Belgium: Disagreements arise over the national wage bargaining system

In 1996, the parliament introduced a “Wage Norm Act”, which establishes a strict procedure for the Belgian social partners to negotiate a maximum average wage increase for the next two years. This “wage norm” is used to limit the increase of wages in order to remain competitive with neighbouring countries. If the negotiations between the social partners fail, ultimately the government itself can lay down a wage norm. The Wage Norm Act was not without shortfalls, especially the enforcement of the wage norm, which turned out to be difficult, as sectoral and company collective bargain agreements would regularly set forth higher wage norms.
On the insistence of the EU, the government of Michel I managed to amend the Wage Norm Act in 2017. It improved the enforceability of the wage norm, but also changed the negotiation procedure. From 2017 onwards, the Central Economic Council must first calculate the maximum possible percentage for wage increases, and this figure is binding for the negotiations afterwards. During the negotiations of the wage norm for 2017 and 2018 the trade unions accepted this procedure, as for the first time since long (because of the crisis) there was some room for wage increases. However, the trade unions were displeased with the maximum possible wage norm of 0,8% for 2019-2020, which was calculated by the Central Economic Council, as they considered this too low in a relatively booming economy.
The Employer organisations disagree with the view of the trade unions, as next to the wage increase of the wage norm, there is also a wage indexation, which is estimated to be 3,4 %. Therefore, the actual possible wage increase will be 4,2% instead of 0,8%. Moreover, some point out that the trade unions are also represented in the Central Economic Council, so their complaints are too late.
In any case, the trade unions feel that their freedom to collective bargaining is restricted, and they made this clear to the government with national collective actions which paralysed the public transport and big companies, and closed down the Belgian airspace, resulting in vast economic damages. It is possible, but not certain, that the government will take their concerns to heart and ignore, or even amend, the Wage Norm Act. How this will be possible for a government of current affairs is another question.