CAO wage increase stable in third quarter

Collectively negotiated (CAO) wages were 1.3 percent higher in the third quarter of this year than in the same period in 2009. The increase is about the same as in the second quarter. The Dutch inflation rate was 1.6 percent in the third quarter of 2010. For the first time since 2005, the increase in CAO wages is lower than the inflation rate. 

CAO wages and contractual wage costs per quarter

Most substantial increase in sector health care and welfare

In the third quarter of this year, CAO wages rose most rapidly in the sector health care and welfare (2.5 percent). In this sector, the personal life stage-related budget was introduced in a number of CAO agreements. As a result, hourly wages increased. In many CAO contracts, year-end bonuses were also raised.
In the third quarter, one in three CAO agreements in the sector health care and welfare have as yet not been concluded. Currently, home carers and personnel of residential care homes and nursing homes are negotiating better agreements.

Least growth in public utilities and sector hotels and restaurants

With 0.3 percent, the CAO wage increase was lowest in the sectors public utilities and hotels and restaurants. An important CAO agreement in the sector hotels and restaurants did not include wage increases for 2010. The wage increase will be postponed until next year.

CAO wage increase by sector

Contractual wage costs 1.5 percent up

In the third quarter of 2010, contractual wage costs grew by 1.5 percent relative to one year previously, i.e. the same as in the second quarter. With 2.5 percent, growth was above average in the subsidised sector (e.g. care). Wage costs increased by 1.8 and 1.2 percent respectively in the public and private sectors.

Increase contractual wage costs by CAO sector

Most CAO contracts in sector education expired

As the duration of most collectively negotiated contracts in the sector education has expired, results for this sector are not available. Due to the political situation in the Netherlands, new primary terms of employment have as yet not been negotiated.
By the end of the third quarter, more than 80 percent of collectively negotiated agreements for the entire year 2010 have been ratified. On the basis of 80 percent of CAO agreements, the CAO wage increase over 2010 would be 1.3 percent.

Monique Hartog and Dick ter Steege