Source: Clean Total
The combination of (temporary) additional surcharges on gross hourly wages in conjunction with the European Parliament's agreement in principle to substantially increase the minimum wage in the Netherlands will take a toll on the level of hourly rates in cleaning. What will the introduction of the European minimum hourly wage soon mean for the wage structure in cleaning?
It is not inconceivable that cleaners will choose to work at Schiphol en masse. This may cause a further increasing scarcity within other segments in the cleaning industry. This will then potentially create a snowball effect in terms of the level of hourly wages and/or fringe benefits. And a snowball can cause an avalanche. Moreover, what will be the consequence if a temporary allowance disappears again? After all, extra income gets used quickly.
Schiphol
Due to the handling problems at the airport in conjunction with the tight labour market, Schiphol has introduced a summer surcharge of €5.25 per hour for cleaners at its airport over the period 1 June 2022 to Monday 5 September 2022. Thereafter, a Schiphol Labour Market Surcharge of €1.40 per hour will apply from 5 September 2022. The latter supplement even applies until 1 September 2023. Also, commuting by public transport may not cost the cleaner any money. Apart from cleaners, the supplement also applies to security staff, escorts, baggage handlers and drivers. Furthermore, the summer allowance applies retroactively over the May holiday period. This will involve a total of EUR 40 to 50 million in additional costs.
Minimum wage
An agreement in principle was recently reached in the European Parliament to raise the minimum wage in all European member states at once. The starting point for setting the minimum wage is 50% of the average gross hourly wage in the country and 60% of the median wage. For the Netherlands, this implies an increase in the minimum hourly wage to €14.- Benefits should remain linked to this.
Advantage lost
The new cleaning collective agreement includes agreements to bring the hourly wage in cleaning to €14.00 in phases by April 2024. With this, the sector will soon lose its lead (120%) in terms of the hourly wage level compared to the minimum wage. The lowest step will now be €14. This will have consequences for the other wage scales. Since the agreement also stipulates that wage agreements must be reached collectively through the trade unions in each European country, requiring a coverage level of 80% (!), it promises to be very tough negotiations between workers' and employers' organisations later on.
CNV Vakmensen: discussions are also taking place in other places
Jan Kampherbeek, CNV Vakmensen director, certainly does not rule out that more companies will follow Schiphol's example: ”A similar discussion to Schiphol's is currently going on in other places. Since March, for instance, we have been trying to agree better travel costs for cleaners at recreational facilities. However, cleaning companies are still very reluctant to do so. Hopefully, the discussion at Schiphol will make them see that it is really necessary. So we still have some work to do. The surcharges at Schiphol naturally also apply to cleaners employed by cleaning companies hired by Schiphol. We are currently receiving signals that some cleaning companies within the Amsterdam region are not happy with the agreements, as they fear their staff will now want to work at Schiphol. However, we do say to our members that if you can get it better you should definitely do it!”
On the impact of the increase in the minimum hourly wage to €14, the union executive says: “I can't say much about that, because I don't expect the minimum hourly wages to be at €14 until the cleaning hourly wages are already this. Any effect would not be there until the next collective agreement.”
Cleaning Netherlands: market distortion is undesirable
The Schoonmakend Nederland spokesperson stressed that cleaning, like security, is among the indispensable professions: “ Work that deserves full appreciation, translated among other things into good pay a balanced secondary benefits package. For years, the cleaning industry has paid substantially more than the minimum wage (120%) and recently agreed in its new collective labour agreement to implement the hourly wage - advocated by the FNV and others - of 14 euros per hour by 2024.”
Schoonmakend Nederland is pleased to see that more and more clients recognise this indispensable work as such and are willing to pay for it. Or, like Schiphol, they are temporarily adding to it. However, it does warn against market distortion: ”With the emphasis on temporary because a structural form leads to disruption of the already tight (regional) labour market. That would be undesirable.”
Regarding the minimum wage increase, Schoonmakend Nederland does not want to get ahead of the music: “We do not want to anticipate things. The European agreement on the increase of the minimum hourly wage will take some time before this is legally regulated in the Netherlands. Besides, in our estimation it will never happen all at once, but gradually. We will of course continue to follow developments, also through our lobbying in political The Hague to keep the cleaning sector competitive compared to other sectors.”
In my opinion, the challenge will be the extent to which it proves possible to maintain the lead that the cleaning hourly wage has had for years over the minimum hourly wage and other sectors. After all, the relatively high hourly wage in cleaning versus, say, hourly wages within hospitality/retail sector has been a uniqe selling point for the cleaning industry for years.
FNV Cleaning: earlier to the collective agreement table not ruled out
Renate Bos, manager FNV Schoonmaak, is pleased with the result achieved at Schiphol: “The surcharges apply to all cleaners who clean at the airport on behalf of Schiphol, so naturally this includes the cleaners employed by the cleaning companies there. However, it does not apply to the (aircraft) cleaners at the Airlines, such as KLM, for example. These are in fact other clients. Incidentally, we are in talks with KLM to include, for example, KLM's lounges and other departments within the airport area under the agreements made with Schiphol.”
This implies, o.i., the risk of sowing some division among cleaners within the airport? Renate Bos: “Hm, division I wouldn't call it. Rather a motivation for the cleaners to switch to cleaning for client Schiphol and thus receive the extra allowances. I really hope this happens and also call on the cleaners to come and work for principal Schiphol in this area in particular.”
The rationale behind this call seems clear. The airlines will then have to follow Schiphol's example.
On the increase of the European minimum wage to €14.00, Renate Bos says: ”We have already achieved that the hourly wage of €14.00 is fixed in the cleaning collective agreement as of April 2024. As soon as it appears that the European minimum hourly wage will be introduced earlier than April 2024, the situation will have changed. Reason for us to then sit down at the table earlier than the expiry date of the CBA to adjust the effects on the wage structure within the cleaning CBA.”
Image over commitment
Let's be realistic. The substantial extra costs Schiphol is now incurring are not motivated by a social commitment to cleaning, among other things, but mainly to clean up the international image damage caused by the chaos. The measures are temporary, but if the problems do not resolve themselves, it remains to be seen to what extent this can be reversed later. With all its consequences on market forces. An important gain, however, is that Schiphol has learned that tendering on low price ultimately turns out to be expensive. The price is now being paid for that. Social requirements will therefore be imposed on bidders in future tenders. At least, that is what Schiphol's management promises.
English (UK)