The average wage increased by 3.9 percent in June. Over the first six months, the increase amounts to 4.1 percent. This is due to the labor shortage to retain staff and the wage demands of the unions at the collective bargaining tables.
In total, 25 collective labor agreements were concluded last month for 270,000 employees. Wages rose the fastest in the catering, healthcare, construction and agriculture sectors, according to preliminary figures from employers’ association AWVN.
Wages have already risen sharply in recent years due to the soaring inflation in our country. The peak was in 2022, partly due to rising energy prices. The peak was in September and October of that year, when inflation was over 14 percent. After that, prices slowly began to rise less rapidly.
As a result, many employees saw their purchasing power decline. Reason for the unions to make high wage demands at the collective bargaining tables. That was successful. Wages increased significantly at various companies and sectors.
Yet the FNV is not satisfied. The union still demands an increase of 7 percent at the collective bargaining tables. The union believes that most employees have not been sufficiently compensated for the soaring inflation and that they have suffered a significant decline in purchasing power in recent years.
‘Wage demand of 7 percent not arbitrary’
“This shows that employers are not yet willing to pay employees their fair share. Our wage demand of 7 percent is not arbitrary. We need about 4 percent wage increase to make up for the inflation of the past period,” said labor conditions coordinator Petra Bolster last month.
“We think it is high time that people move forward after three years of abstaining, and that requires more than 4.1 percent. That is also possible, because enough money is still being earned in most sectors and government finances are in good shape.”
Prices in June were 3.1 percent higher compared to a year earlier. In particular, the prices of services and food, drink and tobacco rose, according to figures from statistics agency CBS. Yet wages remain at a high level.
According to employers’ association AWVN, this is harmful to the Dutch economy. “We will have to look at what the wage margin is per company and sector. Things are still bad in certain parts of the industry. It is currently particularly important to invest in earning capacity and productivity,” says a spokesperson.
Economists at RaboResearch expect wages to rise by an average of 5 percent this year. “And next year we expect an increase of 4.1 percent. The labor shortage plays an important role, giving the unions a strong position at the collective bargaining tables. And that while the loss in purchasing power has been made up for in recent years,” says economist Hugo Erken.