Employers think recent contract talks were too focused on the short-term

This year, the discussions between employers and labor unions over new collectively bargained contracts have had too much emphasis on short-term agreements to the detriment of long-term agreements, said the employers' association AWVN in a final evaluation of this year’s contract deals. This will end up putting pressure on investments, employers warn.

The employers claim that the unions are mainly asking for raises in salary due to inflation, and the wish to keep the employees' buying power at the same level as it was in the past. But that does not come without consequences, said the AWVN.

"The emphasis that the unions place on making salary agreements puts investments under pressure, including investments in employees. In particular, the lack of attention to labor productivity growth will ultimately harm the economy's strength."

There were 439 new collective bargaining agreements settled for 3.7 million employees this year. Employers and the unions agreed on a salary raise of, on average, 7.1 percent. The AWVN said this is a "historically high level."

The newly agreed contract durations were also shorter, said the employees' association. The duration time went from 22 months last year to 14 to 17 months this year. "Collective bargaining parties do not know what to expect and therefore usually choose a relatively short contract."

The negotiations for better work environments were "in a tough atmosphere." They allude to the threats of a strike and other actions by the union. More "final offers" were made this year. "That means that the negotiating parties could not find an agreement and that the employer made a last offer to which the employees could respond." A fifth of the collective deals came from a final offer, much more than in the past.