Belgium’s unions and employers are holding all-day talks on Thursday on reforming two key pillars of the country’s wage-setting system: the wage norm law and automatic wage indexation.
The government has asked the social partners, represented in the Group of Ten, to deliver an opinion on the issue. Negotiations have been under way since the start of the summer.
The aim of the talks is to build more flexibility into the system while safeguarding companies’ competitiveness and workers’ purchasing power.
However, whether the talks will produce a deal on Thursday remains uncertain. “The willingness is there,” negotiators said, but time is pressing.
To avoid government intervention disrupting the talks, unions and employers want to reach an agreement before a budget deal is struck.
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At the centre of the negotiations is the wage norm law, which is designed to ensure wages do not rise faster than those in neighbouring countries.
The other key issue is automatic indexation, which guarantees that workers’ pay rises in line with the cost of living.
Both systems are under strain, as shown by the lack of any significant wage agreements in recent years.
