Belgian pay talks head for deadlock

Negotiations for pay in Belgium over the next two years were reaching a climax as Workplace Report went to press, but with little sign of agreement between the two sides.

Under Belgian law, the government can intervene in negotiations to ensure that pay does not rise faster than in France, Germany and the Netherlands. As a result, the total pay increase for 2005 and 2006 cannot exceed 5.3% - but this figure includes higher payments linked to length of service and to Belgium's automatic inflation-linked rises.

Arguing that past increases should be taken into account, the employers are calling for pay to be frozen for the next two years, other than the inflation-linked rises. The unions have rejected this.

The employers also seek more flexibility in working time, but the unions want this to be negotiated sector by sector, so that they can bargain for something in return.

If the negotiations do not produce a settlement, one will be imposed by the government.