Netherlands
Key Facts
| Population | 16,575,000 |
|---|---|
| Collective Bargaining Coverage | 85% |
| Proportion of Employees in Unions | 22% |
| Principal Level of Collective Bargaining |
industry |
| Workplace Representation |
works council |
| Board-level Representation |
yes: state-owned and private companies |
| Company Board Structure |
dualistic |
Trade Union
Just over a fifth of employees (22%) are union members in the Netherlands, and the proportion has been gradually falling in recent years. There are two main confederations, the FNV – the larger of the two – and the CNV, initially divided on ideological/confessional lines, although now with good relations. A third grouping, the MHP, represents more senior staff.
more ...Collective Bargaining
The vast majority of employees in the Netherlands are covered by collective bargaining, mostly at industry level. However, many large companies negotiate their own deals. Negotiators generally follow the recommendations agreed at national level and recent pay increases have been moderate.
more ...Workplace Representation
Employee representation at the workplace is essentially through works councils elected by all employees. They should be set up in all workplaces with at least 50 employees and more than three-quarters of workplaces of this size have them. (There are other arrangements for smaller workplaces.) Works councils are not directly union bodies, although union members often play a key role.
more ...Board-level Representation
Works councils have the right to nominate up to one third of the members of supervisory boards in larger companies – above 100 employees among other things. However, neither employees of the companies nor trade unionists dealing with them can be nominated, so the works council nominees are often distant from employees’ day-to-day concerns.
more ...European-level Representation
It is the works councils who choose employee representatives from the Netherlands on bodies related to European Works Councils and European Companies, with a clear hierarchy running from the central works council to individual works councils.
more ...Health and Safety
Since June 2005, undertakings with more than 15 employees have been required to have safety reps. From 31 January 2006, this duty was imposed for undertakings with more than 25 workers.
more ...Financial Participation
The system of employee financial participation in the Netherlands is primarily based on a national “save-as-you-earn” scheme offering attractive tax incentives for both employers and employees when employee shares are purchased. However, the majority of employees prefer low-risk savings into a special account, even if taxation is not as favourable. A recent increase in the take-up of participation schemes directed at all employees of a company can be traced back to a 1999 change in legislation. Employee financial participation schemes are offered especially by bigger companies employing more than 200 workers.1
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