Substantial rise collectively negotiated wages in third quarter

Collectively negotiated wages increased by 2.1 percent in the third quarter of 2007 relative to one year previously. In the second quarter, wages increased 1.6 percent. The increase is the same as over the whole year 2006.
Collectively agreed wages excluding special allowances increased by 2.2 percent in the third quarter relative to one year previously.

Employers’ contributions unchanged

The contractual wage costs increase in the first three quarters of 2007 almost equalled the collectively agreed wage increase, which means that the total sum of employers’ contributions was almost equal to 2006. Last year, the rise in wage costs was only half the increase in collectively agreed wages, mainly due to lower employers’ contributions for disability and (pre)pension schemes in 2006 compared to 2005.

Quarterly increase collectively negotiated wages and contractual wage costs

Most substantial wage increase in transport and communication

The largest hourly wage increase ((2.6 percent) in the third quarter of 2007 was recorded in the sector transport and communication. The increase in the sectors financial institutions ((2.5 percent) and public administration ((2.4 percent) was also considerable. With 1.2 percent, the smallest wage increase was recorded in the sector hotels and restaurants.

Collectively agreed wage increase by sector

Special allowances more moderate in 2007

When comparing 2006 and 2007, there are noticeable differences in collectively negotiated wages including and excluding special allowances. In 2006, collectively agreed wages including special allowances appeared to be higher than or equally high as collectively agreed wages excluding special allowances in nearly all sectors. This phenomenon was especially evident in the sectors financial institutions and public administration. One of the reasons for the increase in special allowances was the contribution made by employers to life-course savings schemes and medical expenses.

In the third quarter of 2007, the rise in collectively agreed wages including special allowances was often smaller than excluding special allowances because special allowances were less high in 2007 than one year ago. In the sectors construction, public administration and financial institutions, the decrease in the third quarter of 2007 followed a marked increase in special allowances in 2006.

Monique Hartog