Belgian government gives employers early Christmas presents

‘Voka is my real boss. If Voka is not happy, I’m not happy’, Bart De Wever famously said in the summer of 2010 about the Flemish employers’ organisation. The present prime minister was the party president of the right-wing Flemish nationalist N-VA at the time. This week, Flemish employers openly expressed their happiness.

Traditionally, employers' organisations and trade unions decide on wages, labour rules, and working conditions in Belgium. But for many years, social dialogue has been dead in the water. This week, Bart De Wever’s federal government seized the opportunity and finalised a series of changes in the labour laws.

In the near future, companies will have more possibilities to rely on night work. It will also be less costly for an employer to have people working at night. Working part-time is made easier. Employers can hire people on a trial basis, making it easier to let go of those whose work is unsatisfactory. Dismissal costs for long-term employees are also lowered.

All sectors can, from now on, use the very advantageous flexi-jobs system, with no taxation and minimal social charges. Also for overtime, there are tax advantages under certain conditions. And finally, several administrative obligations are simplified.

The different employers’ organisations in Belgium are satisfied with the extra flexibility on the labour market. Trade unions protest. The measures this week come on top of a significant change in the unemployment benefits. Starting next year, long-term unemployed individuals will no longer receive allowances. Thousands of them are urgently looking for jobs these days.

Disadvantages

The federal government's measures are not surprising. For decades, Belgian experts and international organisations have pointed to the structural problems of the Belgian economy. Those problems weaken competitiveness: high labour costs, high taxes, high energy prices, protectionism, lobbying-driven lack of competition, and lack of flexibility.

The De Wever government was able to take a step towards greater flexibility this week. The government also tries to reduce taxes and costs. This is much more difficult. The government's financial problems (very high deficits and sovereign debt) make it impossible to reduce taxes meaningfully for many years to come.

Voka has to settle for a limited amount of happiness. And so does PM De Wever.

_{#FlandersNewsService | © BELGA PHOTO ERIC LALMAND}