Talks on two-year deal start in Belgium


Unions and employers in Belgium have started negotiations on a new two-year deal, which, in theory at least, will set a pay increase applying across the whole private sector for the two years 2017 and 2018. 


The first meeting of the so-called “group of ten” took place on 18 November. However, in practice, the negotiators may have little to discuss. Under legislation on competitiveness, which goes back to 1996, pay increases are limited to the forecast level of increases in Belgium’s three neighbours, Germany France and the Netherlands. 


The government is tightening these provisions, ensuring that if the forecasts are too generous for one two-year period, the overshoot will be recovered in the next. It is also imposing a fine of up to €5,000 per employee on companies paying increases above the agreed level. 


With price inflation again covered by automatic pay increases, after a period when the government interrupted this automatic indexation system, there is little room for negotiation. 


In any case, serious discussions are unlikely to begin until an expert report setting out expected pay increases in Belgium’s neighbours has been delivered, probably next month or possibly in the new year.


If the two sides fail to agree, the government can impose a pay norm.


• €1 = 86p on 18 November 2016