Philips staff get up to 10% in 18-month deal

Around 11,000 workers at the electronics company Philips in the Netherlands, will see their pay increase by 10% by June 2024 in a deal signed on 10 May.

The settlement runs for 18 months, from 1 January 2023 to 1 July 2024. For lower paid workers it provides for a 7% increase from 1 August 2023, with a minimum increase of €250 a month. Higher paid staff get a 4% increase from the same date, again with a €250 a month floor. On 1 June 2024, pay rates for both higher and lower paid staff will go up by 3%.

To cover the seven-month period without an increase, from 1 January to 31 July 2023, all employees will get a one-off payment of €1,750 (seven times €250) in May.

For lower paid employees, the 2023 increase is above inflation in the Netherlands, which in April was 5.2%.

As well as higher pay, the deal also improves the arrangements for early retirement, tripling the number of employees who can benefit. The settlement follows the threat of industrial action, which was planned to start on 10 May but called off at the last minute.