Strike will have consequences for NXP's investment plans in Netherlands, chipmaker warns

Chipmaker NXP warns that the strike in Nijmegen that started on Tuesday could have consequences for the company’s investment plans in the Netherlands. “The strike and salary increases impact the choice to invest in NXP in the Netherlands.”

Approximately 1,600 people work at the Nijmegen branch. More strikes may follow at other locations, trade union FNV announced. “The investment climate in the Netherlands is deteriorating. This does not help,” an NXP spokesperson responded.

Chip machine maker ASML and dredging company Boskalis previously threatened to (partly) leave the Netherlands. NXP has also been concerned for some time about measures that make it less attractive for foreign knowledge workers to come to the Netherlands. “More than half of our employees come from abroad,” the spokesperson emphasized. “The Netherlands is not an island. If people no longer feel welcome, they’ll go somewhere else.”

FNV has been negotiating a new collective labor agreement for the approximately 3,000 NXP employees in the Netherlands for months. The union demands a 9 percent salary increase, but NXP refuses to agree. The other involved trade unions - CNV, De Unie, and VHP2 - do not support the strike.

NXP is the former semiconductor division of Philips. The company has offices in over 20 countries. According to the NXP spokesperson, the strikes have a “negative impact” on the company’s international image. “And the Netherlands is already not doing well internationally.”

FNV reacted laconically to NXP’s threat and said that it would not call off any follow-up strikes as a result.

De Unie called FNV’s strike “inconvenient.” Negotiator John Kapteijn is not surprised by NXP’s threat. “Our members will not even consider going on strike at NXP,” said Kapteijn. “They know how difficult the market is at the moment. A strike is not good for the image of such a company.”

The union points out that NXP staff already received a salary increase last year. “And this is not a sector that is underpaid. People earn well here.” NXP is playing poker, Kapteijn said. “It’s about who blinks first. I understand the sentiments, but I wonder whether such a strike would be useful. But some members simply have more of a sense of reality than others.”

CNV can somewhat understand NXP’s arguments, said negotiator Arjan Baselmans. According to him, the 9 percent salary increase that FNV demands is also on the high side. “But given the high profits, NXP has a duty to compromise on negotiations.”

Amilde Schuur of VHP2, the union for technical staff, thinks NXP’s warning is “not an empty threat.” She called FNV’s wage demand unrealistic. “This does not serve the interests of NXP staff.”