Nursing-home staff share in Netherlands pay boom

Around 225,000 employees of nursing and care homes in the Netherlands have negotiated an pay rise worth 2.0% this year - almost twice the Dutch rate of inflation, which stood at 1.1% in September.

The 12-month agreement, which was agreed this month but is backdated to run from 1 January 2006 to 1 January 2007, gives employees a 1.5% increase in pay rates plus a lump sum worth 0.5% of salary at the end of the year.

The 0.5% is a one-off payment, but from January 2007 the employers will pay an equivalent amount on an ongoing basis into employee savings; these can be used to pay for longer periods of leave over employees' working lives, and are often used for early retirement.

Pim van Loon from the Abvakabo public services union, part of the FNV confederation, said the agreement was "in line with wage developments this year", but added: "More importantly, it means a real increase in purchasing power for employees in nursing and care homes."

The latest figures from the Netherlands' Central Bureau of Statistics, covering the third quarter of 2006, show negotiated pay rates increasing at an annual rate of 1.6%. If special payments are included, the rate of pay growth rises to 2.1%.