Wage increases agreed upon in new collective labor agreements (CAOs) in the first half of 2025 averaged 4.1%, a figure the FNV trade union federation deems insufficient to restore workers’ purchasing power. The FNV, which released these figures as part of its evaluation of the CAO season, is advocating for a 7% across-the-board pay rise.

The union asserts that many workers have not been adequately compensated for the substantial inflation experienced in recent years. FNV’s employment policy coordinator, Petra Bolster, stated that employers are not yet willing to pay workers their fair share, emphasizing the need for a 7% increase, with approximately 4% required just to offset past inflation.

Bolster highlighted the healthy profits of numerous companies and the strong state of government finances, suggesting ample capacity for further wage growth. She stressed the importance of compensating individuals for sacrifices made over the past three years, requiring more than the current 4.1% increase.

May’s inflation rate stood at 3.3%, exceeding the Eurozone average. Food, drink, and tobacco prices were over 7% higher compared to the previous year, while service prices saw an increase of nearly 4%.

The employers’ organization AWVN countered that wage decisions should be based on the financial capabilities of individual companies and sectors. They noted that many businesses, especially in manufacturing, continue to face elevated labor costs.

Negotiations between unions and employers remain stalled in several sectors, including the railways, where NS workers have conducted multiple strikes. The FNV is involved in 709 of the 818 CAOs in the Netherlands, representing approximately 5.7 million workers. Thus far this season, the union has signed 157 agreements, impacting 2.1 million individuals. The average CAO duration is one and a half years.

Bolster concluded by asserting that only union members have successfully secured pay rises, enabling people in the Netherlands to manage despite inflation, despite political discourse surrounding income security.