The Dutch trade union federation (FNV) announced on Tuesday, 19 April, that it would start afresh with negotiations on pension reforms following a two week breather in order to deal with internal disagreements.

The break, taken out to assess the situation within the union's own rank and file, lasted until Monday. FNV chair, Agnes Jongerius, said that the federation would now once again take its position at the negotiation table.

It was feared that the union would announce another two week halt due to ongoing internal disagreements on how to handle the demands of Government and employers. Though the negotiations will continue the unions have said that they will not stop communicating in order to form one front.

"Some decisions and thoughts need more time than others, this is what we will be working on parallel to the negotiations with employers and the Minister," said Jongerius.

The Netherlands is in the process of determining renewed regulations for its Pensions Act.

Pension reforms should have been agreed in February, these were then postponed until the beginning of April. They are now expected to be finalised in May.

The main stumbling block for the unions is the risk apportionment. Traditionally employers carry most of the risk but in the new agreement, set up by Government last June, the burden shifts from employer to employee.

Two weeks ago union leaders already demanded that the federation took a break from negotiations to discuss with all involved. "We are heading for a contribution system in which all the risks will be for the employees and the pensioners," they said.

"We are prepared to make some adjustments with regards to increased contributions due to the higher life expectancies but when it comes to all other risks the employers and employees should carry these together."

Another reform that has been announced by the Minister of Social Affairs, Henk Kamp, is the increase of the retirement age to 66 for both the state pension and the second tier pensions in 2020.

The Minister also said that the new bill would decrease the tax-deductibility of pension contributions from 2013.

One of the unions linked to FNV, FNV Bondgenoten, started a petition and raised 35,000 signatures amongst its members. The petition was handed over to the federation in order to support their case for equal risk apportionment during the renewed negotiations.

azeevalkink@wilmington.co.uk

First published 20.04.11