The FNV trade union demands a minimum wage increase of 6 percent for all collective agreements and sectors. But how feasible is that? FNV mentioned the increase itself solid and employers find the requirement “not wise”. Experts are also critical.
“It seems like a hefty requirement,” says Bastiaan Starink, special appointment professor of Labor Market, Pensions and Tax. Although the shortage on the labor market is still great, according to him there is room for a wage increase. At the same time, employers have many uncertainties, so they do not want to increase their fixed wage costs. “Consider, for example, the impact of technology and the unrest in the world.”
Is a requirement of 6 percent real? “Compared to inflation at the moment it surprises me,” says Starink. “At the same time I understand that they bet high and see where they come out.”
That can be seen in last year’s figures. Then FNV focused on a wage increase of 7 percent. On average, wages then ‘only’ rose by 4.1 percent.
“It’s just a bit part of the game,” says Starink. “I think employers find 7 percent too high, because they are often unable to calculate this. We also have to keep an eye on our competitive position.”
Wage requirement not feasible for each sector
CAO expert Henk Strating is clear about the requirement of FNV. “It seems impossible to me,” he says. In the Netherlands, according to him, we have the tradition not to use extremely high, but real. As a union you can therefore expect a realistic offer back.
“Now you don’t have that,” says Strating. “There is now a larger gap, making it more difficult to enter into a collective agreement negotiation.”
According to the CAO expert, FNV has secured itself by the high wage requirements in recent years. “Now they can’t come up with a much lower bid.”
The FNV sets the wage requirement for all collective agreements and sectors, but not every industry is the same. For example, the agricultural sector is different from care and well -being. “I am not in favor of the same percentage for every sector,” says Rabobank economist Leontine Treur. “For example, it depends on whether the sector operates internationally and how strong the competitive position of the sector is.”
The rise in minimum wage is substantial according to professor
In addition to the wage requirement, FNV also wants the minimum wage to rise, from 14.40 euros to 18 euros per hour. That is an increase of around 25 percent. GroenLinks-PvdA also wants a higher minimum wage in its election program. Is that feasible? “The biggest problem with the minimum wage is that you also have to increase wages above it by about the same percentage,” says Strating.
According to Treur, it is not feasible to suddenly introduce that increase, because an employer must be able to prepare for this. In addition, not every employer is the same here either. “For an industry that depends on people with a minimum wage, such an increase of 25 percent is substantial,” says Professor Starink.
Some industries lean heavily on students and students who deserve the minimum wage. Think of a supermarket or a restaurant. If the minimum wage becomes higher, this group of employees runs the risk that they will be hired less quickly, Strating explains.
In recent years, the minimum wage has already been increased step by step, says Treur. “That has not led to higher unemployment in the tight labor market.”
The FNV Trade Union is Demanding A Minimum Wage Increase of 6 percent For All Collective Labor Agreements and Sectors. But how feasible is that? FNV ITSEFT Called the Increase Substantial, and Employers Find the Demand “Unwise.” Experts are also critical.
“It seems like a substantial demand to me,” Says Bastiaan Starink, Professor of Labor Market, Pensions, and Taxation. Althegh the Labor Market Shortage is still significant, he believes there is room for a wage increase. At the same time, employers have many uncertainties, so they do not want to get their fixed labor costs. “Think, For Example, of the Impact of Technology and the Unrest in the World.”
Is a demand or 6 percent realistic? “Compared to the inflation at the moment, it surprises me,” Says Starink. “At the same time, I understand that they are aiming high and seeing where they end up.”
That is reflected in the figures from last year. At that time, FNV Aimed for a Wage increase or 7 percent. On Average, Wages Then Increased by ‘Only’ 4.1 percent.
“It’s just part of the game,” Says Starink. “I think employers find 7 percent Too high because they are ofs unable to pass this on. We must also keep an eye on our competitive position.”
Wage demand not feasible for every sector
Collective Labor Agreement Expert Henk Strating is Clear About FNV’s Demand. “It seems impossible to me,” he says. In The Netherlands, HE Says, We do not have the tradition of aiming extremely high, but realistically. As a Trade Union, You Can also Expect A Realistic Offer Back.
“Now you don’t have that,” Says Strating. “A Larger Gap is now created, making it more difficult to enter into collective Labor Agreement negotiations.”
Accordance to the Collective Labor Agreement Expert, FNV Has Trapped Itself with the High Wage Demands in Recent Years. “Now they can’t come up with a much lower sacrifice.”
The FNV Sets The Wage Demand for All Collective Labor Agreements and Sectors, but not every sector is the same. For Example, The Agricultural Sector is different from Healthcare and Welfare. “I am not in favor of the same percentage for every sector,” Says Economist Leontine Treur or Rabobank. “It Depends, For Example, On Whether the Sector Operates International and How Strong The Sector’s Competitive Position is.”
Increase in minimum wage is substantial accordance to professor
In Addition to the Wage Demand, FNV also Wants the Minimum Wage to Rise from 14.40 euros to 18 euros per hour. That is an increase of about 25 percent. GroenLinks-Pvda also Wants a Higher minimum Wage in its Election Program. Is that feasible? “The biggest problem with the minimum wage is that you also have to increase the wages above that by about the same percentage,” Says Strating.
Accordance to Treur, it is not feasible to introduction that increase Suddenly because an employer must be able to prepare for it. In Addition, Not Every Employer, the Same Here is Either. “For a sector that deeping on people with the minimum wage, such an increase of 25 percent is substantial,” Says Professor Starink.
Some sectors rely heavy on pupils and students who earn the minimum wage. Think of a supermarket or a restaurant. If the minimum wage incentes, this group of employees runs the risk of being hired less quickly, strating explains.
In recent years, the minimum Wage Has Already Been Increased Step by Step, Says Treur. “In The Tight Labor Market, that has not led to higher unempleoyent.”