Labor Unions

I created this blog to encourage you to join a labor union. In the 19th century, workers in the Netherlands formed the first labor unions to defend their common interests. This was a bitter necessity at the time.

The emergence

Labor unions have been established (partly) at the time of the Industrial Revolution (1750-1830). Mass labor emerged in factories and workshops. Workers were forced to work inhumanly long hours. The great contradictions in society grew and material need among workers increased. With unemployment, illness and old age, people were at great risk. I remember my mother telling me that her grandfather committed suicide when he became unemployed. He was desperate because there was no money and solution available. Sickness and unemployment funds were then created to take care of the worst needs. Benefits did not exist then.

National labor unions

In the late 19th century, national unions were formed but many of the work employers (e.g. in the port, in railroads) refused to recognize the unions and banned their workers from becoming members. Strikes then led to this ban being lifted. After World War I (1914-1918), the eight-hour working day (six days a week) was introduced for industrial companies. Male and female suffrage (1922) gave workers a voice. The number of (prolonged) strikes increased and the awareness of the workers’ own strength also grew.

The ‘Polder Model’

After World War II (1940-1945), consultations between unions, employers and the government (the ‘polder model’) emerged. Labor conditions and wages were negotiated with each other.  The state pension (AOW) was introduced in 1957 and other social benefits were improved. Limited say came through works councils. However, workers were not given influence over the management of the company through the unions.

A managed wage policy was introduced: i.e., no free negotiation of the collective bargaining agreement (collective bargaining agreement is a written agreement containing agreements on labor conditions such as wages, allowances, payment of overtime, working hours, probationary period, notice period or pension).  This was abolished in 1970.

International competition

In the 1960s/1970s, international competition was felt by entire industries. There was reorganization at the expense of many jobs in shipbuilding. In the textile and clothing industry, jobs were moved to North Africa because of low wages.

Works Council

The works council became an employee affair. Workers could influence important decisions within the company through the works council. The employer no longer automatically presided over the works council. The duties and rights of the works council were defined in the Law on Works Councils (1950).

Privatization and globalization

In the 1980s-1990s, strict austerity measures had to be implemented in the Netherlands. Social security was cut. Government services such as public transport, post, telephone, were privatized. Globalization of the economy caused companies to move abroad and the contracting out of government activities led to worsening working conditions.

Now

More than 100 years after the founding of unions, many things have improved significantly. However, improvements do little to change the dependent and vulnerable position of (most) workers. Decisions on company sales/mergers, company relocations, reorganizations, overtime, layoffs are still ultimately made in boardrooms.

Even if today’s (younger) workers do not see the point of an union (everything is well regulated anyway!) those unions (in 2022, 1,504,000 workers were union members) are still needed, in my opinion. I write that not because I worked in the union for some 23 years but because I think you should always be alert to how socioeconomic conditions are evolving.

Labor Market 2022/2023

CBS (Central Bureau of Statistics) publishes an Annual Report on the Labor Market. The 2022 survey showed that the economy in the Netherlands shrank in the 3rd quarter and consumer confidence fell to an all-time low. Consequently, the business picture at the end of 2022 was negative. One year later (2023), CBS research shows that consumer confidence is still negative and far below the average of the past 20 years.

The number of businesses that went bankrupt in 2023 increased by 60% compared to 2022.  This means that the number of job openings is declining (although there is still a labor shortage at the moment) and temporary workers and workers on flexible employment contracts are the first to lose their jobs. Later, companies then cut the permanent workforce, reducing employment. Then workers’ bargaining power comes under pressure and the rise in collective bargaining wages also slows down.

The National Survey Labor conditions (Nationale Enquete Arbeidsomstandigheden) of the CBS (Central Bureau of Statistics) also shows that the percentage of high task demands increased and the degree of autonomy decreased, resulting in an increase in high-strain jobs (jobs with little autonomy and high task demands). The number of employees with burnout symptoms increased and the work-life imbalance also increased. Absenteeism has increased to 56% and this is the highest level since 1996.

I am convinced that in the last 100 years unions have provided a real improvement in the position of workers but will always be needed.

Johanna