ABN AMRO has reached a new deal with its trade unions. The main points of the new agreement are the introduction of variable performance-based pay, which can account for up to 20% of a staff member’s salary, the surrender of a number of working conditions that are “no longer appropriate,” and agreements on better job-to-job guidance and assistance.
The deal covers nearly 27,000 bank employees in the Netherlands, from 1 June 2004 to 1 January 2006. During this period, there will be no changes regarding salary scales. “It’s a breakthrough,” says Jan Peter Schmittmann, ABN AMRO Netherlands CEO. “We expect the variable pay element to appeal to many employees. This is in line with the performance-based culture that we’re aiming for. Furthermore, the CLA will lead to a 10% saving on gross wage costs in due course, which will improve our competitive position.”
The new CLA improves job security for ABN AMRO employees at the bank’s Employablility Centre, through an agreement that Randstad Mobility Services can provide them with placement services after a period of six months. “The Employability Centre has helped hundreds of people to find new jobs in recent years,” says Schmittmann. ‘We expect the involvement of a external party such as Randstad to lead to a further substantial improvement in job opportunities.”