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Employers want to overhaul collective labor agreements: 'Invest now, more wage room later'

Employers want to overhaul collective labor agreements: 'Invest now, more wage room later'

Dutch employer organizations are calling for a change in collective labor agreement negotiations by prioritizing productivity-boosting investments over automatic wage increases linked to inflation. They argue that focusing on training and AI-related skill development is essential to maintain competitiveness and ensure long-term economic prosperity in the Netherlands.

Dutch employer organizations, including AWVN, VNO-NCW, and MKB-Nederland, are calling for a fundamental shift in collective labor agreement negotiations. They argue that the focus should move away from automatic wage indexation linked to inflation and toward investments that boost productivity. With competition rising from abroad and labor costs increasing, employers warn that focusing solely on immediate salary hikes could threaten the long-term competitiveness of companies in the Netherlands. By prioritizing investments in training and skill development, particularly in response to the rapid integration of artificial intelligence in sectors like consulting and call centers, employers believe they can foster growth.

According to Lisette van Breugel of the AWVN, productivity gains resulting from these investments could eventually lead to higher wages or profit-sharing for employees. Unions, however, remain focused on ensuring financial progress for workers, with groups like the CNV pushing for significant wage increases in upcoming negotiations. Employers hope that prioritizing productivity will prevent the labor market from becoming a zero-sum game, ultimately securing jobs and prosperity for the future.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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