In the night from Monday to Tuesday, after hours of negotiations, unions and employers reached an agreement on a series of important social files. This is reported by the social partners, who have been meeting since 1 pm on Monday. Minimum wages are going up and landing jobs are also possible from the age of 55. Early retirement is still possible, but from the age of 60 at the earliest. More tax-friendly overtime can also be worked.
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The social partners – united in the group of ten – were able to knock off a draft agreement on Monday night after hours of negotiations. They will have to take that to the government and their supporters later on. They collectively speak of a balanced agreement.
Important for the trade unions is the increase in the minimum wages, albeit in steps. In a first phase (April 2022) these will be increased to more than 1,700 euros, which for some employees amounts to a gross salary increase of 76 euros per month. On a net basis, the unions hope that about 90 percent of that surcharge will remain. In two later phases (2024 and 2026), 35 euros gross will be added each time. But in net terms, people should then be left with more: the social partners are aiming for 50 euros each time. The government must support the latter with additional fiscal measures.
Also about the end of careers unions and employers agreed. SWT, the former early retirement pension, will also remain possible for companies in difficulty, from the age of 60. A demand from the ABVV to lower that age was therefore not achieved. Those who go to SWT must remain available for the labor market up to the age of 62, or must be able to present a career of 42 years.
Older workers can also step into runways: a form of time credit – part-time or four-fifths – to stay on the job for longer. This will be possible from the age of 55.
It is important for employers that there will be more flexibility in the form of overtime. The corona overtime, created during the corona crisis for sectors that were very busy, are being renamed as recovery hours. They will be extended to all companies and all sectors, so that until the end of 2022 120 extra hours of voluntary overtime will be possible at a very favorable tax regime for both employees and employers.
Finally, there will be more time for the equalization of the supplementary pensions for workers and employees. Instead of 2025, that will be 2030. Striking: a part of the future wage margins (0.1 percent) will be spent on that harmonisation. From the next wage agreements it will become an obligation in those sectors where there is still a difference between blue-collar workers and white-collar workers.
Minister of Employment Pierre-Yves Dermagne (PS) satisfied: “Important step forward”
For Minister of Employment Pierre-Yves Dermagne (PS), the agreement is “an important step forward”. The minister said this in an initial response on Tuesday morning. He is particularly pleased with the increase in the lowest wages. That struggle has become “necessary and vital”, it sounds.
The fact that in our prosperous society there are still 70,000 people working every day for less than 10 euros per hour is “unacceptable” to Dermagne. “It shows a lack of respect for these workers, and has shocking social consequences for them and their families.”
The PS member recalls that the increase in the minimum wage was central to the government’s mediation proposal that he presented to the social partners earlier this year.
The agreement means that in 2022 a single worker with a minimum wage will earn an extra 47 euros per month on top of the index. Cumulatively, the net salary will increase by EUR 100 in 2024 and by EUR 150 in 2026. A new increase is foreseen in 2028, after an evaluation of the effects of the previous three stages.
Unions: “Increasing minimum wages is a big plus”
The unions expressed their satisfaction with the increase in minimum wages. “A big plus for us,” said Mathieu Verjans, national secretary of the Christian trade union. The ACV talks about a “defensible compromise”.
“The minimum wages are going up both gross and net,” said Miranda Ulens, national secretary of the ABVV. “We have done the utmost. We’ll see what our supporters think. But it’s a balance.” On Radio 1, Ulens was very positive about the increase in minimum wages. “We have also worked to ensure that of that 75 euros gross, there is really something left over. Because those minimum wages are taxed differently, employees will still earn an extra 65 to 70 euros net.” Ulens calls the fact that the early retirement is not possible at 58 years of age. “Some companies are undergoing restructuring. We hope to be able to negotiate plans that will not leave employees empty-handed. One means for this is the early retirement, it is a pity that we were not able to secure it. Fortunately, there is an alternative with the so-called runways.”
For the liberal trade union, the ‘runways’ are already an important lever to “keep working” and at the same time “make it easier to reach retirement age”, according to chairman Mario Coppens, who talks about a “fair” agreement. He assumes that massive use will be made of the system.
Employers: “More flexible overtime is a good ‘recovery measure”
These more flexible overtime hours should constitute a “relaunch measure” for companies to be able to make “a restart” after the corona crisis, according to Pieter Timmermans, managing director of the Association of Belgian Enterprises (VBO). Unizo CEO Danny Van Assche talks about 120 “simple overtime hours that are attractive to both employees and employers”. Both the FEB and the Unizo business organization spoke of a balanced agreement.
Open VLD chairman Egbert Lachaert: “Satisfied that the SWT age framework remains respected”
Open VLD chairman Egbert Lachaert responded briefly on Twitter. “Time needed for an analysis of the agreement between the social partners, but we are pleased that the SWT age framework is still being respected. Going back in time there again would not be a good idea given the shortage on the labor market and a signal that we do not want to push 50-year-olds out of the labor market.”
