Departement Handelswetenschappen en Bedrijfskunde Gegradueerde in Secretariaatsbeheer Optie secretariaat - talen
The Generation Pact in Belgium
CAMPUS Geel
Elodie Class
Academiejaar 2005-2006 De houder van dit diploma is gerechtigd tot het voeren van de titel van Bachelor
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Preface
I would like to thank my promoter Mrs. Ria Spruyt, who never hesitated to share her time and advice with me. I could not have wished for a better guide. I would also like to say a special thanks to the colleagues at my work placement Secretary Plus Management Support: My external promoter Mrs. Karen Vandenbohede, Office Manager at Secretary Plus Management Support, and my colleagues, Miss Tina Roes and Miss Liesbeth Ponet. They have done their outmost best to guide me through the process of writing my final paper and they have given me a lot of useful advice for my future career. I am forever grateful for the opportunities they have given me. Finally, I would like to thank my parents, my boyfriend and my future parents-in-law for their support and patience during this sometimes hectic period.
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Summary Belgium is renowned for its high-grade Social Security. The Social Security has offered people what they are always in pursuit for: security and certainty. The principle is simple: those who contribute receive something in return. However, during the last 50 years, many evolutions have taken place which threaten our Social Security. The government was forced to make alterations to the Social Security. Since The Generation Pact was presented to the public, this subject has been the hottest item in the press. It triggered many protests, because people are not prepared to give up the rights they have worked so hard for. During the writing of my dissertation, I was intrigued by the importance of the Social Security to us all. I kept in mind the arguments of all those involved and I noticed that the Generation Pact is not yet complete. There are a few blanks in the Pact: for some people it is not self-evident to come up to the conditions of the Pact. That is why I tried to find additional measures which could reinforce the Generation Pact. Combined with the Pact, they could guarantee a more solid Social Security. I do not think the Pact is wrong, on the contrary, I think it is a very good way to obtain a change in mentality towards our future. One thing is for certain: the government is heading in the right direction, but it has to keep searching for more creative ways to save the Social Security, because the Social Security is our future.
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Table of Contents Summary…………………………………………………………………………………… 3 List of Abbreviations…………………………………………………………………… 6 Introduction………………………………………………………………………………. 7 1
The Belgian Social Security System ..................................................... 8
1.1
Foundation of the Belgian Social Security system ....................................... 8
1.2
How does the Social Security System work? .............................................. 8
1.3
The actual Retirement System in Belgium ................................................. 9
1.4
Conclusion .......................................................................................... 10
2
Threats to the Social Security ............................................................ 11
2.1
First threat : the ageing of the population ............................................... 11
2.1.1
The Babyboom .................................................................................... 11
2.1.2
The increased life expectancy ................................................................ 12
2.2
Second threat : the imbalance between the working population and the inactive population............................................................................... 13
2.2.1
The decrease in the birth rate................................................................ 13
2.2.2
Early retirement .................................................................................. 13
2.3
Third threat: the globalisation of the economy ......................................... 14
2.3.1
The fierce competition from Asia ............................................................ 14
2.3.2
A new management strategy ................................................................. 15
2.4
The impact of demographic and industrial evolutions on the Social Security system ............................................................................................... 16
3
The Generation Pact .......................................................................... 17
3.1
Introduction ........................................................................................ 17
3.2
The purpose of the Generation Pact ........................................................ 17
3.3
First objective: create more work for the younger workforce ...................... 18
3.4
Second objective: stimulate older employees to work longer ...................... 19
3.4.1
Early retirements ................................................................................. 20
3.5
Conclusion .......................................................................................... 21
4
The parties involved in the Generation Pact ...................................... 23
4.1
The employees’ representatives ............................................................. 23
4.2
The Employers’ representatives ............................................................. 25
4.3
The government .................................................................................. 25
4.4
Conclusion .......................................................................................... 27
5 5
Alternatives to the Generation Pact ................................................... 28
5.1
Increase the revenues for the Social Security........................................... 28
5.1.1
Teleworking ........................................................................................ 28
5.1.2
Service Cheques .................................................................................. 30
5.1.3
Reduce the unemployment benefits ........................................................ 30
5.1.4
GSC (General Social Contribution).......................................................... 31
5.2
Reduce the expenditures of the Social Security ........................................ 32
5.2.1
Retirement insurances .......................................................................... 32
5.2.2
Reduce the expenditures for the health care ............................................ 32
5.2.3
Conclusion .......................................................................................... 34 Conclusion…………………………………………………………………………………35 Bibliography………………………………………………………………………………36
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List of Abbreviations Chapter 1 OCMW RSZ RVP RVA FAO FBZ RKW RIZIV RJV NAR
Openbaar Centrum voor Maatschappelijk Welzijn Rijksdienst voor Sociale Zekerheid Rijksdienst Voor Pensioenen Rijksdienst voor Arbeidsvoorziening Fonds voor Arbeidsongevallen Fonds voor Beroepsziekten Rijksdienst voor Kinderbijslag voor Werknemers Rijksdienst voor ziekte en invaliditeitsverzekering Rijksdienst voor Jaarlijkse Vakantie Nationale Arbeidsraad
Chapter 2 RIVM EU WTO LLL e.g.
Rijksinstituut voor Volksgezondheid en Milieu European Union World Trade Organisation Life Long Learning exempli gratia – for instance, for example
Chapter 3 OESO ACLVB Voka HR
Organisatie voor Economische Samenwerking en Ontwikkeling Algemene centrale der Liberale Vakbonden van België Vlaamse Ondernemingen, Kamer van Koophandel Human Resources
Chapter 4 ABVV ACV SP.a VBO Unizo VRT SP VLD
Algemeen Belgisch Vakverbond Algemeen Christelijk Vakverbond Socialistische Partij Anders Belgisch Verbond van Belgische Ondernemingen Unie van Zelfstandige Ondernemers Vlaamse Radio en Televisie Socialistische Partij Vlaamse Liberalen en Democraten
Chapter 5 VDAB FOREM BGDA GSC BBTK
Vlaamse Dienst voor Arbeidsbemiddeling en Beroepsopleiding Office Communautaire et Régional de la Formation professionnelle et de l'Emploi Brusselse Gewestelijke Dienst voor Arbeidsbemiddeling General Social Contribution Bond der Bedienden, Technici en Kaderleden
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Introduction
Belgium has the most envied Social Security of the world. It is a very elaborate and complex system which functions as an insurance; all Belgian citizens contribute to it and in return they have the assurance that they have access to a minimum income in times of need. The Social Security is based on the central thought of solidarity: If you contribute, you get security in return. There are, however, always people who are willing to receive, but who are reluctant to contribute. Due to the latest economical and demographical evolutions, the efficiency of this system is threatened. The Social Security is getting more expensive with each year that passes by. Adjustments are necessary if we are to benefit from our Social Security in future. With the introduction of the Generation Pact, a document which contains a series of measures to ensure the future of the Social Security, I realised just how many people rely on this system. The Generation Pact has provoked a lot of protest amongst the working population. This is because people tend to take the Social Security for granted. I found it very interesting to see how people reacted to the measures proposed in the Generation Pact, especially the section where the legal age of early retirement was raised. People see it as their right to benefit from a well-earned retirement after a long career. Also the content of the Generation Pact is questioned. Employees’ representatives argue that the Pact is incomplete, unfair and that it has forgotten many people. I will discuss this matter more extensively later on. Having considered the points of view from all parties involved in this issue, I have tried to find some other measures which could complete the Pact. These are mostly measures which provide for alternative financing of the Social Security or for the creation of more jobs. I have chosen this subject because it is a very actual and controversial subject which concerns our future and that of our children. I have taken this subject very seriously and I have tried to consider the opinion of all people involved in the Generation Pact. It is a very interesting subject which is closely linked to many other actual subjects like for example the ageing of the population, globalisation, etc. The Generation Pact is about our future. It is thus a very interesting and controversial subject which is food for thought. But before jumping to conclusions, it is very worthwhile to see the subject from all angles.
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34 There is an excessive consumption of certain antibiotics, namely antidepressants. The consumption of antidepressants has increased from 105 million doses in 1997 to 181 million in 2004. This is why the Minister of Social Affairs, Rudi Demotte (PS) wants to reduce the refunds on certain medicines. He also wants to launch a campaign to make physicians and pharmacists become more aware of their prescription behaviour. He hopes to be able to save €10 million for the health care. (Het Nieuwsblad, 10 February 2005) The general purpose here is to “break” the power of the pharmaceutical industry and lower the prices for medication.
5.2.3 Conclusion The Generation Pact is a good way to cause a change in mentality regarding the Social Security. People have to realise that the social security in its previous form is no longer sufficient. Some changes are necessary. A different attitude towards our future is even more necessary. Personally, I think the Generation Pact is a good initiative, but the measures are too ‘soft’. The Pact is a good forerunner of the changes that are to come, but it needs to be backed up by other alternatives. The government is very creative in finding ways to cut costs and other incomes for the Social Security. These measures have already been introduced but they are not mentioned in the Generation Pact. The Generation Pact is a good step in the right direction, but it will have to be perfectioned to obtain the necessary results.
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Conclusion My dissertation has revealed that the Social Security, and more specifically the retirement system which is in force today has become inefficient and insufficient. Due to all the evolutions which have taken place in the last lustrum, the Social Security has become too expensive. The main problem is that there are too many expenses and too little revenues for the Social Security. It is clear that changes need to be carried through to make this system function well in future years. This is why the Generation Pact was introduced. It contains a series of measures which aim to make the Social Security affordable again. The main objective of the Pact is to eventually stimulate the Belgian economy. To achieve this, people need to work longer and companies have to invest more in Research and Development. In order to achieve this, we need a change in mentality. The Generation Pact is a sort of wake-up call which introduces a new era and a new approach to our Social Security. All parties involved have very good arguments about the Pact. The concern amongst the employees is that the Pact is unfair. It punishes the people who work and contribute, while there are many people who are unemployed and who misuse our solidarity. It is also incomplete: women for example are forgotten by the Pact because they are not always able to come up to the required conditions for early retirement. The employers are very optimistic about the Generation Pact. Since they suffer from a fierce competition from China, it is very difficult for them to combine low prices with high social costs and still make enough profit. So the Generation Pact is very welcome for them. The fact is that we cannot do without the Generation Pact. It is a very good campaign to announce future changes for the Social Security. It will cause a change in mentality, but the measures taken are not sufficient yet. There are many alternatives which could complete and perfection the Pact. Their main purpose is to create more employment, to reduce the expenses of the Social Security and to find alternatives to finance the Social Security. The Generation Pact will always be a controversial subject and since all parties have opposite interests it will be difficult to find a solution which is beneficial for everyone. In my opinion, the government is heading in the right direction, and surely needs to pursue its search for other alternatives.
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Bibliography Found on the Internet: Online services for the Social Security: Found: 1 March 2006: https://www.socialsecurity.be/site_nl/socialsecurity/Infos/general/allyouwanttoknow_N .pdf Vedior Interim: Vedior Senior Careers, 13 May 2006. Found: 13 April 2006: http://www.vedior.be/nl/werkgv/NewsItems__detail.aspx?id=49, RVP (Rijksdienst voor Pensioenen): www.onprvp.fgov.be Brussels Agentschap voor de Onderneming: Found: 8 April 2006: http://www.ecosubsibru.be/index.cfm?fuseaction=aides.aides_one&aide_id=182&langu age=NL Vacature.com: Found on: 22 March 2006 http://www.vacature.com/scripts/indexpage.asp?headingID=26509 Official website of the Federal Government: belgium.be. Het Generatiepact, found on 11 March 2006: http://www.belgium.be/eportal/ShowDoc/kabinet_egov/imported_content/pdf/generati epact.pdf?contentHome=entapp.BEA_personalization.eGovWebCacheDocumentManager .nl ACLVB: Solidariteitscontract tussen generaties, 11 October 2005 http://www.aclvb.be/content/media/pdf/synthesenota_generatiepact_eindeloopbaan_4 _03.pdf NAR (Nationale Arbeidsraad) Found: 14 April 2006 http://www.vonk.org/CallReadOnly.asp?artikelID=1374&status=2 Vlaams Economisch Verbond: Ouderen aan de haard? Found: 3 March 2006: http://www.voka.be/tekst.asp?ID=1478&Rel=vergrijzing World Trade Organisation: WTO successfully concludes negotiations on China's entry, 17 September 2001 Found: 25 May 2006: http://www.wto.org/english/news_e/pres01_e/pr243_e.htm Groen!: Loopbaan geen Sloopbaan, 12 November 2005 Found: 17 May 2006: http://www.loopbaangeensloopbaan.be/Ewerkforum: found on 11 May 2006 on the Internet: http://www.telewerkforum.nl/faq/vgv8.html RIVM (Rijksinstituut voor Volksgezondheid en Milieu): www.rivm.nl "Minister Vanvelthoven voert pleidooi voor een vrijwaring van het succesverhaal van de dienstencheques", 3 May 2006, http://www.petervanvelthoven.be/article.php?id=330 Wetenschappelijk Instituut voor Volksgezondheid, Reports 2002, 25 Socialistische Mutualiteit, 2004: Begeleidende maatregelen opdat patiënt niet de rekening betaalt. Found on: http://www.socmut.be/e-
37 Mut/Socmut/300/Infos/YourHealth/Publicaties/Flits/Flits+mei+2005/Stijging+uitgaven +geneesmiddelensector.htm Het Generatiepact… nuttig om weten, 9 January 2006. Found: http://www.bartsomers.be/actueel.php?item=102, Official Site of the Prime Minister: Het Generatiepact, 11 October 2005. Found:14 May 2006, http://premier.fgov.be/nl/051011_generatiepact.pdf Accor services, Found: 23 May 2006, http://www.dienstencheques.be/nl/pages/avantage_fiscal.asp?ru=2 Accor Services, Evaluatierapport van de diestencheques, May 2006: http://www.dienstencheques.be/nl/pages/modif.asp?ru=1 OESO: Education at a glance, 2004: Found: 24 May 2006: http://www.oecd.org/dataoecd/56/55/33716877.pdf FOD: Het Belgisch Werkgelegenheidsbeleid, found: 16 May 2006 http://www.meta.fgov.be/pa/paa/framesetnlce00.htm, ABVV: Uw eindeloopbaan, April 2006. Found: 23 May 2006:
http://www.abvv.be/code/nl/fram015.htm ABVV Vlaams Brabant: found: http://www.abvvvlaamsbrabant.be/benjev/artikel.asp?pid=4016&artikel=2529&rubriek=1 Ronny Lannoo, UNIZO over beslissing vakbonden over nieuwe acties tegen generatiepact, 18 October 2005: http://www.unizo.be/viewobj.jsp?id=145432 E-gezondheid, 2 May 2005, http://www.e-gezondheid.be/nl/gezondheid_tijdschrift/gezondheid_obesitas/Inleiding12791-1008-art.htm
Statistical Links: Voorontwerp Generatiepact, SD Worx, 1 December 2005: http://www.sdworx.be/generatiepact: 28 April 2006 Voorontwerp Generatiepact, SD Worx, 27 December 2005: https://www.sd.be/site/website/be/nl/6000c/60400c/60480c/60481c/10000p_051227_ 03 Het glazen plafond voor vrouwen bestaat! SD Worx, 14 June 2006 http://www.sd.be/site/website/be/nl/1000c/10700c/10000p_050614 Statistics Belgium: Found on the Internet on 27 March 2006 http://www.statbel.fgov.be/figures/d23_nl.asp#1 ING: Jeroen Lamoot, Finaciële berichten: Loont migratie economisch?, Nov-Dec 2004 Found on 20 May 2006 on the Internet: http://mineco.fgov.be/informations/statistics/studies/thesis_nl.asp?q=01
Found in Newspapers/magazines/media: ABVV: Uw eindeloopbaan: Wat verandert er door het Generatiepact, April 2006)
38 Ria Malisse, Personeelsbeleid, 2005-2006, 21) Ria Malisse, Personeelsbeleid 2005-2006, 84,86,87) Janine Meijer, De Morgen:, 8 October 2005 Sybille Decoo, Nationale staking en betoging op 28 oktober, De Morgen, 20
October 2005 Nationale staking duwt Vlaams Belang in spagaathouding, De Morgen, 25 October 2005, p.3 Els Van Hoof, Generatiepact is niet vrouwelijk, Het Nieuwsblad, 6 December 2006 ACV ontevreden met overleg generatiepact, Het Nieuwsblad, 2 March 2006 Ministerraad keurt aanpassingen aan Generatiepact goed, Het Nieuwsblad, 18 November 2005 Belg werkt graag zwart, Het Nieuwsblad, 20 December 2006 E-cheque voor poetshulp op komst, Het Nieuwsblad, 12 May 2006 Dienstencheques niet te betalen, Het Nieuwsblad, 8 March 2006 Goedkoopste medicijn wordt meest terugbetaald, Het Nieuwsblad, 29 April 2006 Joost Loncin: Pil tegen depressie wordt duurder, Het Nieuwsblad, 10 February 2005 Brugpensioen maakt werkloos, De Standaard, 19 October 2006 ABVV vraagt inspanningen van de bedrijven, Het Laatste Nieuws, 30 April 2006 Rerum Novarum: Cortebeeck haalt uit naar riante toplonen, Gazet Van Antwerpen, 24 May 2OO6 Pensioensparen in de lift, Het Volk, 3 December 2005 Pensioensparen: Fiscaal voordeel flink omhoog, De Tijd, 3 April 2006 Jaarverslag RIZIV: "Belg kost ziekteverzekering gemiddeld 1.384 euro", De Tijd, 29 June 2004: http://aps.vlaanderen.be/statistiek/nieuws/gezondheid/2004-06_riziv.htm Guido Muelenaer, Het Koldermodel Van Verhofstadtt, Trends 13 October 2005 Metaalarbeiders op straat tegen generatiepact, Indymedia. 16 November 2005. Found: 19 May 2006: http://www.aclvb.be/content/media/pdf/synthesenota_generatiepact_eindeloopbaan_4 _03.pdf, Afwijzing door de bonden is kortzichtig, VRT Nieuws, 24 November 2006 http://www.vrtnieuws.net/nieuwsnet_master/versie2/nieuws/details/051124Werkgever s/index.shtml Acties zijn voorlopig louter informatief, VRT nieuws, 22 November 2005 http://www.vrtnieuws.be/nieuwsnet_master/versie2/nieuws/details/051122Vakbondce ntrales/index.shtml We moeten het hoofd koel houden, VRT Nieuws, 31 October 2005
39 http://www.vrtnieuws.net/nieuwsnet_master/versie2/nieuws/details/051031VandeLano tteABVV/index.shtml Claes wil nog méér dan Generatiepact, VRT Nieuws, 3 November 2005 http://www.vrtnieuws.net/nieuwsnet_master/versie2/nieuws/details/051103ClaesGene ratiepact/index.shtml Human Resources Magazine. Edition: January 2006, Opstaan voor 50-plussers Monthly magazine of the BBTK, Expresso, edition April 2005: http://www.bbtk.org/img/nl/db/Setca_Expresso-8pNL.pdf Presscenter.org, Bevordering van innovatie en wetenschappelijk onderzoek, 22 March 2006. Found: 27 May 2006: http://presscenter.org/archive/20060322/8e5b0b5459d10690506fbe304c2c57f8/?lang =nl Human Resources Magazine. Edition: April 2006
