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In 2000, the Netherlands' Christian Trade Union Federation (CNV) is undergoing a major reorganisation in the face of financial problems. At the same time, CNV plans to change the relationship between itself, its affiliated unions and the members, and to change "outdated" aspects of its organisation and operations. The larger Dutch Trade Union Federation (FNV) and its affiliated unions have already been through a period of cost-cutting and are now achieving above-average financial results, based on successful investments.
The Christian Trade Union Federation (Christelijk Nationaal Vakverbond, CNV), the Netherlands second-largest trade union confederation, is currently in the throes of a drastic reorganisation. Within the coming two-year period, 26 of CNV's existing 154 full-time officials will have to go and its annual NLG 18 million budget must be cut by nearly NLG 2.5 million. CNV's income is declining as a consequence of several changes: the Military Police Association (Marechausseevereniging) has left the federation (NL9910168N); some internal payments between the unions and the federation has been discontinued; and the effects of the privatisation of employment offices, in which trade unions are involved, are becoming visible. CNV has already begun to concentrate its employees at its head office and the offices of its affiliated unions it represents, and the positions of 40 employees in regional offices have vanished.
In addition to financial issues, CNV's reorganisation also addresses substantive changes in the relationship between the trade union federation, the affiliated unions and the members. CNV is relinquishing its traditional structure as an association, in that the members no longer have a direct relationship with the federation concerning policy, but the unions take policy decisions on behalf of their members. The unions will consequently cooperate more closely in terms of central consultation and sectoral representation is strengthened. The traditional structure of voluntary participation in activities by members will be dropped; interest has dwindled when it comes to attending numerous meetings, which fail to provide the federation with an adequate supply of new points of view. It seems that members are more interested in matters concerning training and education, and this is an area in which CNV has invested in the past few years. In line with this development, a decision has been taken to stop organising national conferences on various topics; communication will instead take place using information and communications technology, for example through on-line discussions. In the future, CNV intends to limit its focus to the key topics of work and income.
The Dutch Trade Union Federation (Federatie Nederlandse Vakbeweging, FNV), the Netherlands' largest union confederation, has also recently undergone cost-cutting and reorganisation, put now appears to have put its financial problems behind it (NL9910168N). FNV has been pursuing an investment policy over recent years involving low-risk stocks. As a result, the FNV's capital reserve amounted to NLG 851 million in 1996. Over the past two years, the federation's investments have also included more risky components. Its shares in companies such as Philips, Shell, Unilever and General Electric have generated good returns: in 1999, an above-average yield of 52% was achieved. The invested capital currently owned by FNV and its affiliated unions totals NLG 1.7 billion, representing an increase of close to 25% over only one year. The largest member union is also the largest investor: Allied Unions (FNV Bondgenoten), with 500,000 members, accounts for NLG 762 million of the FNV investment fund.