Dutch pay rises reach a 20-year low

The second quarter of 2005 saw the lowest level of pay increases reached in the Netherlands under collective agreements since 1984.

Official figures from the Dutch national statistics office show that the average pay rise is now 0.6%, well below inflation over the second quarter of the year (1.5%).

In 2004, pay settlements showed an average increase of 1.3%, just above the 1.2% average level of inflation for the year.

Against this background, Dutch unions have urged the government to increase purchasing power in the economy.