labour relations in the netherlands: on flexibility and human capital investments frank cörvers...
TRANSCRIPT
![Page 1: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/1.jpg)
Labour Relations in the Netherlands: On Flexibility and Human Capital Investments
Frank Cörvers
Session 4Resilient Labor Markets: Cases of Germany and the Netherlands
![Page 2: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/2.jpg)
2 Labor Relations in the Netherlands Sept. 26, 2011
Overview
1. Some characteristics of the Netherlands2. Typical Dutch3. A resilient labour market?: Analysing the
decrease in unemployment 4. Flexible contracts and trade-off with firm-
specific human capital investments5. Take-away points for other countries
![Page 3: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/3.jpg)
3 Labor Relations in the Netherlands Sept. 26, 2011
Most recent figures for the Netherlands (from the World Bank)• Population 16.6 million• Life expectancy at birth 81 years• GNP per capita $ 50k• Exports of GDP 69%• Labor force with tertiary education 29%• Labor participation rate (15+) 66%• Part time work among women 60% • Unemployment 3.4%• Youth unemployment 6.6%
![Page 4: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/4.jpg)
4 Labor Relations in the Netherlands Sept. 26, 2011
Typical Dutch
• Corporatist system: central level bargaining with moderate unions at the industry level (-> wage moderation, agreements on working conditions and training, pension contributions, etc.)
• Collective labour agreements (CLA’s) concluded at the industry level are binding for all firms
• Employers can freely choose from dual dismissal tracks: They can either go to the employment office or file for permission by the civil court.
• Relative high protection for permanents workers, low protection for flexible workers
![Page 5: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/5.jpg)
5 Labor Relations in the Netherlands Sept. 26, 2011
GDP growth 1970-2010; forecast 2011-2012
-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
%
GDP growth
![Page 6: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/6.jpg)
6 Labor Relations in the Netherlands Sept. 26, 2011
Unemployment shows a structural downward trend since the middle of the 1980s
-4,0
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
%
GDP growth unemployment
![Page 7: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/7.jpg)
7 Labor Relations in the Netherlands Sept. 26, 2011
Why unemployment went down since the middle of the 1980s?• Agreement of Wassenaar (1982) between
government, employment associations and labour unions: wage moderation for shorter working weeks; government promised not to intervene in wage negotiations
• Cuts in government spending and social security without much opposition of labour unions; decrease in taxes and social security contributions -> lower wage costs
• Stricter eligibility criteria for social security benefits (disability), more financial responsibility for municipalities (welfare)
![Page 8: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/8.jpg)
8 Labor Relations in the Netherlands Sept. 26, 2011
Recent moderate increase in unemployment was a surprise• Official forecasts in 2009: unemployment
would rise to about 7% (doubling) or more...• In fact we are still a bit puzzled why it
didn’t….
![Page 9: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/9.jpg)
9 Labor Relations in the Netherlands Sept. 26, 2011
Possible reasons for moderate increase in unemployment, despite large fall in GDP• Very short period of negative growth• Many vacancies before turndown• Anticipation on new labour market shortages after
crisis: employers were reluctant to fire highly- qualified personnel
• Many retirees and less young people than before• Short-time working (in Germany: Kurzarbeit), both
officially and voluntary (without wage compensation)• Higher % of flexible workers, incl. self-employed,
than before • (SAB: more discouraged workers and young people in
education, less immigrants, ALMP
![Page 10: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/10.jpg)
10 Labor Relations in the Netherlands Sept. 26, 2011
Five contract types in the Dutch labour force• Permanent contracts• Fixed-term contracts (direct hire temporary)• Temporary work agency contracts • On-call contracts• Self-employment without personnel
![Page 11: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/11.jpg)
11 Labor Relations in the Netherlands Sept. 26, 2011
Shares on the labour market
![Page 12: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/12.jpg)
12 Labor Relations in the Netherlands Sept. 26, 2011
Regulation since 1999: Flexibility and Security Act • With implications for fixed-term contracts,
temporary agency contracts and on-call work• F&S Act was prepared by social partners and made
into law.• Aim: increase flexibility for firms and security for
workers.• More flexibility in ftc, less in on-call work• More security in twa and on-call• Deviations are always possible by collective labour
agreements
![Page 13: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/13.jpg)
13 Labor Relations in the Netherlands Sept. 26, 2011
Temporary employment as % of dependent employment
![Page 14: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/14.jpg)
14 Labor Relations in the Netherlands Sept. 26, 2011
Self-employment as % of total employment
![Page 15: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/15.jpg)
15 Labor Relations in the Netherlands Sept. 26, 2011
Warning: Trade-off between flexibility and firm-specific training
![Page 16: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/16.jpg)
16 Labor Relations in the Netherlands Sept. 26, 2011
Wage penalties on temporary contracts
![Page 17: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/17.jpg)
17 Labor Relations in the Netherlands Sept. 26, 2011
The flip side of flexibility• Some specific groups mainly bear the costs of
labour market flexibility: low-skilled & young people incl. recent graduates (‘dual labour market’ problem)
• Those groups are faced with job insecurity, repeated spells of unemployment, wage penalties, worse job match, poor working conditions and less training investments
• Differences in protection between permanent and temporary workers are rather large in the Netherlands
![Page 18: Labour Relations in the Netherlands: On Flexibility and Human Capital Investments Frank Cörvers Session 4 Resilient Labor Markets: Cases of Germany and](https://reader030.vdocuments.us/reader030/viewer/2022020417/56649e9e5503460f94b9f86c/html5/thumbnails/18.jpg)
18 Labor Relations in the Netherlands Sept. 26, 2011
Take-away points for other countries
• Corporatist system of labour relations may offer good elements for other countries
• More labour market flexibility may decrease unemployment
• But comes at the cost of poor working conditions and job match for those workers
• Relatively small group of flexible workers is hit in the Netherlands, which may be prevented by closing the gap of employment protection between permanent and temporary contracts