Belgium is one of the last European countries where a
distinction is made between blue and white collar workers. Blue
collar workers are generally considered employees who provide
manual labor, whereas white collar workers are generally considered
employees who provide intellectual labor.
This distinction is evident in the working conditions, the method
of payment of salary, notice periods (which are much shorter for
blue than white collar workers) and the benefits provided to blue
and white collar workers.
In 2011, the Belgian Constitutional Court held that this
distinction was discriminatory and gave the Belgian Government
until July 8, 2013 to eliminate such discrimination.
In Belgium, labor and employment issues are generally first
decided by the so-called "Group of 10", which is composed
of employer and employee representatives. Despite months of
negotiations, no consensus could be found by the Group of 10 on how
the discrimination could be removed. Consequently, this matter has
been taken over by the Ministry of Employment which, together with
the Group of 10, reached a compromise on July 5, 2013.
The compromise states that two of the most important areas of
discrimination will be removed by January 1, 2014. These are the
following:
1. Notice periods: Notice periods will be
harmonized by substantially increasing those of blue collar workers
and reducing those of white collar workers. Termination of
employment would now have to be for a fair reason, and outplacement
would be due in most cases.
2. The first day of incapacity: In the past,
the first day of absence due to illness was not paid to blue collar
workers. This would now be paid as of January 1, 2014.
Even if these compromises are a positive sign, there are a number
of areas where no agreement has yet been reached (for example, in
relation to the method of payment of salaries, holiday pay and
Social Security contributions).
The employers' organizations and representatives are quite
anxious to see what the financial impact of this harmonization
process will be, especially in sectors employing large numbers of
blue collar workers, such as the textile and automotive industries.
One of the main areas of concern is the treatment of occupational
pension schemes. Blue collar workers are traditionally mostly
affiliated to pension schemes set up by the relevant industry body,
whereas employers of white collar workers usually set up their own
pension funds or enter into contracts with insurance companies to
provide a pension scheme. The premiums and contributions that are
paid to the occupational pension schemes are substantially higher
for white collar workers than for blue collar workers.
Consequently, employers' organizations and representatives are
waiting to see what decisions will be taken in this area and how
harmonization will be achieved.
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