Cabinet drops benefit cuts, but unions say offer insufficient and keep strike plans

The Dutch government will not proceed with planned cuts to unemployment and disability benefits in their current form after unions threatened strike action. Unions FNV, CNV, and VCP, however, say that, at first glance, the revised approach remains "completely inadequate" and too unclear to accept, meaning they still plan to strike if the demands are not met before May 30.

Social Affairs Minister Hans Vijlbrief informed unions that the cabinet is abandoning key elements of its planned reforms, including proposals to shorten unemployment benefits, reduce maximum disability payments under the WIA system, and eliminate a separate benefit category for people who are fully and permanently disabled.

Unions said the government’s latest proposals for the state pension system, unemployment insurance, and disability benefits are completely insufficient at first sight. The unions previously issued an ultimatum, threatening to strike after May 30 if the government did not abandon the social security cuts.

The government had been seeking to save billions of euros through changes to unemployment, disability, and pension systems. Vijlbrief also added that the government will still need alternative measures to stabilize public finances.

Employer organization VNO-NCW also weighed in on the dispute. Chairman Coen van Oostrom urged the government not to stick so rigidly to its original proposals and to ensure that negotiations with unions resume.