Trade unions in the Netherlands have reacted furiously to Social Affairs Minister Piet Hein Donner's decision to end the part-time unemployment benefit scheme which enabled several manufacturing concerns to stay afloat during the present crisis.

Part-time unemployment benefit (WW) was introduced by the minister in March. Under the scheme, companies who could show that a drop in turnover by 30 percent or more was directly attributable to the credit crisis, were able to cut manning hours by 50 percent and then apply to the government for benefit. The difference in salary was made up from the special WW budget.

Minister Donner announced on Monday that the allocated budget of 375 million euros had been spent following a recent rise in applications. Many employers were applying for benefit on behalf of the bulk of their staff, while the scheme was meant to keep skilled workers employed, the minister said. Applications sent in before 23 June will be processed and Mr Donner will investigate other ways to help ailing manufacturers.

The FNV - which represents the interests of 17 trade unions - says the part-time dole scheme should act a showcase for other European countries. It is concerned about possible factory closures now that the scheme has been abolished.
 

Social Affairs Minister Piet Hein Donner by roel1943 (Flickr)