{"id":2068,"date":"2013-02-14T14:45:37","date_gmt":"2013-02-14T14:45:37","guid":{"rendered":"http:\/\/taleninstituut-utrecht.nl\/nieuws\/"},"modified":"2013-02-14T14:45:37","modified_gmt":"2013-02-14T14:45:37","slug":"dutch-ask-should-older-workers-earn-less-as-french-company-asks-them-to-accept-pay-cuts","status":"publish","type":"post","link":"https:\/\/taleninstituut-utrecht.nl\/en\/dutch-ask-should-older-workers-earn-less-as-french-company-asks-them-to-accept-pay-cuts\/","title":{"rendered":"Dutch ask should older workers earn less, as French company asks them to accept pay cuts"},"content":{"rendered":"

A FRENCH multinational’s suggestion in the Netherlands to ask older\u00a0 workers to accept pay cuts as a cost-cutting measure has touched a raw nerve as\u00a0 the Dutch economy faces a slowdown and rising unemployment. <\/strong><\/p> <\/div>

Unions see the idea doing away with the principle of paying older workers\u00a0 more for their experience as an attack on a fundamental right, while employers\u00a0 see it as a solution to avoid layoffs in a crisis-hit economy.<\/p>

The debate has raged in the Netherlands since French IT giant Capgemini’s\u00a0 Dutch general manager, Jeroen Versteeg, said he was looking at “calibrating”\u00a0 5,000 Dutch-based employees to see if salaries matched current market value and\u00a0 productivity.<\/p>

“Previously, this branch has always done well, with skyrocketing salaries to\u00a0 match,” Mr Versteeg told the Financieele Dagblad (FD) daily last month.<\/p>

“But the market has changed and we have to bring ourselves in line with\u00a0 it.”<\/p>

Mr Versteeg said the relentless economic crisis raging in Europe since 2008\u00a0 has changed the situation in the sector dramatically.<\/p>

Mr Versteeg said in some cases, specialist fees in the IT market have dropped\u00a0 by as much as half over the last four years.<\/p>

Consequently, newspaper reports said Capgemini will ask some 400 workers who\u00a0 the company thinks might be earning too much, to take voluntary salary cuts of\u00a0 up to 10 percent.<\/p>

The company denies it’s about age, but spokeswoman Madelon Kaspers said: “A\u00a0 person aged 23 and at the start of a career is not likely to have a salary\u00a0 imbalance.”<\/p>

“With a person aged 35 or 45, it may well be the case. It’s not about age,\u00a0 but about the balance between market value and reward.”<\/p>

Ms Kaspers said Capgemini saw the request for a voluntary pay cut as an\u00a0 alternative to mass job losses, which it believed to be “socially\u00a0 undesirable”.<\/p>

Under Dutch law, a company may not force workers to accept lower salaries and\u00a0 those who refuse to take a voluntary cut will be offered training to broaden\u00a0 their skills base, Ms Kaspers said.<\/p>

But, she added, “in the current financial situation it’s not possible to\u00a0 guarantee jobs.”<\/p>

In the Netherlands – as well as in France and Belgium – employees have always\u00a0 earned more as they grow older and Dutch workers see the principle of a salary\u00a0 increasing with age and experience as sacrosanct.<\/p>

But with ageing workforces around much of the world, the Organisation for\u00a0 Economic Cooperation and Development warned age-linked pay scales are becoming\u00a0 costlier.<\/p>

“Seniority-pay arrangements probably make less economic sense for employers\u00a0 today than they did in the past,” the OECD noted in a report.<\/p>

In 1966, half of employees in industrialised nations were under 35 and the\u00a0 average age was 34.<\/p>

By 2011 that figure had dropped to just over a third, with the average age\u00a0 climbing to 40 years. By 2050, the average age will stand at 42.<\/p>

“It is not possible for employers to pay a growing number of older workers\u00a0 more than their worth in productivity terms when there is a declining number of\u00a0 younger workers who are paid less than their productivity,” the OECD report\u00a0 pointed out.<\/p>

A recent study by three Dutch academics found that 75 per cent of the\u00a0 country’s employers expect the wage-productivity gap to increase further as the\u00a0 workforce ages.<\/p>

“Except for the United Kingdom, employers do not apply demotion of older\u00a0 workers to balance pay and productivity,” said the study by Wieteke Conen, Kene\u00a0 Henkens and Joop Schippers, which also looked at the situation in numerous\u00a0 European countries.<\/p>

Meanwhile, unemployment is on the rise in the Netherlands.<\/p>

The largest bloc of the unemployed is the 45-65 age group, and with the\u00a0 retirement set to rise from 65 to 67 by 2021, the suggestions of a salary cut\u00a0 have provoked a vociferous debate.<\/p>

As far back as 1996 the Dutch government’s think tank, the Central Planning\u00a0 Office, noted that Dutch salaries were out of proportion with performance for\u00a0 certain employees.<\/p>

Three years ago, then social affairs minister Piet Hein Donner mooted the\u00a0 idea, saying older employees’ salaries “needed to be looked at”. His comments\u00a0 were met by a fierce outcry from unions.<\/p>

Now that Capgemini has rekindled the debate, unions are once again furious\u00a0 and analysts sceptical.<\/p>

“The commotion over Capgemini’s plans… makes it clear how sensitive the\u00a0 position of older workers in the marketplace is,” Paul de Beer, labour relations\u00a0 lecturer at Amsterdam University wrote in an opinion piece in the FD.<\/p>

Capgemini’s plan “is possible, but whether it’s a good idea is another\u00a0 question,” added Lei Delsen, associate professor at the Nijmegen School of\u00a0 Economics.<\/p>

“Companies should be careful of lowering salaries for older workers, it will\u00a0 have an impact on (overall) productivity,” he told AFP.<\/p>

A spokesman for FNV Bondgenoten, the Netherlands’ largest union claiming some\u00a0 475,000 members, called it a “veiled round of lay-offs.”<\/p>

Reiner Castelein of Dutch union De Unie said: “It’s like being ambushed by a\u00a0 highwayman jumping out from the bushes saying: ‘Your money or your life’.”<\/p>

“We are advising people not to take the cut,” he told AFP.<\/p>

Other multinationals operating in the Netherlands have been silent on whether\u00a0 they think Capgemini’s idea is a good one.<\/p>

But with the Dutch economy not expected to return to growth until next year\u00a0 due to the ongoing eurozone debt crisis, many companies may find themselves\u00a0 under increased competitive pressure.<\/p>

Companies in southern European countries hit hardest have shed jobs and\u00a0 lowered wages in order to regain their lost competitiveness.<\/p>

Source: www.news.com.au<\/a><\/p>","protected":false},"excerpt":{"rendered":"

A FRENCH multinational’s suggestion in the Netherlands to ask older\u00a0 workers to accept pay cuts as a cost-cutting measure has touched a raw nerve as\u00a0 the Dutch economy faces a slowdown and rising unemployment. Unions see the idea doing away with the principle of paying older workers\u00a0 more for their experience as an attack on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2068","post","type-post","status-publish","format-standard","hentry","category-geen-categorie-en"],"yoast_head":"\nDutch ask should older workers earn less, as French company asks them to accept pay cuts - Taleninstituut Utrecht - zakelijke taaltrainingen op maat.<\/title>\n<meta name=\"description\" content=\"Taleninstituut Utrecht \u2013 uw partner voor zakelijke taaltrainingen. 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