Dutch unions achieve their pay-rise target

After several years of wage moderation, pay rises this year in the Netherlands are outstripping inflation and meeting the 3.0% goal that the FNV, the country's main union confederation, set last November.

The brewer Grolsch has agreed to increase pay by 4.5% in three stages over 18 months from January 2007, a 6.0% pay increase in four instalments over two years has been negotiated at drinks giant Coca-Cola, and the agriculture industry has also reached a phased settlement delivering 6.0% over two years.

At a slightly lower level, a 15-month agreement from 1 January 2007 in the fruit wholesaling industry will increase pay by 3.5% increase in two stages - 2.75% in July and 0.75% next January.

Overall the FNV estimates that the average increase in the 30 agreements signed up to the middle of February was 2.8%. Inflation in the Netherlands is currently 1.5% (February).