Dutch reach building deal

Employers in the Dutch construction industry have agreed a new pay deal with the industry's union, following a threat of industrial action.

The agreement, which runs until 31 March 2007, provides for a 3.75% rise paid in four stages, plus four one-off payments totalling €800.

The first stage, to be paid in July this year, is 1.25% - in line with the overall union demand for a 1.25% pay increase across the economy in 2005. Inflation in the Netherlands is currently 1.5% (April).

The union has also been able to maintain and in some cases improve its position in other areas, including early retirement (employees can still leave at 60 if they have worked for 40 years), sick pay and the ability to spread leave across the whole of a worker's working life.

The agreement was reached despite the employers initially indicating that they did not want an agreement at sectoral level. As in other sectors (see last month's Workplace Report), it has taken union action or the threat of action to reach an acceptable agreement.