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Supplementary policy agreement

On 25 March 2009, the Government presented 'Working on the Future', a policy agreement augmenting the 2007 coalition agreement 'Working Together, Living Together'. The new policy agreement contains the Dutch crisis package aimed at achieving economic recovery.

The global economic crisis represents a significant challenge to Dutch society. The consequences are acute and far-reaching, and many people in the Netherlands will unfortunately notice this in their personal lives. Jobs and income security are being undermined, businesses are struggling and the national debt is rising sharply. In these circumstances, the absolute priority for the Cabinet is to restore jobs, business activity and solidarity, all in the context of maintaining social cohesion.

The Cabinet's primary response to crisis (in the fall 2008) has been one of immediate action with extensive support of the financial sector as well as of the introduction of a temporary reduced working hours arrangement. The Cabinet, in close consultation with the social partners, has formulated a coherent package of measures. The main purpose is to prevent unemployment or to minimise the duration of unemployment.
This summary gives a brief overview of the Cabinet's measures, focussing on the areas of labour market and social policy. The Cabinet has set out the following policy framework, as an addition to the pre-existing coalition agreement:

I Targeted economic stimulus package, especially for 2009 and 2010, with an emphasis on short-term employment. Both in 2009 and 2010, around three billion euros will be invested in the labour market (especially targeted at youth), education and knowledge; for a sustainable economy; for infrastructure and construction (including the construction of homes); and for making credit more easily available for businesses. In addition, local and provincial government will spend an estimated one and a half billion euros on stimulating economic activity. The budget for unemployment benefits will be expanded (by one billion euros in 2009, four billion in 2010, four and a half billion in 2011)

II Restoration of sound government finances in order to preserve public provisions from 2011. Budgetary discipline is to be maintained: implementation cost overruns (estimated to be 3.7 billion euros) will be absorbed. In addition, the interest charges on the greater EMU deficits in 2009 and 2010 will be covered from 2011 (1.8 billion). This forms part of the road to recovery of government finances by 0.5 per cent of GDP per year.

III Long-term agenda. This is aimed at sustainability and energy, innovation and knowledge, on urban renewal and developing districts, as well as the long-term preservation of our public provisions - in particular by keeping control of the costs of healthcare, by raising the pensionable age to 67 years and canceling the indexation of what is known as the eigenwoningforfait (the notional income based on the rateable value of homes that homeowners 'earn', and on which they pay tax) for homes worth in excess of one million euros.

I Overview of the labour market measures

The Cabinet and social partners have formulated a joint approach for dealing with the situation on the labour market in the immediate future. The Cabinet has made extra resources available for financing this package of measures. 250 million euros in 2009, 350 million in 2010 and 100 million in 2011 will be invested in the labour market. For improving the labour market situation of young people 100 million extra and 120 million extra are to be invested in 2009 and 2010 respectively in improving the position of young people on the labour market. The labour market measures are outlined below.

Greater dissemination and use of labour market information

In order to help people find new employment, it is essential to have a clear overview of the regional labour market. The availability of such information is being improved through the development of a structural picture of the industries and regions where there are shortages and an excess of labour. The information will be made available on a periodic basis.

Intensification of assistance given to jobseekers

As well as being given assistance in finding work, everyone who is entitled to benefits should receive the right benefit in time. The Cabinet is therefore making extra resources available for implementation costs and for reintegrating jobseekers into the labour market . Since the first of March, a national network of thirty mobility centres has been established  at offices of public employment services with a specific role in regional labour market policies. Their most important task is to bring all regional public and private parties together in order to encourage them to collaborate more closely and more effectively. This will make it easier to guide jobseekers towards still open vacancies, and to anticipate where future demand for employees will lie.

Possibilities for retaining links with employees

Since December 2008, it was possible for businesses to apply for reduced working hours in order to gain a breathing space in the wake of the onset of the crisis. This scheme was revoked on 21 March 2009 - instead, companies now have the option of allowing their employees to claim unemployment benefit for part of their working hours.

Extended opportunity for part-time unemployment benefit (WW).

The extendedscheme for part-time unemployment benefit was introduced on 1 April 2009. Employers are given the opportunity of reducing the number of working hours by maximum fifty per cent, during which period the employees receive unemployment benefit for the hours that they are not working. The obligations in the Unemployment Benefits Act regarding reintegration back to work and the period of notice do not apply. The scheme initially applies for a maximum of three months after the initial application, although it can be extended twice, for six months at the maximum each time. Initial applications can be made until 1 January 2010. The scheme is accompanied by training agreements of employees during the periods that they are not working. If an employee loses his or her job in the period of 'part-time' unemployment or in the three months thereafter, the employer will be obliged to reimburse the Institute for Employee Benefit Schemes (UWV) for half of the unemployment benefit that was paid while the employee was partially-employed. The maximum budget for the scheme has been set at 375 million euros.

Facilitating labour mobility

To facilitate work-to-work-transitions, local cooperation was established between sectoral or regional employers and the UWV, amongst others in Branch of industry service points. Within these servicepoints the local employers are in charge of the services that are provided : their needs are the determining factor while the UWV is responsible for the implementation.
At the same time more room will be created for private initiatives for assisting employees at risk of being dismissed, whether or not in cooperation with the UWV. There are various tools that can be deployed here: temporary employment agencies, zero-hour contracts, pooling by companies in the same branch of industry, redundancy programmes, education and development Fund (O&O fund). Tailor made solutions are key here. Industry organisations can use part of their O&O fund for training. In consultation with the social partners, the Cabinet will devote some of the extra resources that have been made available  for the problems in the labour market to helping people find a new job.

Facilitating training

Training is an important instrument to enhance the employability of people and to support work-to-work-transitions. Primary responsibility for training lies with employers and employees. Nevertheless, the government facilitates it in various ways. Against the background of this agreement, the Cabinet is looking at a number of additional measures.

Training for the unemployed.

As well as providing unemployment benefit, the UWV can also reimburse the costs of training. The maximum period for which a reimbursement is made is three months, in order to target the training as much as possible towards a particular job,. It has now been decided to enforce this rule more flexibly if there is a prospect of a real vacancy at the end of the training, or if the training is for a profession that is characterised by a shortage of labour.

Leerwerkloketten.

Leerwerkloketten (learning and working service desks) improve the transition from education to the labour market. In 2009, learning and working service desks will be created at the thirty regionally based employment centres, which are linked to the mobility centres. They will also receive structured funding.

European Social Fund.

In March a maximum of 150 million euros can be requested for the purpose of training low-skilled and unskilled employees. In March 2009, up to 90 million euros will be available from the ESF for reintegrating jobseekers back into the employment process.

Grant for retraining employees who are threatened with redundancy.

In order to encourage employers to take on employees from other branches of industry, grants are available for retraining employees. The 'new' employer may be eligible for a grant of fifty per cent of the retraining costs, up to a maximum of 2,500 euros. A precondition for eligibility to the grant is that it be used for (re)training resulting in a diploma or qualification. The employer must also pay an equivalent amount for the training himself.

Accreditation of Prior Learning (APL).

The Cabinet will make extra resources available for APL programmes. If a former employer allows an unskilled employee to take part on an APL programme, the government will reimburse fifty per cent of the costs. The exact details of how these extra resources are to be deployed for retraining and APL programmes will be refined between the Cabinet and the social partners.

Vulnerable groups on the labour market

In order to reduce long-term benefitdependency, efforts must be aimed at making sure vulnerable groups remain available for the labour market and, wherever possible, to help them move on to a new job as soon as possible. Existing and additional instruments and budgets can make a contribution here. The people primarily concerned are those who are currently unemployed, occupationally disabled persons, and members of non-western ethnic minorities. The economic crisis and the increasing rate of unemployment represent a increased risk of poverty and greater reliance on debt help organisations. Municipalities have various financial resources at their disposal for fighting poverty and relieving debt. The Cabinet is also making extra resources available for debt relief - 30 million euros in 2009, 50 million in 2010 and another 50 million in 2011.

Young people on the labour market

In the near future, large groups of young people will be leaving school and will enter the labour market for the first time. The risk of sharply rising youth unemployment requires urgent measures on the part of the Cabinet. In consultation with the State Secretary for Education, Culture and Science, the Minister for Housing, Communities and Integration, and the Minister for Youth and Families, the State Secretary for Social Affairs and Employment will shortly be producing a plan of action, which will be discussed with municipalities and the social partners. The Cabinet will be making extra resources available in 2009 and 2010 for combating youth unemployment.

The Investing in Young People Act (WIJ).

In the current economic situation, it is vital that this Act be introduced quickly. The proposed law would oblige municipalities to make young unemployed people aged up to 27 a working/learning offer. Once the economy starts to gather pace, young people will then be in a position to play a full part in it.

Combating early school-leaving.

Policies aimed at reducing early school-leaving, and at keeping young people on at school will be intensified, especially where they are being trained for industries where a surplus of labour exists.

Provision of apprenticeship places.

Apprenticeship places are a good way of bringing young people and potential employers together. Young people gain experience and may be able to move on to a regular job, this prevents them from a situation in which they may not be able to complete their education. This also applies to young people with impairments.
For many young people, the lowest wage on offer in practice turns out to be much higher than the relevant legal minimum youth wage. To the degree that there is scope to do so, this can be used for increasing employment opportunities for young people. It has been agreed between the social partners that every school-leaver who has been unemployed for at least three months will be offered a work traineeship place. If possible, arrangements will be made for him or her to remain at the place of work and to move into a regular position after the traineeship is over. The social partners will also make every effort at ensuring that students are not prevented from obtaining their qualifications due to a lack of traineeship places.