AVV CLA Utrecht: Binding for Employers and Employees in the Region

General Binding Declaration of CLA in Utrecht

The general binding declaration (AVV) of a CLA obliges employers and employees in Utrecht and surrounding areas to comply with its terms, even without membership of a trade union or employers' organisation. This ensures fair play in local sectors such as construction and cleaning, preventing unfair competition around the Domstad.

Why the AVV is Crucial for People in Utrecht

In the Netherlands, CLAs generally apply only to members, but an AVV makes them binding for the entire sector. Without this mechanism, non-members in Utrecht could undercut with lower wages, leading to a 'race to the bottom'. With an AVV, all parties follow the same rules, protecting employees and promoting fair competition in the region. For basic information on CLAs, see our article on the collective labour agreement.

Legal Basis for AVV

The Collective Labour Agreements Act (WCAO) governs the AVV. Key provisions:

• Art. 3 WCAO: Minister of SZW grants AVV upon request from trade unions or employers' organisations.
• Art. 4 WCAO: Requirements such as at least two-thirds representation of employees in the sector.
• Art. 5 WCAO: Valid for max. one year, with option for extension.
• Art. 7 WCAO: Withdrawal upon CLA expiry or changed circumstances.

The minister verifies whether the CLA covers a broad scope of application, suitable for Utrecht sectors like construction or care.

Requirements for Granting AVV

The minister applies strict scrutiny:

• Sector-wide scope of application (art. 1(2) WCAO).
• At least two-thirds employee support via trade unions.
• No conflict with labour relations or public order.
• Proof of representativeness of the applicant.

If a requirement is missing, the application is rejected to prevent abuse.

AVV Application Procedure

Step-by-step:

1. Submission: To the Minister of SZW with CLA text and proof of representation.
2. Consultation and Input: Obtain SER advice and open a public consultation round for stakeholders.
3. Decision: Within three months, published in the Official Gazette.
4. Effective Date: Immediately for the duration of the CLA.

The process takes months; in 2023, many SME sectors in Utrecht received AVVs.

Standard CLA versus AVV CLA

Overview:

Utrecht Practice Examples

Example 1: Construction in Utrecht. The construction CLA with AVV forces non-affiliated contractors on Dom renovations to follow CLA rates, or face fines or claims.

Example 2: Cleaning in Utrecht. AVV regulates wages and shifts at offices and UMC; self-employed must adhere to minimums to prevent exploitation.

Example 3: Metal Sector around Utrecht. During COVID, AVV mandated flexible rosters for all metal companies, including non-members.

This effectively stabilises Utrecht sectors.

Rights and Obligations under AVV

Employee Rights:

• CLA benefits such as salary, leave and pension.
• Report to Netherlands Labour Authority; enforce via District Court of Utrecht.

Employer Obligations:

• Apply CLA in contracts.
• Maintain records for inspections.
• Fines up to €4,000 per case (Minimum Wage Act).

Trade unions monitor; disputes go to the sub-district court judge at District Court of Utrecht.

Tips for People in Utrecht

• Check AVV in your sector: Via SZW website, cao.nl or Utrecht Legal Aid Office.
• Become a member: Extra security despite AVV.
• Review your contract: Seek advice from Utrecht Legal Aid Office on AVV.
• Follow changes: Check Official Gazette or sign up for Municipality of Utrecht updates.
• Entrepreneurs: Factor in costs; consider joining an employers' organisation.