Wage negotiations – “Reliance on compliance with agreements” – Belgium

Through statements in almost all Flemish media, Forott Chairman Koner Russo announced on Wednesday evening that the Socialists would not accept a limited wage increase of 0.4 per cent at the top of the index in the private sector. It links this to Article 14 of the Payroll Act 1996, which means in concrete terms that no dividend can be paid to the shareholders. “I don’t understand this to the treasurer that if there are profits that belong to the shareholders, they cannot go to a higher remuneration.” PS Minister of Labor and Economy, Pierre Yves Derman, echoed this message shortly afterwards on Twitter. A tweet from Egbert Lachaert, president of the Open Partner Alliance, responded, “If there is no margin for a serious Corona bonus and there is no discussion about the minimum wage, then there is also no margin for profits and wages of the CEO.” Vld. The latter responded briefly through a spokeswoman for the party on Wednesday evening. “We depend on the agreements that have been committed. They are clear in their essence.” Lashart stated earlier in the day that the Basic Cabinet has an agreement to effectively set the maximum wage margin at 0.4 percent if the social partners cannot reach an agreement, but the Socialists see it differently. It is no secret that wage negotiations are a potential contentious issue between socialists and liberals. Minister Derman and Prime Minister Alexander de Crowe have already tried to defuse the file by making room for a one-time Corona installment in sectors that are doing well despite the Corona crisis, but the unions announced at the beginning of this week that the consultations had failed. Derman himself confirmed in the House of Representatives on Tuesday that he is still trying to bring unions and employers to the negotiating table. It seemed then, “but it is a weak hope.” The minister had previously given the social partners until May 1 to reach an agreement. For several months, trade unions and employers have negotiated wages and working conditions in the private sector. Those consultations were very difficult from the start, because the Central Business Council saw a margin of only 0.4 percent in additional fees over the projected indicator of 2.8 percent, which is “charity” according to the unions. Then employers scrutinize the consequences of the Coronavirus pandemic and demand a sense of reality. The limited scope of wage increase is a result of the Wages Act 1996, which stipulates that wages in our country may not rise faster than those in neighboring countries. (Belga)

Through statements in almost all Flemish media, Forott Chairman Koner Russo announced on Wednesday evening that the Socialists would not accept a limited wage increase of 0.4 per cent at the top of the index in the private sector. It links this to Article 14 of the Payroll Act 1996, which means in concrete terms that no dividend can be paid to the shareholders. “I don’t understand this to the treasurer that if there are profits that belong to the shareholders, they cannot go to a higher remuneration.” PS Minister of Labor and Economy, Pierre Yves Derman, echoed this message shortly afterwards on Twitter. A tweet from Egbert Lachaert, president of the Open Partner Alliance, responded, “If there is no margin for a serious Corona bonus and there is no discussion about the minimum wage, then there will also be no margin for profits and wages of the CEO.” Vld. The latter responded briefly through a spokeswoman for the party on Wednesday evening. “We depend on the agreements that have been committed. They are clear in their essence.” Lashart stated earlier in the day that the Basic Cabinet has an agreement to effectively set the maximum wage margin at 0.4 percent if the social partners cannot reach an agreement, but the Socialists see it differently. It is no secret that wage negotiations are a potential contentious issue between socialists and liberals. Minister Derman and Prime Minister Alexander de Crowe have already tried to defuse the file by making room for a one-time Corona installment in sectors that are doing well despite the Corona crisis, but the unions announced at the beginning of this week that the consultations had failed. Derman himself confirmed in the House of Representatives on Tuesday that he is still trying to bring unions and employers to the negotiating table. It appeared at the time, “but little hope.” The minister had previously given the social partners until May 1 to reach an agreement. For several months, trade unions and employers have negotiated wages and working conditions in the private sector. Those consultations were very difficult from the start, because the Central Business Council saw a margin of only 0.4 percent on the projected headline of 2.8 percent, which is “charity” according to the unions. Then employers scrutinize the consequences of the Coronavirus pandemic and demand a sense of reality. The limited scope of wage increase is a result of the Wages Act 1996, which stipulates that wages in our country may not rise faster than those in neighboring countries. (Belga)