Unrest among employees with heavy occupations now that early retirement scheme is ending | Economy

Employers no longer see any benefit from the scheme due to the tightness on the labor market, while employees want a permanent and comprehensive scheme. Moreover, it is still very difficult to determine the definition of a difficult profession. Does this only apply to construction workers, machinists and police officers or also to teachers and office workers?

According to employers’ association AWVN, much more effort must be made to ensure the sustainable employability of employees. “We have to look at how someone can reach retirement age in a healthy way. There are billions available for retraining, so it is up to employers and employees to see what is possible if the profession becomes too difficult,” said a spokesperson.

The agreements on early retirement were made in 2019 and since then there has been a lot of discussion about which professions fall into the ‘heavy’ category. “It is an agreement from the Pension Agreement and it is remarkable that certain goals have not been achieved,” says Hans van Meerten, professor of European pension law at Utrecht University.

At the end of 2022, only fifteen thousand of the hundreds of thousands of employees made use of the scheme, according to figures from the UWV. Agreements regarding this scheme have now been included in three hundred collective labor agreements.

The Early Retirement Scheme (RVU) is intended for employees who have a demanding job and are unable to work healthily until retirement age due to the increase in the state pension age. This condition is already set in two out of three collective labor agreements to be able to use the scheme.

The employer then pays out a monthly or one-off amount to bridge the period from retirement to the state pension age. Three quarters of the collective labor agreements impose a condition for making use of the scheme: the employee must have worked for a minimum number of years in the company or sector. That number ranges from 5 to 25 years, with an average of 18 years of service.

The unions are now targeting outgoing minister Carola Schouten (Pensions). Workers in various sectors including police officers, railway workers, metal workers, construction workers and cleaners have already taken action.

According to Piet Rietman, treasurer at the FNV trade union and responsible for the pension file, the collective labor agreement tables must determine what a difficult profession is. “We also want the scheme to be expanded so that it becomes possible for more people to retire early.”

It is disappointing how many employees actually make use of the scheme. This has to do with the amount that early leavers receive. “Employees in cleaning or healthcare in particular have a lower income or work part-time. This means little savings and a smaller pension pot. This makes it difficult to bridge those three years.”

The FNV therefore wants a permanent scheme from 2026 that provides a higher benefit. The union has now issued an ultimatum to the minister. For example, police unions are threatening tougher action if no solution is found for a permanent early retirement scheme. Rietman says that there will be strikes in several sectors.

Outgoing Minister Schouten has already indicated that he wants to talk to the unions quickly.