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ABU says labour market reforms can only continue if implemented fully amid collapse of Dutch government

18 July 2023

Following the recent collapse of the Dutch government, the director of the Dutch Federation of Private Employment Agencies (ABU) Jurriën Koops said the labour market reform ‘must fully continue’.

Koops said, “Either the labour market reform is fully continued, or declared completely controversial. As far as we are concerned, the first.” If the reforms are declared controversial they would be passed to a new cabinet, which Koops said could be lead to changes in the measures.

Earlier this month, the Dutch government collapsed because of a disagreement between coalition parties over asylum policies. The conservative VVD party led by Mark Rutte had been trying to limit the flow of asylum seekers, following a row last year about overcrowded migration centres, but his plans were opposed by junior coalition partners.

“It was clear that the cabinet had been struggling for some time to reach agreement on complex dossiers,” said Koops. “Still, the fall of the cabinet, especially at this time, was a surprise. The subject of migration on which the cabinet fell is an important subject for society. But also an important subject for our sector, because temporary workers play a role in both labour migration and helping status holders find work.”

Earlier this year Minister of Social Affairs and Employment Karien van Gennip published a letter with proposals for the reform of the Dutch labour market. It proposes further legal tightening of temporary agency work with the aim of more security for employees and more protection for the self-employed.

The ABU is urgently lobbying to ensure the reforms are not  amended.

“The reform of the labour market can only be continued if the proposed package is fully and simultaneously implemented,” Koops said. “So no cherry picking is done and no additional measures, such as the maximum borrowing period, are added. As far as we are concerned, it cannot be the case that only the intended self-employed persons regulations are declared controversial, while the employment law rules for temporary employment are being amended. It's ‘out together, home together.’"

All proposals arising from Van Gennip's letter of April this year must be assessed in conjunction, Koops added.

“Because otherwise there will be two speeds and it could just be that the self-employed will be regulated two or three years later than temporary sector,” Koops said. “That is unacceptable to the ABU. It is particularly bad for the desired balance on the labour market. And, as said, not in line with the SER (Social and Economic Council of the Netherlands medium term) advice, which emphasises the importance of the integrity and simultaneity of the package.”

A motion on labour migration by Pieter Omtzigt (an independent Eurosceptic member of the Dutch House of Representatives) was recently adopted by the House of Representatives, says Koops. It advocates further detailing of the measures prepared by the cabinet regarding labour migration and submitting them to the House of Representatives in the autumn.

The ABU predicts that the political situation will lead to delays in the reforms.

“The labour market package would be introduced on 1 January 2025 or 1 January 2026. That will certainly take a year to a year and a half longer,” Koops said. “This means that the uneven playing field and the current imbalance in the labour market will continue to exist. In times of scarcity, this is very detrimental to the labour market.”