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Royal Philips: Negotiations collective labor agreement and social plan have failed!

After four negotiations, no CLA result was reached on Thursday 8 March 2018. The main reason is that the parties to the collective labor agreement cannot achieve a satisfactory result on the pay rise for 2018 and a renewal of the central social plan (CSP).

In the report that has gone to the employees of Royal Philips, the employer wants to make employees believe that they have put forward great proposals. Many of these proposals concern experiments, pilots and studies. In our view, these are not collective labor agreements.

Pay raise

Royal Philips did not get further than 1% as of May 1, 2018 and 1% as of October 1, 2018. In terms of volume, that is very far from the average 3,5% that the joint vakbondand put it on the table. Royal Philips did not want to move any further on that aspect and then we as parties are done talking. The vakbondand have stated very clearly that they were quite willing to drop a little in the wage requirement. However, this was insufficient for the employer. If we compare Royal Philips' wage offer with the exorbitant wage adjustment of the top executive, the 2 x 1% is a tip. Why do employees have to settle for a low pay rise when the top executive has gained almost 8%. We think that is scandalous.

Other CLA matters

With regard to the other collective labor agreements, Royal Philips did not go further than:

  • Include CLA article on Informal care;
  • Setting up an informal care coach. First also investigate further;
  • Extending emergency leave. However, no specific number is mentioned;
  • Ensuring good internal communication and information about informal care. This proposal is also buttery soft;
  • Conducting research into the added value of an informal care broker. So that's such a survey;
  • Offering a free personal scan every year. Think of career opportunities, vitality scan or financial advice. We have not gone into more depth about this;
  • Good attention to reintegration after a burnout;
  • Good approach to conflict resolution;
  • Further research into the situation of shift workers;
  • Extension of the maternity leave from 2 to 5 days. That is position, but could have been broader;
  • Establishment of an 80% working, 90% salary and 100% pension accrual scheme. The employees must then surrender 13 lost days for this;
  • Equal work and equal pay for temporary workers. Royal Philips wants to arrange this at a local level if problems arise. The employer does not want to record it in the collective labor agreement.

All in all, we must conclude that these agreements do not deserve the label collective labor agreement. We are therefore finished on that part for the time being.

During the negotiations for the collective labor agreement, the joint vakbondand established a clear link with the CSP. The social plan expires on 31-12-2018 and should be adjusted in our opinion. Below is the state of affairs that Royal Philips came up with:

Central social plan

  • Term: 3 years because Royal Philips does not want to run any risk with changing legislation;
  • Royal Philips would rather keep the cut (no more build-up after 1-7-2015);
  • Training budget may be increased to € 7.000 per employee;
  • Making voluntary severance arrangements more attractive than is currently the case, Royal Philips rejects;
  • The severance payment must be based on the statutory transition payment with a correction factor of 1,5. That is below the level of the current social plan; After a lot of pressure on the part of the vakbondand the employer put the maximum space correction factor 1,8 on the table. That was more or less “the final offer” although it was not spoken out loud.

The joint vakbondand have indicated that it is very indecent for a company that makes 2 billion profit to put its employees aside in this way. Royal Philips is currently in the process of reorganizing in many areas, so there will be no central social plan after 31-12-2018.

Wat nu?

In the coming period, the vakbondand continue to inform members through pamphlets, meetings and sessions to determine what to do next. If nothing happens, then the collective labor agreement is gone and there is no longer a central plan. In addition, the vakbondand consider further next steps. Which they are, that is the topic of discussion.

So keep following the reports and any company visits from the vakbond.

If there is a call for a member or network meeting, come to the meeting. It seems that Royal Philips is on a collision course and we have to work together vakbondand try to find an answer to that.

So much for the state of affairs.

If you have any questions, please contact Suat Koetloe by e-mail suat.koetloe@unie.nl or call 06-52522061.