At least 24 million Europeans are going to earn a lot more in two years at the latest. Because then a European minimum wage will be introduced throughout the EU, at least if it is up to Agnes Jongerius and Dennis Radtke, the initiators of this proposal. What consequences does such a sharp increase mean for the cleaning sector in the Netherlands?
By Henk Cornelisse, Clean Totaal editorial board member
The minimum wage in 25 of Europe's 27 member states is going up, including in the Netherlands. The groups in the European Parliament of Christian and Social Democrats reached an agreement on the proposal by Agnes Jongerius (PvdA) and German colleague Dennis Radtke (EPP) and sent it to the rest of the European Parliament. In what way the minimum wage will go up through European legislation has not yet been announced. Which member states may not participate is also not known.
By comparison
The current minimum hourly wage is €9.72 (for 40-hour weeks) or €10.80 ( for 36-hour weeks). As far as the cleaning collective agreement is concerned, the hourly wage in wage group 1 (with 4 years of service) is €12.86, but with 0 years of service it is €11.27 (familiarisation wage). These amounts will be increased by 1.5% on 1 July 2021 on the basis of the current collective labour agreement.
European minimum wage a leap forward
The proposed increase to a minimum hourly wage of 14 euros presents both opportunities and threats. In the Netherlands, for example, over 2 million working people earn an hourly wage of less than 14 euros. This latter hourly wage is the level of the European poverty indicator. For employees earning the minimum wage, the increase implies a substantial financial leap forward. However, cleaners will also benefit substantially.
Does higher price mean higher workload?
The introduction of the European minimum wage offers the cleaning industry an opportunity to (partly) compensate for the loss of turnover due to less square metres to be cleaned through a substantial price adjustment.
But threat is also there. The economy has been hit hard by Covid-19. The question arises to what extent such a sharp price adjustment will result in an increase in square metre performance. In other words; will pricing soon predominantly call the shots again, throwing society's heroes back years in terms of workload? We asked the social partners.
Cleaning Netherlands predicts very tough challenge
According to Schoonmakend Nederland, the cleaning sector pays cleaners well and already well above the minimum wage. Cleaners start at 110 per cent and then progress in four steps to 125 per cent of the current minimum wage. “We have asked AWVN to benchmark how our wage structure compares with those in other, similar sectors, so that we have an even sharper understanding of our position.”
Cleaning Netherlands further points to the fact that a substantial increase in the minimum wage affects the entire BV Nederland. On employment, on the level of benefits, on the prices of products and (cleaning) services: “The discussion on raising the minimum wage should therefore also be conducted much more broadly than just at sector level, so that the consequences can be mapped out broadly. Brussels also has plans to introduce a minimum wage in Europe. This should mainly start to reflect what the prosperity is in a country. For the Netherlands, this would mean an increase of as much as 40 per cent - which far from all national political parties want. If this goes through, it will not be justifiable for our sector.”
The employers“ organisation notes that the inability to justify this is not only due to cost considerations - the costs of a cleaning contractor for 85% consist of labour costs - but also, and especially, to social considerations: ”As a leader in inclusive employment, our sector is strong in helping people find and keep jobs at the bottom of the labour market. With such a sharp increase in the minimum wage, we as a sector face a very difficult challenge to maintain our important and valuable social function."
SieV finds case too thin
SME employer organisation SieV chooses to refrain from substantive comment for now. Its chairman Maurice Rutgrink suffices with: “It is a trial balloon for the time being. Moreover, the case is too thin to respond to it adequately.”
But, governing is also a bit about looking ahead, isn't it?
CNV sees opportunities
Jan Kampherbeek, director at CNV Vakmensen, finds it - not unexpectedly - an excellent proposal. “The collective agreement is the only cartel agreement that can be made so everyone should pass it on. From the current wage as of June in pay scale 1 €13.01 is not too bad either. (7.5%).” In doing so, this union ignores the level of in-learning wages which makes the difference significantly wider? Kampherbeek: “This is indeed true. However, the income for the cleaner is the number of hours worked times the hourly wage. In my opinion, being able to work extra hours has more impact for cleaners. So don't just focus on an hourly wage of €14 but also look at the other income components.”
FNV Schoonmaak sides with SieV
Renate Bos, director of FNV Cleaning, despite several requests, refuses to comment on the development of a European minimum wage. Even an intervention from its spokesperson does not lead to a response. In doing so, it seems to endorse the position of SME employers' organisation SieV. Notable.
Politics: coalition colour is co-determining
To what extent the proposed European minimum wage will be a dark cloud or clear sky for the cleaning sector in our country, apart from European influences, seems to us to depend partly on the composition of the coalition. But if the minimum wage goes up, it will have a considerable impact on the cleaning industry, partly due to the introductory wage for new jobs.
English (UK)