Unions and temporary agencies agree over consequences of new Act

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In early 1999, trade unions and the ABU temporary employers' organisation reached a collective agreement on the consequences of the Flexibility and Security Act, which took effect on 1 January 1999. An agreement dealing with the Act's consequences was also reached in the primary education sector, following intervention by parliament and the ministers concerned.

One of the provisions of the the Flexibility and Security Act, which took effect on 1 January 1999, is that employers are required, under certain circumstances, to recruit employees on an open-ended basis after three temporary contracts (NL9901117F). In an attempt to avoid repercussions ensuing from the new Act, temporary employment agencies reportedly summarily dismissed thousands of temporary employees at the end of 1998, or presented them with new temporary contracts, expressly forbidding any appeal under the terms of the new Act.

Subsequently, the three trade unions involved and the largest temporary agency employers' organisation, Algemene Bond van Uitzendorganisaties (ABU), reached a collective agreement addressing the consequences of the new Act. The unions eventually succeeded in obtaining redress for the agencies' conduct, and even managed to score a victory for employees who had been forced to accept new terms at the end of 1998. The employees affected will now either be granted an open-ended contract or receive compensation worth between two and four months' pay. One of the unions involved, FNV Bondgenoten, announced that it was satisfied with the outcome and that the Flexibility and Security Act had proved to be more sound than some employees may have believed at the end of 1998.

Temporary employment agencies, without the cooperation of ABU, sent an urgent letter to the Lower House of parliament about the implications of the new Act. However, the Lower House was more concerned with the consequences of the Act for the primary education sector, where schools were no longer providing substitutes for teachers off sick, fearing the permanent employment obligation following three temporary contracts. The catalyst for immediate parliamentary action came when teacher shortages led to schools sending pupils home. The Lower House sprang into action and called for emergency consultations during which calls were made to amend the Act. The Ministers of Education and of Social Affairs then called for employers and unions in the education sector to amend their collective agreement accordingly.

Following a subsequent two-month deadlock in collective bargaining, the bargaining parties in the education sector managed to reach a compromise in mid-February. The "perpetual clause" - permanent employment following three consecutive contracts - will not apply to the education sector, but employers have promised to assist temporary staff with finding permanent employment.