Facts numbers
After a tip of the veil (round 0) on Wednesday 2 November, the negotiations really started on Tuesday 8 November (round I). Contrary to usual, the presentation of “facts & figures” came from the employee side: How are we doing as a company according to the employees (this even includes the latest quarterly figures).
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The results and performance of OCI can certainly be called good. That is why expectations with regard to the wage margin are high. Inflation is high. It will therefore be clear that most attention (and room for wages) will be devoted to the structural increase in wage scales and paid salaries. Not unlike usual, purchasing power retention and purchasing power improvement are at the top of the list right now.
Most of the presentation was recognized by the management. Whether the profit that OCI makes in Rotterdam (ammonia transhipment) can be attributed to the Limburg company or whether it is taken at corporate level was a point of discussion.
The wage question
Then there was an extensive discussion about the level of inflation: It would actually be lower than what we hear in the media. Inflation would be considerably lower due to government measures. Then it was about the average collective labor agreement wage increase in the Netherlands (which is lower than what employee organizations are now asking from OCI). The results of OCI are now good, but the question is whether that will remain the case. High or low inflation, the “feel inflation” is definitely dodgy and everyone notices that every day.
no awareness , no appreciation?
The smart Rotterdam route (ammonia from Algeria) only works due to the enormous flexibility and commitment of the employees (switching off one AFA, switching on another and vice versa). The same goes of course for the colleagues and their flexibility and commitment at OMM and the other business units. OCI does not appear to realize or appreciate this.
At the end of round I, there was an opening bid of 3,75% (structural) with a one-off gross payment of €1.000. And what do we do with the rest of the inflation at a company that is doing well?
Worrying
It may be the highest opening bid in years, but it remains well below our expectations. OCI is of the opinion that the bill for inflation should not simply lie on the employer's plate (and that is a position of principle).
Purchasing power retention (let alone improving purchasing power) is therefore coming under pressure. If all companies feel this way – and unfortunately they do – this will put pressure on domestic spending and a large part of our economy will again suffer from this. Dutch companies (including OCI) have become addicted to wage moderation since 1972. In recent years, we have been helped by low inflation. But now that prices are soaring, people are still in the same wage moderation cramp. What's really annoying is that we won't see prices fall for the time being.
With a profitable company you expect that there will also be more space this year. It is about a balanced distribution of that operating result among the stakeholders and that is not only the shareholders. The crystal ball is missing, but short-term expectations are also good.
At the start of negotiations
It's good that OCI is doing well. Wage moderation will no longer be an issue.
Challenge
Whatever inflation figure you use, it is in any case well above 3,75%. For people who like challenges, we've got one right here. How do we close the difference?
Round II
On Wednesday November 16, OCI will respond to the rest of our proposals.
Contact
If you have any questions regarding this message, please contact the representative, John Kapteijn, by sending him an e-mail at John.kapteijn@unie.nl.
