Available margin for wage development from 0.8% to 1.1%: the social partners have reached a draft agreement

In our Infoflash of 14 February 2019 we already informed you that the Central Business Council ('Centrale Raad voor het Bedrijfsleven') had published its report in which the available margin for wage development was set at 0.8%. The trade unions were unable to agree, stepped out of the consultations and organised a national strike on 13 February 2019.

The Group of Ten then met again and negotiations were restarted. At their first meeting, the social partners asked the Central Business Council to recalculate the maximum margin. Taking into account some changes in circumstances, the maximum margin was increased to 1.1%.

On the basis of this increased percentage, negotiations were resumed and a draft agreement was concluded. This draft will now be submitted by the employers' and employees' federations to their members for approval. Once this has been done, it will be included in a generally binding CNT/NAR CBA.

Once this draft agreement is final, we will not hesitate to inform you immediately.

In the meantime, we already provide you with the main themes of the draft agreement below.

Wage standard

As for the period 2017-2018, the maximum margin for the wage cost development for the next 2 years (2019-2020) is fixed at 1.1%. This wage margin can be implemented at both sector and company level.

Before coming into action, it is recommended to wait until it is known whether your JC will conclude CBAs in this matter. When you now award wage increases or other benefits you must be aware that you might be obliged to award sectoral benefits later (on top of the benefits you have chosen). Besides, if you exceed the wage standard you may be penalized.

Of course we will keep you informed via our sectoral documentation of how your sector will implement the wage margin.

Finally, we note that scale increases on the basis of seniority and wage increases remain guaranteed. Also specific wage increases (such as innovation premiums) can still be awarded on top of the wage standard. Should you require additional information, do not hesitate to contact our legal service legalpartners@partena.be.

Minimum wages

On 01 July 2019, minimum wages will increase by 1.1% or 10 cents/hour. This is the first adjustment since 2008.

Contribution public transport

The social partners wish to encourage the choice of public transport and alternative forms of transport by adapting collective bargaining agreement No. 19octies:

• From 1 July 2019, the employer's contribution to public transport will increase from 64% to 70%;
• From 1 July 2020, the minimum distance of 5 km will be abolished.

In addition, the social partners also recommend the use of a bicycle allowance.

Voluntary overtime

The number of voluntary overtime hours will be increased from 100 to 120 hours.

Dismissal package (Article 39ter of the Employment Contracts Act)

The social partners intend to work out an inter-professional regulation by 30 September 2019 with regard to the implementation of part of the severance pay.

Unemployment with corporate allowance (UCA) and wind-down time jobs (landingsbanen)

The social partners refer to their framework agreement of 18 December 2014.

This implies the following:

• UCA with 33 years occupational history ( + 20 years of night work or incapacity for work in the construction sector or strenuous occupation): 59 years (up to 30.06.2021) and 60 years (as from 01.07.2021);
• UCA with 35 years occupational history in a strenuous occupation: 59 years (up to 30.06.2021) and 60 years (as from 01.07.2021);
• UCA with a long career: 59 years (up to 31.12.2020) and 60 years (until 01.07.2021);
• UCA for companies in difficulty or undergoing restructuring  58 years (up to 30.12.2019), 59 years (up to 30.12.2020), 60 years (as from 31.12.2020).

1/5 career reduction under wind-down time jobs exception regimes remain possible from 55 years. Part-time wind-down time jobs from the age of 57.

Extensions

Different measures that are traditionally linked to the IPA are extended for the next 2 years. These are:

Measures impacting the wage package of your employee

1. The innovation premium system;
2. Financing and preservation of the government allowance in the context of the 80/20 system (contribution of the employer in the costs of commuter traffic via a third-party payer agreement);

Measures influencing the termination of the employment contract of your employee

1. The penalty when no outplacement is offered to your entitled employees is maintained at €1,800.

Measures with regard to risk groups

1. The employer contribution of 0.10% for efforts in favour of persons belonging to risk groups is maintained;
2. If the sector provides for an employer contribution of 0.15% for risk groups, the exemption to employ first job employees is maintained.

Prosperity-linked mechanism

The social partners have developed a proposal for implementing the available budget for 2019 and 2020, with the aim of further closing the poverty gap and providing specific solutions for specific situations of cases worthy of protection (single parents).

Source:  Inter-professional Agreement 2019-2020.