Dutch unions plan major action over early retirement

Unions in the Netherlands are preparing for a series of strikes and demonstrations against government policy in the autumn, in a break with their traditional search for consensus.

The move follows the collapse of talks earlier in the year on arrangements for early retirement.

The financing of early retirement had already emerged as a major issue in 2003 when the centre-right government proposed to cut tax relief on early retirement contributions as part of a package of budget savings.

Negotiations with the unions and employers led to the government withdrawing its proposals in favour of joint discussions on an alternative.

In return the unions agreed in October 2003 to accept a pay freeze for 2004 and very limited rises in 2005.

Those joint discussions have now broken down as the government and the employers were insisting on financing arrangements which, in the view of the unions, would have made most early retirement schemes financially non-viable.

The government has returned to its original proposal and will gradually remove tax relief from early retirement provisions.

The unions' memberships have backed their position overwhelmingly, with 97% of the members of the largest union confederation, the FNV, in support.

The union has already said that it no longer feels bound by the effective pay freeze for 2005 and it has started to negotiate pay increases.

FNV president Lodewijk de Waal said the plan is "gradually to build up the pressure", as the alternative is "to let the unions be pushed into the sidelines".