Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Employment Policy Convention, 1964 (No. 122) - Netherlands (Ratification: 1967)

Other comments on C122

Observation

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Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes the Government’s report received in August 2013 containing information in connection with its previous comments and notes the observations made by the Netherlands Trade Union Confederation (FNV). The Government indicates that even though the Dutch economy is in recession for the third time since the outbreak of the financial and economic crisis in 2008, mainly as a result of low spending, the Netherlands remains a prosperous country with solid foundations. In 2012, a simultaneous decline in demand for labour and growth of the labour force resulted in a rise in unemployment to 5.3 per cent. The Government indicates that weak economic growth will slow demand for labour in the private sector in 2013. In addition, as a result of shrinking production, unemployment is expected to rise to 6.25 per cent in 2013. The Government stresses that even though it will be the highest unemployment rate since 1996, in European terms it remains relatively low. The Committee notes that in April 2013 the Government entered into a new Social Agreement with representatives of employers and workers in which they all agreed on the way and the pace in which important labour market reforms are to be implemented. Important measures include the reform of the unemployment benefit insurance, on the employment protection legislation, on security of flexi-workers and the implementation of the Participation Act wherein employers commit themselves to the creation of jobs for workers with disabilities. Moreover, the Government aims to simplify and introduce savings to child-related schemes. While the FNV has no objection to the simplification of these schemes, it highlights the negative impact of austerity measures on single parent households. Furthermore, the Committee notes that, in response to its previous observation, the Government indicates that in the long term and with regard to the country’s competitive position it would be in the Government’s interest that wages are in line with productivity. The Committee invites the Government to continue providing information on the measures taken on employment generation and, in particular, to indicate how such measures are decided and kept under periodical review within the framework of a coordinated economic and social policy. The Committee also invites the Government to continue to report on the implementation of the Social Agreement and on other consultations held with the social partners involved in the formulation and implementation of active employment policies (Article 3).

Older workers. The Government indicates that it has implemented various measures to stimulate the labour market position of older people, including reforming the General Old-Age Pensions Act, supplementary pensions and limiting early retirement. The Committee notes that the employment rate of older workers has increased from 53.7 per cent in 2010 to 58.6 per cent in 2012 and that the average effective pension age has also gone up from 61 in 2006 to 63.6 in 2013. At the same time, unemployment among workers in the age group of 45–65 has increased. Employment mobility of this group is relatively low, which is partly caused by the strong employment protection that older workers may benefit from. The Government indicates that the fact that the severance pay in case of dismissal is higher for older workers than for younger workers forms an important part thereof. The Committee notes that lowering the severance pay is part of the reform on employment protection of the abovementioned Social Agreement. In the FNV’s view, the extra protection of older workers against dismissal is very necessary as opportunities for them to find new employment are very limited. The FNV stresses that the reduction of severance pay would have to be accompanied by means and measures to strengthen the position of older workers on the labour market. The FNV adds that personal coaching is essential for helping them find their way back to the labour market. The Committee invites the Government to continue to provide detailed information on the situation, level and trends of employment for older workers, and to indicate the effectiveness of the measures implemented to stimulate the labour market position and increase employment opportunities for these workers.

Youth employment. Despite its efforts to stimulate youth employment, the Government reports that unemployment figures for people below the age of 25 have increased from 4.6 per cent in 2011 to 9.5 per cent in 2012, primarily due to the economic crisis. The Government is investing in improvement of the transition from education to the labour market and in cooperation with regional employers. The Committee also notes that structural funding of €150 million has been made available for measures adopted in 2012 to reinforce efforts to reduce the drop-out rate at the secondary vocational education level. The Committee invites the Government to report on the effectiveness of the labour market measures implemented to meet the employment needs of young persons.

Ethnic minorities. The Government indicates that it pays attention to the labour position of migrants who face the negative effects of the crisis and that it is expected that migrant youth will benefit from the extra focus that it puts on education and employment of youngsters in general. The Committee invites the Government to provide in its next report more specific information on the employment situation of ethnic minorities as well as on the measures taken to improve their participation in the labour market.