ABN AMRO and trade unions reach negotiated result for a new CLA and social plan

Press release -

Last night the parties reached a negotiated result for a new social plan and a new collective labour agreement (CLA) for 2020 and 2021, as well as a new pension plan for the years 2020 to 2024. The most relevant results are set out below.

Salary increase twice at 2.75%

The bank and the trade unions agreed to raise salaries twice, by 2.75% each time: first on 1 April 2020 and again on 1 April 2021. This way, the bank is addressing the public demand for higher wages. In 2019, the average increase of contract wages under collective labour agreements in the Netherlands was 2.75%.

5 weeks of vacation

In addition to the salary increase, the banks and the trade unions also agreed to increase the number of vacation weeks from 4 to 5 per year starting in 2020. A survey held among the bank’s employees earlier this year revealed that employees highly value vacation days. By increasing their vacation days, the bank wants to offer its employees better work/life balance.

6 weeks of paid birth leave for partners

Partners will get more time to enjoy their newborn child together. As from 2020, partners will get 6 weeks instead of 2 weeks of leave on full pay.

New pension plan

The bank is facing huge challenges in its efforts to stay future-proof. Ongoing low interest rates are putting margins under pressure, so costs need to be controlled. In this context, the terms of a new pension plan were agreed upon. To keep pension costs predictable, the bank will cease to pay a variable pension contribution as from 2020, but will instead pay a fixed contribution of 37% of pensionable earnings. The bank will also contribute a one-time additional 4% into a contribution reserve as at 1 January 2020.

‘Banking for better’ days

ABN AMRO wants to give all employees more scope to bring to life its purpose Banking for better, for generations to come. That’s why, starting in 2020, all of its employees will be allowed to spend one week per year working on their personal development or taking part in social projects at their own discretion. These ‘Banking for better’ days replace the bank’s ‘former’ leave schemes for studies and volunteer work.

From negotiated result to a CLA

The trade unions will submit the negotiated result to their members this month and request them to respond by 26 September. Meanwhile, ABN AMRO’s pension fund will assess whether administration of the new pension plan will be feasible for the pension fund. If the trade union members vote in favour and the pension fund is able to execute the pension plan, the social plan, the new collective labour agreement and the new pension plan will take effect on 1 January 2020.

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