Download article in original language : BE0502302FFR.DOC
In January 2005, after long and difficult negotiations, the Belgian social partners managed to reach a draft intersectoral agreement covering 2005 and 2006, which included a 4.5% norm for pay increases over the two years. However, members of the Belgian General Federation of Labour (FGTB/ABVV) - one of the three signatory trade union confederations - rejected the deal in a ballot. The federal government has decided to apply the original draft agreement in its entirety.
In autumn 2004, employers' organisations and trade unions began negotiations (BE0412301N) over a new intersectoral agreement to succeed the two-year accord for 2003-4 (BE0302302F), and on 18 January 2005 they signed a draft agreement for 2005-6, covering 2.5 million workers in the private sector. From the outset, issues relating to wages (the 'pay norm') and flexibility (overtime) were stumbling-blocks that caused major problems. A breakdown had appeared imminent on several occasions. As early as summer 2004, the Federation of Belgian Enterprises (Fédération des Entreprises de Belgique/Verbond van Belgische Ondernemingen, FEB/VBO) had infuriated the trade unions by demanding a return to the 40-hour working week (BE0408301N). In December 2004, when the intersectoral talks were in full flow, the trade unions jointly organised a demonstration that brought 50,000 workers onto the streets of Brussels. The aim was to put pressure on the employers’ organisations by demonstrating the unions’ mobilising strength. The employers’ representatives were unimpressed.
In the end, the federal government’s intervention in the negotiations via measures designed to support the demands of both sides made it possible for a draft agreement between the employers’ and workers’ representatives to be signed. The amount of money put on the table by the government came to more than EUR 250 million, compared with EUR 70 million when the 2003-4 intersectoral agreement was concluded.
Content
The most important points of the intersectoral agreement are as follows:
- the indicative 'pay norm' to guide wage negotiations in individual sectors and enterprises is set at 4.5% over 2005-6 (including indexation payments, increases in pay scales and real wage increases). The agreement states that 'the social partners call on sectors and on all employers and employed workers to negotiate a moderate pay rise in solidarity with employed workers whose jobs are threatened and with job-seekers';
- the social partners strongly urge the government, sectors and those involved in science to maintain and increase investment in innovation and in research and development;
- the social partners 'again confirm the training agreements concluded at the October 2003 conference for employment' (BE0312305F);
- with regard to work organisation, it will be possible, as a result of an amendment to the law of 16 March 1971, to double the annual limit of 65 hours’ overtime work in the event of 'an exceptional increase in workload or of work required to meet unexpected needs'. With regard to the first 65 hours of overtime, workers may choose between compensation in time off or being paid for them. As far as the additional 65 hours are concerned, the arrangements may be set out in detail in a sectoral collective agreement, or such an agreement may simply establish a framework to be implemented by enterprises. Alternatively, the sectoral social partners may refer negotiations to enterprise level, where the arrangements must be laid down by a collective agreement signed by all employees’ representatives in the company. To make these flexibility options attractive both to workers and to employers, the government is offering EUR 80 million to alleviate equitably taxation on such overtime working;
- two sectoral joint committees that have hitherto been inoperative as a result of employers not filling their seats will commence functioning from 1 March 2005, thus bringing these sectors back into the framework of dialogue and consultation. These are joint committees no. 100 (covering mainly enterprises in the field of outsourced technical maintenance) and no. 200 (activities such as call centres);
- on low pay, 'the social partners ask the government, in consultation with them, to allocate EUR 40 million earmarked for workers under the intersectoral agreement for a voluntary increase in the lowest wages, and to provide the corresponding funding for social security'. These measures are designed to encourage employment and avoid 'employment traps' (whereby unemployed people are discouraged from finding work because of the small difference between benefits and minimum pay);
- the system of compensation payments for workers who become redundant because of their employers' closure/bankruptcy (BE0311303T) will be extended to smaller firms - those with between 10 and 20 employees from March 2005 and those with between five and 10 employees from 2006. The government, and not the companies themselves, will meet the EUR 7 million cost;
- the social partners note the government’s wish to set aside EUR 5 million in order to encourage access to employment for people with disabilities;
- the social partners have decided to extend by two years the current employers’ contribution of 0.10% of paybill for employment measures for 'at-risk' groups, and of 0.05% to fund accompaniment plans; and
- the system of early retirement at 56 for night workers and construction workers has been retained.
Reactions to the deal
When the talks were over, the trade union and employers' negotiators said that they were relatively pleased that they had been able to reach an agreement. Trade unions did not achieve any major advances, but were satisfied that they had managed to temper the employers' considerable fervour for change and ensure trade union control over the arrangements for using the new overtime limits. Furthermore, low wages have been increased and alternative funding for social security provided to offset this change.
On the employers’ side, FEB/VBO was delighted with the agreement's increased flexibility in overtime, the reduction in social contributions and the wage moderation, although it said that the pay norm was still to high. The Union of Independents (Unie van Zelfstandige Ondernemers, UNIZO) referred to 'a historic breakthrough [ie extended working hours through overtime] and to the lowest [pay] norm ever established under the terms of a social agreement'. The Union of the Middle Classes (Union des Classes Moyennes, UCM) was pleased that an agreement had been reached, and stressed that more favourable rules on overtime had been a key demand of the small and medium-sized enterprises it represents. It considered the 4.5% pay norm to be reasonable, as it should enable Belgian companies to reduce some of the 'pay handicap' they suffer in relation to neighbouring countries (Germany, France and the Netherlands).
FGTB/ABVV members reject agreement
The draft intersectoral agreement was put to the signatory organisations’ members for their approval. It was approved by employers, despite some unhappiness expressed by a number of members of FEB/VBO. On the trade union side, members of the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) backed the agreement with 74.8% in favour, as did the Federation of Liberal Trade Unions of Belgium (Centrale Générale des Syndicats Libéraux de Belgique/Algemene Centrale der Liberale Vakbonden van België, CGSLB/ACLVB), with 67% support.
However, 52% of members of the Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond, FGTB/ABVV) rejected the draft that their representatives had negotiated. Their fiercest criticism focused on: the doubled amount of overtime (which is seen as constituting an obstacle to recruitment); the pay norm, which members felt was insufficient; and perceived 'employers’ arrogance and contempt for workers'. The draft agreement was rejected by the white-collar workers' federations affiliated to both CSC/ACV and FGTB/ABVV, the largest trade union confederations.
Government takes control
Following FGTB/ABVV’s rejection, the employers’ representatives refused to renegotiate the agreement. Moreover, CSC/ACV decided not to sign the agreement without FGTB/ABVV. In this context, the agreement could be jettisoned, leaving it to the federal government to impose a decision, even though its only legal obligation involves fixing the pay norm. In practice, and following a request from CSC/ACV and the employers, the federal government will apply the whole of the agreement as it was set out when the negotiations came to a conclusion. The liberal-socialist coalition government is under fire from both its left wing and its right wing, and apparently does not dare to disturb the draft agreement’s delicate balance.
Commentary
This is the first time in Belgian industrial relations history that a draft intersectoral agreement has been rejected. FGTB/ABVV's rejection could marginalise it in the future, but it is very likely that the joint trade union front will remain united in the tripartite forums (involving unions, employers and government) that will address the delicate issues of the future of pensions and of social security in spring 2005.
One of the dangers created by the absence of an intersectoral agreement will be the 'regionalisation' of industrial relations, and therefore a weakening of solidarity between workers in the north of the country and those in the south. Indeed, FGTB/ABVV’s rejection of the agreement came mainly from its Walloon wing, and this suggests to some Flemish-speaking people that it might be more appropriate to organise collective bargaining along community lines. There would then be no longer any reason for the existence of national social dialogue and consultation. Even if this scenario does not come about in the short term, the current political relationship in Belgium between the two language communities is fertile soil for this kind of development. (Alexandre Chaidron, labour science Institut, Catholic University of Leuven (Louvain-la-Neuve))