary to ensure their successful transition from education to work. The Committee requests the Government to continue to provide information on the impact of labour market measures implemented to meet the employment needs of young women and men, particularly those with a migration background. It also requests the Government to provide detailed information on the employment situation of ethnic minorities, including statistical information disaggregated by age and sex, and on measures taken or envisaged to improve their position in the labour market.

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the Government’s report received in August 2013 containing information in connection with its previous comments and notes the observations made by the Netherlands Trade Union Confederation (FNV). The Government indicates that even though the Dutch economy is in recession for the third time since the outbreak of the financial and economic crisis in 2008, mainly as a result of low spending, the Netherlands remains a prosperous country with solid foundations. In 2012, a simultaneous decline in demand for labour and growth of the labour force resulted in a rise in unemployment to 5.3 per cent. The Government indicates that weak economic growth will slow demand for labour in the private sector in 2013. In addition, as a result of shrinking production, unemployment is expected to rise to 6.25 per cent in 2013. The Government stresses that even though it will be the highest unemployment rate since 1996, in European terms it remains relatively low. The Committee notes that in April 2013 the Government entered into a new Social Agreement with representatives of employers and workers in which they all agreed on the way and the pace in which important labour market reforms are to be implemented. Important measures include the reform of the unemployment benefit insurance, on the employment protection legislation, on security of flexi-workers and the implementation of the Participation Act wherein employers commit themselves to the creation of jobs for workers with disabilities. Moreover, the Government aims to simplify and introduce savings to child-related schemes. While the FNV has no objection to the simplification of these schemes, it highlights the negative impact of austerity measures on single parent households. Furthermore, the Committee notes that, in response to its previous observation, the Government indicates that in the long term and with regard to the country’s competitive position it would be in the Government’s interest that wages are in line with productivity. The Committee invites the Government to continue providing information on the measures taken on employment generation and, in particular, to indicate how such measures are decided and kept under periodical review within the framework of a coordinated economic and social policy. The Committee also invites the Government to continue to report on the implementation of the Social Agreement and on other consultations held with the social partners involved in the formulation and implementation of active employment policies (Article 3).

Older workers. The Government indicates that it has implemented various measures to stimulate the labour market position of older people, including reforming the General Old-Age Pensions Act, supplementary pensions and limiting early retirement. The Committee notes that the employment rate of older workers has increased from 53.7 per cent in 2010 to 58.6 per cent in 2012 and that the average effective pension age has also gone up from 61 in 2006 to 63.6 in 2013. At the same time, unemployment among workers in the age group of 45–65 has increased. Employment mobility of this group is relatively low, which is partly caused by the strong employment protection that older workers may benefit from. The Government indicates that the fact that the severance pay in case of dismissal is higher for older workers than for younger workers forms an important part thereof. The Committee notes that lowering the severance pay is part of the reform on employment protection of the abovementioned Social Agreement. In the FNV’s view, the extra protection of older workers against dismissal is very necessary as opportunities for them to find new employment are very limited. The FNV stresses that the reduction of severance pay would have to be accompanied by means and measures to strengthen the position of older workers on the labour market. The FNV adds that personal coaching is essential for helping them find their way back to the labour market. The Committee invites the Government to continue to provide detailed information on the situation, level and trends of employment for older workers, and to indicate the effectiveness of the measures implemented to stimulate the labour market position and increase employment opportunities for these workers.

Youth employment. Despite its efforts to stimulate youth employment, the Government reports that unemployment figures for people below the age of 25 have increased from 4.6 per cent in 2011 to 9.5 per cent in 2012, primarily due to the economic crisis. The Government is investing in improvement of the transition from education to the labour market and in cooperation with regional employers. The Committee also notes that structural funding of €150 million has been made available for measures adopted in 2012 to reinforce efforts to reduce the drop-out rate at the secondary vocational education level. The Committee invites the Government to report on the effectiveness of the labour market measures implemented to meet the employment needs of young persons.

Ethnic minorities. The Government indicates that it pays attention to the labour position of migrants who face the negative effects of the crisis and that it is expected that migrant youth will benefit from the extra focus that it puts on education and employment of youngsters in general. The Committee invites the Government to provide in its next report more specific information on the employment situation of ethnic minorities as well as on the measures taken to improve their participation in the labour market.

Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the information provided in the Government’s report for the period ending in June 2010 and the comments submitted by the Confederation of Netherlands Industry and Employers (VNO–NCW), the Federation for small and medium-sized businesses (MKB–NL), and the Netherlands Trade Union Confederation (FNV). The Government indicates that the Dutch economy was hit relatively hard by the global financial crisis in September 2008, resulting in a historically large decline in economic growth of 4 per cent in 2009 and the effects of the negative economic developments can be observed in the labour market: unemployment rose from 3.9 per cent in 2008 to 4.9 per cent in 2009 and 5.4 per cent in 2010. The unemployment rate was measured at 5.1 per cent in June 2011 and 5.3 per cent in July 2011. Furthermore, Statistics Netherlands provides data indicating that the number of unemployed men in the age category 25–45 has more than doubled over the past three years: from 46,000 in the second quarter of 2008 to 99,000 in the second quarter of 2011. The Government indicates that before the crisis the main goal of employment policy was to increase the employment rate to solve problems caused by an ageing labour force and society, such as labour shortages and deficits in public finances. It further states that despite the economic crisis, the underlying structural challenges have not fundamentally changed; if anything, they have intensified. Increasing participation remains as important as before. The Committee notes the main crisis measures introduced to help employers deal with the impact of a sudden drop in demand: the Special scheme for the reduction in working hours (bijzondere WTV), and its successor, the Partial unemployment benefit (deeltijd WW). The Committee notes the comments submitted by the FNV indicating that the focus of the government policy is on higher participation. According to the FNV, both the Government and employers should pay more attention to the slowing growth in productivity. The FNV further states that, although the regulation concerning dismissal did not change, employment security declined due to the extension of the number of temporary contracts a company is allowed to offer an employee before the company is obliged to offer a permanent contract. This further increases the number of people with a flexible contract, the same group of workers that were already hit hard by the crisis. The FNV also points out the steadily declining share of labour in national income, which is seen as a clear indication that wage increases in the Netherlands have been moderate in comparison with economic growth. The Committee invites the Government to provide information in its next report on the impact of the measures taken on employment generation and in particular to indicate how such measures are decided and kept under periodical review within the framework of a coordinated economic and social policy. It also invites the Government to provide information on employment policy objectives with regard to productivity and the development of wages.

Older workers. The Committee notes that an important goal of the Government is to increase the employment rate and to improve the labour market position of older workers. It notes that the labour participation rate of persons aged between 55 and 64 rose from 50.9 per cent in 2007 to 53 per cent in 2008 and 55.1 per cent in 2009. The Government indicates that it used a variety of policy instruments to reach the goal of increased participation of older workers aimed at both the supply and demand side of the labour market. These include financial incentives for employers and changes to the statutory retirement age. The FNV states that the position of older workers has not improved in recent years and highlights the need for a better analysis of the labour market for this particular group of workers. The Committee invites the Government to provide information on the effectiveness of the various measures implemented to increase employment opportunities for older workers.

Youth employment. The Government indicates that a consequence of the crisis was to negatively impact, to a greater extent, employees with temporary or flexible contracts or self-employed persons. Groups that are relatively most often working in flexible jobs are young people and ethnic minorities. The Committee notes that the Government introduced the Investment in the Young Act with the aim of promoting sustainable participation by young people. The Act requires municipalities to provide an offer for work or learning to jobless young people up to the age of 27 who request social assistance. Furthermore, the Invalidity Insurance (Young Disabled Persons) Act (Wajong) was adopted in January 2010 in order to offer maximum support to young people who do not have prospects of work, helping them find and retain jobs. The FNV raises concern on the quality of the education, training or jobs available to all young workers targeted by these measures. The Committee asks the Government to report on the effectiveness of the various labour market measures implemented to meet the employment needs of young persons and to provide further information in light of the concerns raised by the FNV.

Ethnic minorities. The Government indicates that the relative labour market position of ethnic minorities is quite dependent on the economic situation. Before the crisis their employment rate was growing faster and the decrease of their unemployment rate was more substantial than for other groups. In 2009, the unemployment rate for ethnic minorities rose for the first time since 2005. The Committee notes that the Government chose to improve the underlying factors that cause the weaker position of ethnic minorities, such as lower educational attainment. They will benefit from general measures to prevent school leaving and improve the employability of workers. The Government also indicates that the labour market position of ethnic minorities will be improved by other measures taken, such as the Integration Delta Plan. The Committee invites the Government to continue to provide information on the employment situation of ethnic minorities as well as on measures taken to improve their participation in the labour market.

Article 3. Cooperation with social partners. The Committee notes that, although the crisis had a negative impact on the employment rate, the Government remains committed to the target agreed with the social partners of achieving an employment rate of 80 per cent in 2016. The Government indicates that a social summit was held on 24 March 2009 on how to combat the effects of the crisis on the labour market. The main topics were to prevent long-term unemployment, promote a responsible development of labour costs and improve the sustainability of public finances and the Dutch pension system. The Government revealed its plan to increase the statutory retirement age from 65 to 67 years and gave the social partners the opportunity to come up with an alternative plan. The FNV indicated that it strongly opposed the Government’s plans to raise the statutory age to 67 years. In this regard, employers and trade unions, after an initial failure to come to an agreement, have made a better and more robust plan to come to a sustainable retirement scheme. Part of this agreement is to improve the position of older workers in the labour market, as people will work until a later age in the decades to come. The Committee invites the Government to continue to report on consultations held with representatives of employers’ and workers’ organizations and representatives of other sectors of the economically active population involved in the formulation and implementation of active employment policies.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Implementation of an active employment policy. The Committee notes the information provided in the Government’s report for the period ending in June 2008, and the comments provided by the Trade Union Confederation of National Federation of Middle and Higher Level Employees’ Unions (MHP), the Netherlands Trade Union Confederation (FNV), and the Christian Trade Unions in the Netherlands (CNV) received in August 2008. The Government indicates that economic growth was robust over the period 2006–08, with GDP rising by 2.75 percentage points in 2006, 3 percentage points in 2007 and 2.25 percentage points in 2008. The Government indicates that the positive economic developments also translated into the labour market, with increasing labour shortages caused by rising vacancies with rapidly falling unemployment. Furthermore, due to labour market tightness, people previously disengaged from the labour market found their way into employment. The Government projects, however, that the financial turmoil is likely to disrupt the economic outlook from 2008 onwards. As of 2007, the total participation rate was 76 per cent. In view of the ageing society, the Cabinet committed itself to achieve a participation rate of 80 per cent in 2016, and intends to make a substantial step in that direction by 2011. In its comments, the MHP questions the link between the entry of severely disengaged persons into the labour market and labour productivity. In this regard, the MHP states that people who are severely disengaged from the labour market have yet to find employment, and that there was still a clear need in the Netherlands for ever greater innovation so as to encourage productivity. The FNV observes that there has been an increase in unemployment, and considers that structural unemployment in the lower segments of the labour market will persist, which will require specific measures to be taken in response. Furthermore, the FNV expresses its doubts as to whether the Government’s policies are compatible with the requirement that the policy ensures freedom of choice of employment and the fullest possible opportunity for each worker to qualify for, and to use his/her skills and endowments in, a job for which he or she is well suited. The Committee asks the Government to continue to provide information on the impact of the active labour market measures on the current employment situation and in particular to indicate how such measures are decided on and kept under periodical review within the framework of a coordinated economic and social policy. The Committee also invites the Government to provide its observations on the concerns raised in respect of the compatibility of the employment policy pursued with the requirements of the Convention.

Older workers. The Committee notes that the labour participation rate of persons aged between 55 and 64 rose to 50.9 per cent in 2007. The Government indicates that this increase in employment among older workers is an indication that policies aimed at extending working lives are effective. The Government has drawn up a “45 plus” action plan which is aimed at reducing unemployment among people aged 45 years and above. The Ministry of Social Affairs and Employment is supporting the implementation of the action plans by means of a national action team whose task it is to intensify cooperation between regional and local parties involved in the reintegration processes. The Centre for Work and Income is also deploying 300 advisers to provide services for people in this age group. As of February 2008, the goal of 30,000 additional placements was achieved, however efforts continue to be made to further reduce unemployment in this age group. Furthermore, the Government indicates that it set up a Steering Group (Grey Works) to provide a national communication programme in order to remove prejudices against older workers, to promote exchange of practical solutions among employers and employees and to reach agreements with and between social partners on stimulating employees to work longer. The Government also refers to the temporary subsidy scheme for employers and branches to encourage age-awareness policies by developing innovative human resources policies in order to improve sustainable employability of older workers, which will end in the middle of 2010. In its comments, the CNV expresses its belief that it should be made easier for people to be able to work after the legal age of retirement, i.e., 65. In this regard the CNV indicates that it promotes the removal of any “forbid” rules in the Collective Labour Agreements that make working after the age of 65 more difficult. The MHP has also expressed its concern on the implementation of the old-age insurance levy and its impact on stimulating older workers to work longer. The Committee asks the Government to continue to provide information on these and other measures implemented to retain older workers in the labour market.

Youth employment. The Government indicates that unemployment among young people has continued to fall in recent years, falling from 13.5 per cent in 2004 to 9.2 per cent in 2007. The rate of youth unemployment is still twice as high as the average unemployment level. The Government indicates that the Youth Unemployment Task Force reached its target of helping 40,000 young persons find jobs, and was accordingly disbanded in the spring of 2007. The Task Force advised the new Cabinet to sustain its efforts to reduce youth unemployment, and made recommendations for tackling the hard core unemployed youth at the local level, introducing national evaluation criteria for preparatory secondary vocational education and upper secondary vocational education. The Government indicates its intention to implement these recommendations. The Government also indicates that it has appointed a Minister for Youth and Family, in consideration that a comprehensive approach to youth and family policy is extremely important. On 28 June 2007, the Minister of Youth sent his programme “All opportunities for all children”, including policies relating to the transition from school to work, to Parliament for its consideration. In this regard, the CNV refers to the Government’s initiative, “Work-Learn Duty” for persons under 27 years of age, whereby persons of this age group either learn at school, or have jobs, or a combination of the two. The CNV indicates that it agrees with this proposal in so far as it means that municipalities have the duty to assist young persons with an offer of a relevant learning trajectory or a suitable job. The CNV states that this does not mean that pushing young persons as fast as possible into any job is always the right solution from the perspective of long-term participation in the labour market. The CNV also indicates that there should be scope for the introduction of exceptions to this initiative, for example young single parents. Furthermore, the CNV states that provision should be made for persons who have not been offered a job or learning trajectory to claim benefits. The MHP also indicates that the Government’s plans to require employers to allow their workers to obtain a national starting qualification if they do not already possess one offers a comprehensive way forward. The Committee asks the Government to continue to report on measures taken to meet the needs of young persons, and how these ensure that young persons have the fullest possibility to qualify for and to use their skills and endowments for jobs for which they are well suited.

Ethnic minorities. The Government indicates that, while the labour market position of ethnic minorities is less favourable than that of other nationals, there have been some positive developments. A broad-based programme is being developed to reduce language disadvantage and prevent early school leaving. The Social and Economic Council observed that the problem was not lack of a policy, but rather a need to improve the implementation of existing policy. The drive to combat early school leaving will continue and will be reinforced through cooperation between Government, parents, schools, businesses, social workers, youth services, municipalities, police and the Ministry of Defence. The Government also indicates that it supports the recommendation of the Social and Economic Council to develop a strategy aimed at raising awareness of prejudices and reinforcing positive perceptions across society. The Government is presenting its Integration Delta Plan aimed at improving the quality of integration so that more people will be able to complete the integration process at a higher level and participate economically, socially and culturally in society. In addition, the Government has subsidized several projects, many of which involved the close cooperation of social partners and the rest of civil society, aimed at improving the labour market position of ethnic minorities. The Government is requested to continue to provide information on the measures to promote the access by ethnic minorities to the labour market, including information on the steps taken to ensure better implementation of such measures.

Article 3 of the Convention. Cooperation with social partners. The Committee notes that the Government, social partners, provinces, municipalities, implementation offices, as well as individual employers and employees are jointly responsible for the functioning of the Dutch labour market and the Dutch employment policy. The Government further indicates that a Participation Summit was held in June 2007 where the Government consulted with the labour foundation (central employers’ and employees’ organizations) and with the Association of Dutch Municipalities. The Participation Summit resulted in a tripartite policy commitment by which all partners acknowledged the urgency, challenges and outcome of the analysis related to the labour market, and committed themselves to raising effective labour participation rate to 80 per cent, to increase the adaptability of the labour market and to create labour market opportunities for vulnerable groups. The Government is requested to continue to report on similar such initiatives to ensure that representatives of employers’ and workers’ organizations and representatives of other sectors of the economically active population are involved in the formulation and implementation of active employment policies.

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

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.

Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

1. The Committee notes the information contained in the Government’s report for the period ending in June 2004, as well as the National Action Plan for Employment 2003, attached. The Committee also notes the comments included in the Government’s report formulated by the National Federation of Christian Trade Unions (CNV) and the Trade Union Federation for Middle and Higher Level Employees (MHP). The comments of the Netherlands Trade Union Confederation (FNV) were received and transmitted to the Government in November-December 2004.

2. Implementation of an employment policy in the framework of a coordinated economic and social policy. The Government indicates in its report that the labour market trends reflect the economic slowdown of the years 2002-04. While the unemployment rate rose from 3.9 per cent in 2002 to 6.5 per cent in 2004, which translated into 238,000 more people being jobless, the employment rate for the whole population was still above 70 per cent, thus meeting the quantitative employment targets defined by the European Union. The Government aims to increase the employment rate, mainly by improving the effectiveness of various social security schemes (for instance, by revising some aspects of the unemployment benefit schemes), by taking measures to encourage labour force participation among certain groups (e.g. older workers), and by increasing the effectiveness of reintegration policy and giving people a financial incentive to move from claiming benefit to paid work. The Government also wants to curtail the steady growth in the number of work-disabled people, which means that a reform of the invalidity insurance system seems also inevitable. The Committee recalls that its General Survey of 2004 highlighted the procedures of policy coordination in the Netherlands (see General Survey of 2004 on promoting employment, box I.4). The Committee asks the Government to continue to report on how measures to promote full employment operate within a "framework of a coordinated economic and social policy" (Article 2, paragraph (a) of the Convention) and to indicate the difficulties encountered and the results obtained by its employment policy orientations. Further, concerning the reforms envisaged for the methods of providing unemployment benefit, the Committee recalls that the measures taken to promote productive employment should be taken in coordination with employment policy means (see General Survey, op. cit., paragraph 47). In this regard, the Committee would appreciate if the Government could clarify how the revision of the unemployment benefit schemes will contribute to promoting the re-entry into employment of the beneficiaries.

3. In its 2002 observation, the Committee had noted with interest that the Government had called for "investment-oriented collective labour agreements" to be negotiated with a view to establish a relationship between responsible pay increases, qualitative investments and flexible pay structures. The Government reports that in 2002, an average of 2.5 per cent pay increase for 2003 was agreed upon. An increase of 0 per cent was also agreed upon for 2004 and 2005. The Government indicates that reaching an agreement on early retirement and pre-pensioning systems has not yet been possible. The Committee would appreciate being kept informed on the efforts made by the Government and the social partners to promote employment and the measures taken with regard to income and wages.

4. Youth employment. Ethnic minorities. The Government further indicates that objectives have been set up concerning unemployment among young people. The Government’s target is that youth unemployment (aged 15-22 excluding school children and students) over the period 2003-07 should not be more than twice the total unemployment rate. A youth unemployment action plan has thus been put forward and the objective is that every unemployed young person should be in work and/or studying again within six months. The Government also states that another objective is to increase the employment rate among ethnic minorities from 50 per cent in 2002 to 54 per cent by 2005 and points out that equal opportunities and minorities policy will play an important role in achieving this target. The Committee looks forward to receive from the Government in its next report an assessment of the impact of these measures in achieving its objectives of increasing the labour force and reducing unemployment for young people and ethnic minorities.

5. Older workers. With regard to the participation rate of older workers, the Government indicates that it has set a target to increase labour market participation of older workers from 37 per cent to 40 per cent by 2007. Furthermore, the Government mentions the introduction, as of 1 May 2004, of the Equal Treatment of Older Workers Act, which bans age discrimination in hiring and selection of new personnel, promotion, dismissals, wages, secondary benefits, etc., unless there exists objective reasons for age limits. The Committee welcomes these measures and asks the Government to continue to supply information on the assessment and the outcome of these efforts to increase the participation rate of older workers.

6. Participation of the social partners in the formulation and application of policies. The Committee notes the comments formulated by the FNV to the effect that during the reporting period, on several occasions the FNV has presented to the Government alternatives that would have resulted in more effective labour market and employment policies, but the Government has not taken these alternatives seriously into account. According to the FNV, this was the case in particular when the Government introduced the early retirement and pre-pension measures. The FNV considers that unbalanced economic policies, ineffective labour market policies and intimidating social policies will increase tensions in society as a whole and negatively impact on relations between trade unions and employers’ organizations. The Committee recalls that Article 3 of the Convention provides that the measures to be taken in relation to employment policy should take fully into account the experience and views of the representatives of employers’ and workers’ organizations with a view to securing their full cooperation in formulating and implementing employment policies. Governments and representative organizations of employers and workers share responsibility for ensuring that representatives of the more vulnerable or marginalized sectors of the active population are associated as closely as possible with the formulation and implementation of measures of which they should be the prime beneficiaries (see General Survey, op. cit., paragraph 493). The Committee trusts that the Government will be able to provide indications in its next report on the manner in which it has actively sought the views of employers’ and workers’ representatives concerning all issues related to employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies.

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes the information contained in the Government’s report for the period 1 June 2000 to 1 June 2002 in reply to its previous direct request, and the appended reports.

1. Article 1 of the Convention. The Government states that it is continuing its efforts to reduce long-term unemployment and to increase the participation rates of targeted groups such as older workers and women. In line with these objectives, employment increased by 2.4 per cent in 2000, and was expected to rise by 1.75 per cent in 2001. Employment rates for men rose from 76.3 per cent in 1999 to 77.1 per cent in 2001; for women, they rose from 51.9 per cent to 53.4 per cent. The activity rate for women also rose, from 54.8 per cent in 1999 to 56.1 per cent in 2001. General unemployment decreased, from 4.1 per cent in 1999 to 3.4 per cent in 2001, with a particularly large decrease in unemployment for ethnic minorities from approximately 16 per cent in 1998 to about 10 per cent in 2000. Underemployment also dropped, from 200,000 in 1998 to 105,000 in 2000. Job losses were concentrated in non-construction manufacturing, transport and communications, while job growth was mainly in health care, social services and non-commercial services.

2. The Committee notes with interest that in response to the "decreasing competitive position in industry", the Minister of Labour and State Secretaries have called for "investment-oriented collective labour agreements", which establish a relationship between responsible pay increases, qualitative investments and flexible pay structures (Summary of the Social Memorandum, 2002, p. 3). It would appreciate being kept informed of the outcome of this effort.

3. The Committee notes that the participation rate of older workers remains low. However, the Government has drafted a Bill on equal treatment on grounds of age in employment, occupation and vocational training, and has established an Older Worker Taskforce to change perceptions of older workers. It would appreciate receiving further information on the outcome of these and other efforts to increase the participation rates of older workers.

4. Article 2. The Committee notes the detailed and informative evaluations of existing policies and programmes, in particular the "Dutch Experiences with the European Employment Strategy". Please continue to supply such information, in particular, any follow-up action taken in light of the findings of these and other evaluations.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report for the period 1 June 1998 to 1 June 2000, and the detailed National Action Plan for Employment 2000.

1. Articles 1 and 2 of the Convention. The documents attached to the Government’s report indicate that unemployment is at the lowest level since the start of the 1980s. The number of people in paid work has been increasing, the number of people on welfare has been decreasing and the dependency ratio is below the EU average. The number of vacancies is increasing, and there is a shortage of skilled labour in several sectors. Furthermore, the participation rate is up to about 70 per cent. The Government indicates that vacancy rates have increased, and wage pressure is increasing due to the tight labour market. However, the employment rate remains low, especially for older workers.

2. The Government explains that a Coalition Agreement exists to improve operation of the labour market, to reduce inflows into welfare, and to promote reintegration into mainstream work of benefit claimants. The WIW (Jobseekers Employment Act) employment contracts provide approximately 33,000 jobs plus 5,600 job experiences. The WIW is to be evaluated in 2000. The WVA (Act on reduction of wage tax and social contributions) is aimed at workers with wages up to 130 per cent of the minimum wage. In 1998, 839,000 workers qualified for the WVA programme, and the Government estimates that between 4,000 and 17,000 jobs have been created due to reduced wage taxes. The Government has also set up an "Additional jobs for long-term unemployed" programme, and adopted a "comprehensive approach" which aims to prevent long-term unemployment by guaranteeing to each new jobseeker an offer of either employment or training within 12 months.

3. Unemployment for ethnic minorities has decreased from 25 per cent in 1990 to 16 per cent in 1998. The Government has asked the Social and Economic Council to issue recommendations on labour market policy for ethnic minorities. Specific programmes to promote employment of ethnic minorities include language training and parenting support. The Dutch Association of Small and Medium-sized Enterprises signed an agreement with the employment services to hire 20,000 people from ethnic minority groups before May 2001.

4. The Committee notes these various efforts, aimed in particular at preventing long-term unemployment, and helping the long-term unemployed back into the mainstream labour market. It would appreciate continuing to receive information on the impact of these policies and programmes on employment promotion. The Committee would also appreciate receiving information on any measures taken to counteract discrimination against older jobseekers.

5. Article 3, in conjunction with Article 2. The Committee notes with interest the Government’s assessment of the contribution of the social partners contained in the National Action Plan for Employment, 2000, which concluded that:

There is therefore every reason to include employers’ associations and trade unions at national and European level in the preparatory policy-making phase. Henceforth, the government will not only consult the social partners when drafting the NAP and formulating its position on the draft employment guidelines (the Luxembourg process), it will also give the social partners the opportunity to put forward their views on relevant aspects of the Commission’s proposal for broad economic policy guidelines, and will inform them about the documents that serve as input in this respect. In this way, the Government hopes that policy coordination will take place within full view of the social partners. (p. 27)

The Committee would appreciate receiving further information on the progress made in including the social partners in deciding on, and keeping under review, within the framework of a coordinated economic and social policy, policies and programmes for promoting employment.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

1. The Committee notes the detailed information contained in the Government's report, as well as the ILO Country Employment Policy Review for the Netherlands, 1999. General unemployment has dropped to around 3.3 per cent as of April 1999, according to Eurostat, while long-term unemployment as a proportion of total unemployment has remained around 47 per cent as of 1998, according to the OECD, indicating a decline in the number of long-term unemployed. According to the Government, the Manpower Services has been reorganized, in accordance with the Jobseekers Employment Act (WIG) which came into force in January 1998, and will give priority to the "difficult to place" workers within the new structure. The Committee would appreciate receiving further details in the Government's next report on the success of the various programmes in tackling long-term unemployment. In particular, it requests further details on the effect of programmes targeted at the least skilled long-term unemployed.

2. The Committee notes the continued increase in part-time employment, and that around 65 per cent of part-time workers are female. According to the OECD Employment Outlook 1999, the trend towards an increase in part-time work appears to have levelled off with just over half (54 per cent) of all working women in part-time employment. The Committee would appreciate receiving more information on any research undertaken to ascertain whether structural impediments to full-time work exist, as requested in the report form under Article 1 of the Convention.

3. The Committee also notes from the Government's report and the OECD Employment Outlook that there is a clear upward trend in public expenditure on subsidized employment. According to the Government, there are two types of subsidized employment: employment contracts and regulation cleaning services. The employment contracts involve local communities hiring long-term unemployed persons or youth and seconding them to regular employment in either the collective or private sector. Employment contracts last for a maximum of two years, but may be extended indefinitely. Regulation cleaning services seeks to increase employment by expanding the private sector demand for cleaning services by offering wage subsidies to employers. The Committee would appreciate further information on the success rates of these programmes in transferring the long-term unemployed and youth to lasting employment.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

1. The Committee took note of the Government's report for the period ending June 1996. It notes that, according to the data published by the OECD, total employment increased more rapidly than the active population which itself advanced quickly during the period. The Committee notes that the decrease in the unemployment rate, from 7.6 per cent in 1994 to 6.7 per cent in 1996, took place in the context of a reduction in the different forms of "non-employment" which were noted in its previous observation. The Committee observes, however, that the persistent nature of certain characteristics hinder the progress of the Dutch labour market towards full employment. In particular, it notes that, according to the OECD, the number of persons without employment and receiving invalidity benefit or who have taken early retirement, appears to represent, in terms equivalent to full-time employment, more than 10 per cent of the potential active population. In addition, the growth in employment must be largely attributed to the increase in part-time employment which represents almost two-thirds of women's employment. It is not clear to what extent such a form of employment has been freely chosen by the women concerned. Finally, long-term unemployment, which above all affects the least skilled people, continues to represent almost half of total unemployment.

2. The Government explains that its employment policy is based on the structural reinforcement of the economy, the reduction of the tax burden and social contributions, wage restraint, the redistribution of work and the increased flexibility of regulations. It describes the measures implemented in order to reduce non-wage labour costs, in particular to promote the hiring of low-paid workers and the long-term unemployed. The Government also indicates that, in order to meet social needs which have not been satisfied, jobs designed for the long-term unemployed are created in the public sector. Measures to "activate" unemployment benefits, which allow the temporary conversion of such benefits into subsidies for the creation of new jobs, are the subject of current experiments. In addition, the new Working Hours Act encourages flexibility, so as to enable workers to combine more easily the performance of paid work with other responsibilities. In the civil service, the redistribution of work is encouraged by a reduction in working hours, the availability of part-time work and the replacement of workers on parental leave by disadvantaged persons on the labour market, such as women, immigrants, disabled persons or the long-term unemployed.

3. The Committee notes with interest this series of measures, some of which are innovative. It notes, however, that while promoting a return to work, these measures also help to encourage the growth of part-time employment which is already of considerable importance. The Committee invites the Government to specify the manner in which it envisages the implementation of such measures in relation to the objectives of the Convention and, in particular, to achieving an increase in living standards. The Committee would be grateful if the Government would describe the measures taken to ensure that part-time workers enjoy the same rights and have the same career prospects as full-time workers. In this regard, the Government may find it useful to refer to the provisions of the Part-Time Work Convention (No. 175) and the Part-Time Work Recommendation (No. 182), 1994. Finally, the Committee hopes that the Government will soon be able to report a significant reduction in long-term unemployment.

4. With reference to the requests it has been making in this regard for many years, the Committee hopes that the Government's next report will contain full particulars of the way in which the main trends in economic policy, in particular in the areas of monetary and budgetary policy, help to promote employment. The Committee would be grateful if the Government would also provide more detailed information on the consultations held concerning employment policies, in accordance with Article 3 of the Convention.

Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report for the period ending June 1994, which was characterized by a slowdown in economic activity and a rise in the unemployment rate, which increased from 6.8 per cent in 1992 to 7.5 per cent in 1994. Certain characteristics in the distribution of unemployment give cause for concern, such as the unemployment rate of women, which is nearly double that of men, the incidence of long-term unemployment and the particularly high rate of unemployment (nearly three times higher) among ethnic minorities. Furthermore, the proportion of employment accounted for by part-time work, particularly among women, is continuing to grow. The Government also emphasizes the continued decline in activity rates and the relatively unfavourable ratio between the active and the inactive population in the Netherlands and refers to the link between employment, the number of inactive persons and social security benefits. The Committee notes in this respect that, according to the OECD, the labour market is affected by various forms of underemployment or "non-employment". 2. The Government, which describes the labour market situation as alarming and without real prospects of improvement in the short term, states that it cannot resign itself to unemployment stabilizing at an ever higher level after each recession. It states that its employment policy has to attack the structural causes of unemployment and lead to growth which produces more employment in sectors which are not exposed to international competition, since an employment structure in which there is no place for the least productive workers is socially unacceptable. The principal aims of the policy concern the strengthening of investment in research and infrastructure, the reduction of wage costs through the adoption of a restrictive wages policy and the improved functioning of the labour market by means of greater flexibility in the field of low wages and deregulation measures, such as the abolition of the requirement for prior authorization for dismissals. The Committee also hopes to find in the Government's next report the information which it requested previously on the manner in which the measures adopted in the fields of monetary and budgetary policy contribute to the promotion of employment. 3. The Committee notes that the aims of the Government's policy described above were submitted to the social partners with a view to the adoption of a joint plan of campaign. It notes with interest the Government's analysis that the gravity of the employment and unemployment problem requires a collective approach. It would be grateful if the Government would provide information on the "constructive consultations" that the Government is calling for and the measures which are taken in practice in accordance with the requirements and the spirit of Article 3 of the Convention. 4. The Committee notes the multi-year policy framework of the Employment Service and the objectives that it sets for the year 1994-98 with regard to the placement in employment of particular categories of the population, such as women, young persons, members of ethnic minorities and persons with disabilities. It requests the Government to provide any available evaluation of the policy implemented for this purpose and to indicate the extent to which these objects have been achieved and have contributed to promoting those set out in Article 1, paragraph 2(c), of the Convention concerning freedom of choice of employment and the possibility for each worker to qualify for, and use their skills without any discrimination. The Committee also refers in this respect to its comments concerning the application of Convention No. 111.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the Government's report for the period ending June 1992. It notes from OECD data that the growth of employment, by 2.3 per cent in 1990 and by 1.3 per cent in 1991, has resulted in the continued reduction of the standardized unemployment rate, although at a slower pace than over previous years; this rate declined from 7.5 per cent in 1990 to 7 per cent in 1991 and 6.8 per cent in 1992. The Committee however notes that this trend has reversed since the end of the reporting period and that the unemployment rate has once again risen rapidly: according to OECD estimates, it is likely to reach 8.3 per cent in 1993. The Committee notes that long-term unemployment continues to account for around one-half of total unemployment. The Committee also notes the high rate of part-time work, particularly among women. 2. The Government's report concentrates on measures to promote employment among specific categories of the population, such as women, young persons, the members of ethnic minorities and workers with disabilities. It also describes the various measures which have been taken to subsidize the employment of the long-term unemployed. The Committee would be grateful if the Government would supply information in its next report on the results achieved by the various measures which it has described. The Committee also notes the new information concerning the reorganization of the employment services on a tripartite and decentralized basis and recalls that it requested the Government in its previous observation to state the extent to which the quantitative objectives set for the employment services for the placement in employment of categories of workers who are particularly affected by unemployment have been achieved. 3. With reference to its previous comments, the Committee regrets that the report does not contain the information called for by the report form on the principal measures adopted in such fields as investment policy; fiscal and monetary policies; trade policy; and prices, incomes and wages policies, with a view to promoting full, productive and freely chosen employment. It recalls in this respect that an "active" employment policy in the sense set out in the Convention is not confined to the adoption of measures to intervene on the labour market, but must also be pursued "as a major goal", "within the framework of a coordinated economic and social policy". The Committee hopes that the next report will contain the necessary information.

Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's report for the period ending June 1994, which was characterized by a slowdown in economic activity and a rise in the unemployment rate, which increased from 6.8 per cent in 1992 to 7.5 per cent in 1994. Certain characteristics in the distribution of unemployment give cause for concern, such as the unemployment rate of women, which is nearly double that of men, the incidence of long-term unemployment and the particularly high rate of unemployment (nearly three times higher) among ethnic minorities. Furthermore, the proportion of employment accounted for by part-time work, particularly among women, is continuing to grow. The Government also emphasizes the continued declined in activity rates and the relatively unfavourable ratio between the active and the inactive population in the Netherlands and refers to the link between employment, the number of inactive persons and social security benefits. The Committee notes in this respect that, according to the OECD, the labour market is affected by various forms of underemployment or "non-employment".

2. The Government, which describes the labour market situation as alarming and without real prospects of improvement in the short term, states that it cannot resign itself to unemployment stabilizing at an ever higher level after each recession. It states that its employment policy has to attack the structural causes of unemployment and lead to growth which produces more employment in sectors which are not exposed to international competition, since an employment structure in which there is no place for the least productive workers is socially unacceptable. The principal aims of the policy concern the strengthening of investment in research and infrastructure, the reduction of wage costs through the adoption of a restrictive wages policy and the improved functioning of the labour market by means of greater flexibility in the field of low wages and deregulation measures, such as the abolition of the requirement for prior authorization for dismissals. The Committee also hopes to find in the Government's next report the information which it requested previously on the manner in which the measures adopted in the fields of monetary and budgetary policy contribute to the promotion of employment.

3. The Committee notes that the aims of the Government's policy described above were submitted to the social partners with a view to the adoption of a joint plan of campaign. It notes with interest the Government's analysis that the gravity of the employment and unemployment problem requires a collective approach. It would be grateful if the Government would provide information on the "constructive consultations" that the Government is calling for and the measures which are taken in practice in accordance with the requirements and the spirit of Article 3 of the Convention.

4. The Committee notes the multi-year policy framework of the Employment Service and the objectives that it sets for the year 1994-98 with regard to the placement in employment of particular categories of the population, such as women, young persons, members of ethnic minorities and persons with disabilities. It requests the Government to provide any available evaluation of the policy implemented for this purpose and to indicate the extent to which these objects have been achieved and have contributed to promoting those set out in Article 1, paragraph 2(c), of the Convention concerning freedom of choice of employment and the possibility for each worker to qualify for, and use their skills without any discrimination. The Committee also refers in this respect to its comments concerning the application of Convention No. 111.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992. It notes from OECD data that the growth of employment, by 2.3 per cent in 1990 and by 1.3 per cent in 1991, has resulted in the continued reduction of the standardized unemployment rate, although at a slower pace than over previous years; this rate declined from 7.5 per cent in 1990 to 7 per cent in 1991 and 6.8 per cent in 1992. The Committee however notes that this trend has reversed since the end of the reporting period and that the unemployment rate has once again risen rapidly: according to OECD estimates, it is likely to reach 8.3 per cent in 1993. The Committee notes that long-term unemployment continues to account for around one-half of total unemployment. The Committee also notes the high rate of part-time work, particularly among women.

2. The Government's report concentrates on measures to promote employment among specific categories of the population, such as women, young persons, the members of ethnic minorities and workers with disabilities. It also describes the various measures which have been taken to subsidize the employment of the long-term unemployed. The Committee would be grateful if the Government would supply information in its next report on the results achieved by the various measures which it has described. The Committee also notes the new information concerning the reorganization of the employment services on a tripartite and decentralized basis and recalls that it requested the Government in its previous observation to state the extent to which the quantitative objectives set for the employment services for the placement in employment of categories of workers who are particularly affected by unemployment have been achieved.

3. With reference to its previous comments, the Committe regrets that the report does not contain the information called for by the report form on the principal measures adopted in such fields as investment policy; fiscal and monetary policies; trade policy; and prices, incomes and wages policies, with a view to promoting full, productive and freely chosen employment. It recalls in this respect that an "active" employment policy in the sense set out in the Convention is not confined to the adoption of measures to intervene on the labour market, but must also be pursued "as a major goal", "within the framework of a coordinated economic and social policy". The Committee hopes that the next report will contain the necessary information.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee has taken note of the Goverment's report for the period ending June 1990 and of the comments made by the Federation of Netherlands Industry (VNO). In addition, it has taken into account information given in OECD surveys, and notes that the increase in employment of 1.7 per cent in 1989 and 1.9 per cent in 1990 made it possible for the fall in the unemployment rate to continue, from 8.3 per cent in 1989 to 7.5 per cent in 1990 according to the OECD standardised rates. While the ratio of unemployment among young people (under 25 years of age) to total unemployment declined appreciably between 1989 and 1991 (from 27.5 to 22.5 per cent), the proportion of long-term unemployment (for a year or longer) remained high (54-55 per cent).

2. The Committee notes the information concerning the measures adopted during the period under consideration, which are aimed mainly at promoting the vocational reintegration of the long-term unemployed. The new Act to promote employment for the long-term unemployed, adopted in 1989, has instituted a subsidy scheme for the employment of long-term unemployed persons in regular jobs. Under this programme, employers are encouraged to take on long-term unemployed persons and to create new jobs for them, by the suspension of their social contributions and the payment of a guidance and training allowance. Furthermore the Government states that the Regional Employment Offices have undertaken, in collaboration with municipal social services, to extend to all long-term unemployed persons the practice of reorientation interviews as a means of promoting entry or re-entry into the labour market through a personal approach. The Government's report also contains information on measures designed to promote the employment of particular groups such as young people, members of ethnic minorities and the handicapped. In that connection the Committee has taken note with interest of the Government's first report on the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159). The Government also refers to the effects which voluntary early retirement has on employment. In its view, the increase in the rate of replacement of workers taking early retirement shows that voluntary early retirement schemes are making a significant contribution to the fight against unemployment. The Federation of Netherlands Industry states in its aforementioned comments that extensive use has been made of these measures in cases of collective dismissal.

3. The Committee notes the entry into force on 1 January 1991 of the new statute of the Netherlands Employment Organisation, the main features of which are tripartism and decentralisation. The Employment Service Organisation has become an autonomous public service headed by a Central Employment Promotion Board (CBA) which is composed of equal numbers of representatives of the Government, of employers' organisations and of workers' organisations. The Regional Employment Offices, which are similar in structure, are given broad discretion to determine their own regional policy. In this context, as it has mentioned elsewhere in its report, the Committee has taken note of the denunciation of Part II of Convention No. 96 concerning Fee-Charging Employment Agencies, 1949 and the simultaneous ratification and acceptance of Part III concerning the Regulation of Fee-Charging Employment Agencies. The Committee has further noted with interest the documents attached to the Governent's report concerning the main lines of labour market policy for the years 1991-95. According to the Government's forecasts, the evolution of the labour market during that period should be characterised by increasing divergence between supply and demand, owing in particular to the fall in demand for unskilled labour. Long-term unemployment, which mainly affects the least-skilled workers, will consequently remain a priority concern of the employment services. The quality of employment services will be improved by intensifying contacts with their employer and jobseeker users. Quantitative objectives are set for the employment services in terms of registration of offers of employment and the placement of workers in categories particularly affected by unemployment. The Committee has no doubt that the Government will supply, in its forthcoming reports information on the results achieved.

4. With reference to its previous comments, the Committee would be grateful if the Government would supply the information required by the report form on economic policy measures in such fields as investment policy; fiscal and monetary policies; trade policy; prices, incomes and wages policies, and on the procedure adopted to ensure that the effects of these measures on employment receive due consideration. The Committee further hopes that the next report will include detailed information on the volume and distribution of labour, the nature and extent of unemployment and underemployment, and trends in those matters.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee notes the Government's report for the period between June 1986 and June 1988. It also notes the statement by the Netherlands Council of Employers' Federations (RCO) expressing its agreement with the content of the Government's report. The Committee has also taken account of the information available to the Office or contained in the reports and periodical surveys of the OECD.

2. The Government has supplied substantial information and analyses on the labour market situation in relation to a number of questions raised in its 1987 observation. In overall terms, the following characteristics may be identified. Despite growth of employment (at the rate of 1.2 per cent in 1987 and 1 per cent in 1988), unemployment seems only to have declined slightly. The unemployment rate, which the Government described as a "relative concept", is difficult to estimate. According to the new methods of calculation introduced by the Government, it was 8.7 per cent in 1987 and 8.3 per cent in 1988. The standardised rates calculated by the OECD are 9.6 per cent and 9.5 per cent, respectively. According to the information supplied by the Government in its report, there has been a relative improvement in the situation of young persons, although their rate of unemployment remains high. As regards long-term unemployment, although it ceased to increase in 1987, more than 53 per cent of the unemployed had been without work for more than one year. Very long-term unemployment (over two years) has continued to increase, with the longer period of unemployment decreasing opportunities for occupational reintegration.

3. The Government's report also contains detailed information on the measures that have been taken or are envisaged to meet the employment needs of young persons and of underprivileged groups and persons. Specific measures for the employment of young persons, such as the extension at the national level of the JOB plan (the temporary scheme for municipal employment initiatives for young people) are intended to ease their access to the labour market through improved vocational training. For the first time, in 1987, the objective that had been set in agreement with the social partners in 1984, of doubling the number of young persons admitted to the apprenticeship training system, was attained. In consultation with the Joint Industrial Labour Foundation, an Act was adopted in 1986 to promote the employment of the very long-term unemployed, through exemption from social security contributions and the provision of a part of their training and guidance costs. Emphasising the increased unemployment of ethnic minorities between 1986 and 1987, the Government indicates that these workers, in the same way as other categories of disadvantaged workers such as women and the disabled, will benefit from positive measures to promote their access to employment in the public sector.

4. The Government's report supplies more information on the various measures taken in recent years to promote labour market flexibility, both as regards internal flexibility (reduction of working hours) and external flexibility (part-time work, temporary work, fixed-term contracts, etc.). The conclusions of a survey referred to in the Government's report illustrate that flexible forms of employment are concentrated in lower category jobs and are mainly occupied by women. The forecasts made in this survey of an increase in these forms of employment in 1986 and 1987 appear to have been contradicted more recently by other surveys. Part-time employment represents a relatively high proportion of total employment (between 25 and 30 per cent in 1987-88). The Government emphasises that flexible forms of employment have both advantages and disadvantages: a flexible contract may be a means of obtaining a permanent job (as was the case in 1985-86 for more than 55 per cent of temporary workers or workers with a flexible contract), although training measures may have a lower cost-benefit ratio. The Committee recalls that the Government also indicated that these forms of employment relationship often place the worker in a weak position as regards the protection of his or her rights concerning dismissal, working hours and social insurance. The Government puts forward the hypothesis that the economic recovery can explain the fact that in 1987 the growth in the number of flexible jobs ceased, although they had increased markedly during the first half of the 1980s. Finally, the Committee notes, from the Government's report on the Fee-Charging Employment Agencies Convention (Revised), 1949 (No. 96), that a Bill is due to be adopted in the near future to organise the employment service on a tripartite basis and to authorise and regulate private employment agencies. The Committee refers to its direct request on Convention No. 96 as regards the conformity of the plan with the obligations that have been accepted under that Convention.

5. The Committee appreciates the repeated efforts by the Government to establish a detailed and documented report describing and analysing labour market measures and policies under their various aspects. It hopes that the Government will continue to supply information on the development of the labour market and the impact of measures that are taken to improve it, and that it will pay particular attention to the problems referred to in the Committee's comments due to their acute nature: long-term unemployment, the unemployment of young persons and other disadvantaged categories on the labour market, the development of particular forms of employment, policies as regards training, vocational rehabilitation and retraining, and measures to co-ordinate education and training policies with employment prospects. Furthermore, the Committee would be grateful if the Government would supply the information called for in the report form on overall and sectoral development policies (including fiscal and monetary policies; prices, incomes and wages policies; investment policy and trade policy), and on the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration (Articles 1 and 2 of the Convention). Finally, the Committee would be grateful if the Government would supply information on the co-operation procedures with organisations of employers and workers that it proposes to introduce relating to the operation of the employment service and, more generally, on the manner in which representatives of these organisations and of other sectors of the economically active population are consulted concerning employment policies (Article 3).