Dutch reach nursery agreement

Unions and employers have reached agreement for the 40,000 employees employed in nurseries in the Netherlands.

The agreement, which runs for a year from January 2005, provides for a 0.75% increase in April plus a lump-sum payment of 1.0%, although this depends on the financial position of each individual nursery. Employers will also pay the bulk of any increases in medical costs.

The unions see this as a good agreement, as the employers initially wanted a pay freeze. Inflation in the Netherlands is currently 1.2% (December 2004).