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Challenges for the Dutch model

ESPN Flash Report 2017/40

FABIAN DEKKER – EUROPEAN SOCIAL POLICY NETWORK JUNE 2017

Description The stands for In the , shifts in the good reasons, in the first years, the consensus-oriented relationship between the social partners model was described as “A Dutch consultation can be observed. In 2013, employers’ Miracle”. between the social and employee organisations concluded In the past fifteen years, the Dutch partners. Mainly a social agreement, which, among other consultative model has come under due to the things, included an arrangement to reverse a previously agreed reduction of increasing pressure. Due to reduced increasing flexibility membership numbers, the position of of work and the the maximum duration of unemployment benefits (from 38 to 24 trade unions has dramatically trade unions’ months) and return to a maximum of 38 weakened. In 2015, only one in six declining level of months. Although employers’ employees was a member, organisation, this organisations signed this agreement at as opposed to one in approximately dialogue is losing the time, for a long time they tried to three employees in the 1970s (Keune impact. This is get out of implementing it. Another 2016). This has reduced the particularly visible element observed is the occurrence of organisational power of civil society. In in current debates strikes. While the level of conflict in the addition, support for agreement on unemployment Netherlands is relatively low in general, between the social partners has benefit duration the highest level of strikes in nine years decreased due to changes that have and a number of was recorded in 2015 (CBS 2016). In occurred in the labour . recent strike the last two months (May-June 2017), Meanwhile, 40% of the working announcements. strikes have been announced in all 13 population are self-employed without offices of Casino and the logistic personnel or flexible workers (CPB warehouses of DHL Express, Albert 2016). Flexible workers (often young) do not always fully identify with the Heijn and Jumbo in order to bargain for better collective agreements. interests and attitudes of traditional employee organisations, which are The Dutch polder model is traditionally generally organised around permanent characterised by an active and employment contracts. Moreover, over constructive dialogue between trade the past decades changes have unions and employers’ organisations. occurred in the management of social LEGAL NOTICE This social system dates from the period security. Whereas in the 1990s the This document has been after the oil crisis between 1979 and social partners played an important role prepared for the European 1982. In the “Wassenaar Agreement” of in the implementation of employee Commission. However, it 1982, the social partners agreed to reflects the views only of insurance schemes against the authors, and the moderate wages in exchange for unemployment risk, this role has now Commission cannot be held reduced working hours. The Dutch been completely taken over by the responsible for any use consultative model paid off and resulted Employee Insurance Agency (UWV). which may be made of the information contained in more social peace, improved This has also helped to reduce the therein. international competitiveness and a legitimacy of the polder model. renewed increase in employment. For

Although various agreements are Vakbond), as they are perceived as still being concluded between the more flexible in collective Further reading social partners in the Netherlands, bargaining. These examples show Afonso, A. (2017), “Challenges for there are strong differences of that the Dutch polder model is no the Dutch polder model: opinion between employers and longer functioning optimally and Performance, populism and employee representatives, for that it is becoming increasingly political economy”, Beleid en instance with regard to: restoring difficult to reach widely supported Maatschappij, 44(1): 70-75. the maximum duration of social compromises. Centraal Bureau voor de Statistiek unemployment benefits to 38 [CBS/Statistics Netherlands] months, organising the Outlook & (2016), “In 2015 hoogste aantal flexibilisation of work, concluding commentary stakingen in negen jaar” (2015: collective bargaining agreements, The highest level of strikes in nine and negotiating a new social The continuity of the Dutch years): consultative model is under agreement between employers https://www.cbs.nl/nl- pressure (Afonso 2017). Over the and employees. So, the polder nl/nieuws/2016/17/in-2015- past decades, the role of the social model is far from functioning hoogste-aantal-stakingen-in- smoothly. Whereas Dutch partners in the social security negen-jaar employers’ organisations currently system has declined, and trade Centraal Planbureau strongly advocate further unions are less representative of an increasingly flexible work force. (CPB/Netherlands Bureau for relaxation of the rules governing Economic Policy Analysis) (2016), Partially as a result of this, dismissal, trade unions strongly “Lusten en lasten ongelijk employers are choosing to oppose oppose this and threaten action. verdeeld.” (Unequal distribution of previous agreements regarding the Furthermore, whereas in the social advantages and disadvantages) agreement of 2013, agreement maximum duration of Den Haag: CPB. was reached to restore the unemployment benefits and trying Keune, M. (ed.) (2016), “Nog maximum duration of to conclude collective bargaining agreements without the steeds een mirakel?” (Still a unemployment benefits to 38 miracle?), : Amsterdam participation of the largest union. months (as opposed to the University Press. proposed maximum duration of 24 The latter are responding by An English summary of the 2015 months as of 2019), it turned out announcing strikes in order to Social and Economic Council of the that employers’ organisations regain influence over business decisions. The question is how this Netherlands advice can be found opposed this extension for a long here: time. Although employers will impact on the future of social eventually agreed to extend the dialogue and the functioning of the https://www.eurofound.europa.eu/ duration of receipt of labour market. A report by the observatories/eurwork/articles/lab unemployment benefit, it seems Social and Economic Council of the our-market-law-and- regulation/netherlands-social-and- that the Dutch polder model is Netherlands, published in 2015, economic-council-proposes- losing some of its effectiveness. advocated a larger role for employee organisations in regional changes-to-unemployment- Employers more often conclude financing collective agreements without the advice centres set up to help participation of the largest Dutch workers made redundant find More information on the recent trade unions (FNV and CNV). work. This would enable the social strike activities in the Netherlands can be found here: Instead, they conclude agreements partners to regain a small part of with smaller unions (such as De their influence in the area of work http://www.logistiek.nl/carriere- Unie and Alternatief voor de and income. mensen/nieuws/2017/4/fnv-dreigt- ook-met-acties-bij-dhl-101154867

Authors Fabian Dekker (Regioplan)

The Flash Reports are produced by the European Social Policy Network (ESPN) established in 2014 to provide the European Commission with independent information, analysis and expertise on social policies in 35 European countries. The topics covered are identified by ESPN experts in the light of significant developments in their countries, or in some cases suggested by the Commission or the Flash Reports’ editorial team (Eric Marlier, Slavina Spasova and Bart Vanhercke). The ESPN is managed by LISER (Luxembourg Institute of Socio-Economic Research), APPLICA and the OSE (European Social Observatory). More information on the ESPN: http://ec.europa.eu/social/main.jsp?catId=1135&langId=en.