Current situation Collective Labour Agreement (CAO) for Dutch Universities

December 2011

On 21 November, the Association of Universities in the Netherlands (VSNU) and the joint employee representative organisations decided to postpone their CAO consultations for several months. In the negotiations the employers’ organisation aim for a slight pay increase and economising on non-statutory redundancy pay. The employees’ organisations are not unwilling towards such economising, but is ill-disposed to deviating from the guarantee agreement whereby employees can only be dismissed when they have definitively found another job. The universities are very willing to increase their efforts in coaching staff to a new job, but cannot guarantee success in every individual case.

The current CAO schemes will remain in force for the moment, until the parties have decided on the next stage. In the meantime, the employees’ organisations are consulting with their members.

High performance, limited means

This month, the universities and the State Secretary of Education, Culture and Science (OCW) put their signature on the Outline Agreement. The core of this agreement is that universities set university-wide high standards and develop a clear profile to ensure more recognition with regard to their qualities. They formulate challenges for themselves to deliver top performances without extra means, for which they can be held accountable financially. In 2012 the individual universities will conclude concrete performance agreements about this with the Secretary of State.

Attractive employer status

This is the picture of Dutch universities in the near future: attractive employers for scientists and support staff; for younger and older employees. Personal development and career progress feature high on the agenda. In line with this, the universities wish to make every effort to offer their support when an employee switches to another job, if his or her position is in danger. A long-term benefit after the unemployment benefit (WW) period does not fit in with the attractive employer status advocated by universities.

Pay increase and premium increase

The universities have presented a proposal for a new CAO that runs until 31 December 2012. This comprises a modest pay increase.

At the same time, there is a realistic risk that at the beginning of 2012 employers and employees will face further increases in pension premiums in 2012. This is caused by the possibly substantial financial measures needed to realise a recovery of the own pension fund ABP. If this occurs, financially there will be a whole new situation.

More austere social schemes

Below, you will find a summary of the economising of social schemes as advocated by the universities. Basically, it boils down to a shorter redundancy pay period and a more austere scheme for senior staff.

At this moment employees from the age of 59 years may opt to work 4 days per week whilst retaining their pay, but against the loss of a number of days leave. Because this scheme dates from a time that employees retired earlier, it stands to reason to repeal this scheme, or at least to adjust it considerably.

At this moment, employees who become unemployed receive a small supplement to their unemployment (WW) benefit in the first year of unemployment, and in many cases also a benefit when the WW expires. An employee who has been employed for more than five years, from the age of 41 years receives an extra 6 months’ benefit and via a graduated scale, from an extra 6 months per year this runs up to 4.5 years of extra benefit for a staff member aged 49 years or older. Employees aged 52 or older who have been employed for more than 12 years, receive a benefit until their retirement, in total in the cases mentioned a period of redundancy pay of a maximum of 13 years. The universities have proposed to repeal the supplement to the WW in the first year, and to considerably austere the non-statutory redundancy pay period after WW.

Instead of the non-statutory long-term redundancy pay in the event of unemployment, the employers wish to strengthen the coaching of employees who are in danger of losing their job, both for those with a temporary employment contract and for those with permanent employment. In the proposal of the employer, the following ingredients will be a mandatory element of the coaching: As soon as the redundancy is known, or four months before expiry of a temporary contract of one year or more, the employee will be presented with a job coach, will be offered training if necessary, and will, at least partly, be exempted from regular duties. For people with a temporary contract, the coaching will be continued during six months after dismissal; for those with permanent employment, this will be 12 months.

It is the ambition of the universities to arrive at a CAO that suits the challenges they face. Despite tight budgets, in the Outline Agreement they have agreed to deliver an improved performance in order to guarantee their international positions. Much will be required from the staff in this context; major commitment, a willingness to develop and to adopt an open attitude to change. Universities want to be known as dynamic centres, offering an exciting environment for students and staff alike. They offer challenges to their staff in exchange for their commitment and input. With this attitude, the Dutch universities and their staff work together on their way to becoming world-class institutes.