The Netherlands: EIRO annual review 2008

In the first half of 2008 the relationship between government and social partners was frosty. The entwining of two issues - labour participation and dismissal law - held all parties in a strangling hold. Eventually agreement was reached on a new activating policy on unemployment, with the issue of dismissal law being delegated to a research committee. In the recovering economy it was possible to have higher wage demands and since at the beginning of 2008 it was espected to have labour scarcity, employer associations called for responsible wage development but finally higher wages demand were met in agreements. The improved relationship among social partners and the joint initiatives were being further developed when the financial crisis hit the Netherlands in August. As the crisis turned into an economic recession, priorities have changed in keeping companies afloat and employees at work. Government and social partners have now somewhat closed ranks to cope with the effects of the crisis.I