Interprofessional agreement 2011 - 2012

On 18 January 2011, the social partners agreed on a draft social agreement which will determine the remuneration and labor conditions of 2.5 million employees in the Belgian private sector over the next few years.

Salary increase

There is almost no room for a salary increase in the next two years. In 2011, the salaries in the Belgian private sector will only be adapted to inflation. In 2012, there would only be a salary increase of 0.3% on top of indexation. With this, the social partners hope to restrict increases in Belgium to 4.2% for the period of 2011-2012. In neighbouring countries, salaries will probably increase by 5% during the same period.

Blue collar and white collar workers

Moreover, the agreement stipulates how the differences between blue collar and white collar workers must be reduced during the course of the coming years. Belgium is the only country in the European Union where this distinction still has a considerable impact on labor rights and obligations.

The largest differences are found in laws protecting against dismissal. These differences will be reduced in the period of 2012-2017. The notice period for blue collar workers will increase by 20%. White collar workers who earn up to 30,535 EUR gross per year will see very little change: the period of notice remains 3 months per 5 years of seniority, with a small reduction of 2% in 2016-2017. For white collar workers who earn more than 30,535 EUR gross or more per year, the Claeys formula will no longer apply. Their notice period will be legally set to 1 month per year of seniority with a minimum of 3 months. Furthermore, such notice period will be gradually reduced to reach a reduction of 10% in 2016-2017. With regard to dismissal compensations for white collar workers who earn at least 61,071 EUR gross per year, an additional social contribution of 3% will be levied.

These modifications will only apply to workers who sign a new employment contract after 1 January 2012.

Between 2012 and 2017, blue-collar workers will still be entitled to an additional dismissal premium. This premium will be fully paid by unemployment insurance (now the employer has to pay 1/3 in most cases). The dismissal premium will increase significantly for blue-collar workers with more than 5 years of seniority.

A permanent arrangement would be introduced from 2018. The new dismissal protection law would be threefold. A first part would consist of a notice period during which the worker should perform and the normal salary remains effective. If the earner is inactive during the notice period, the salary that would normally have been paid is converted into dismissal compensation. The second part would be an additional “moral” compensation which may be partially exempted from taxes and social security contributions. Finally, the third part would take the form of a dismissal premium paid by unemployment insurance.

The social partners also agreed on basic principles regarding the abolition of other differences between blue-collar and white-collar workers. For white-collar workers, double vacation pay will increase. Blue-collar workers will receive guaranteed salary from the first day of illness (until now, the first day of illness was unpaid). The salary for the first day of illness would be exempt from employer social security contributions. Furthermore, white-collar workers will be entitled to temporary unemployment allowances. Unemployment measures concerning white-collar workers during a crisis period will be maintained.

Finally, it is agreed that eliminating differences between blue-collar and white-collar workers should not lead to additional costs for employers. The entire reform should be cost neutral.

This draft social agreement is yet to be accepted by trade unions and employer organisations. It remains to be seen whether the social agreement will be accepted by trade union members.