Enough is enough. The service vouchers sector is experiencing serious problems

February 7, 2024 by
BECI Community

The employers of housekeepers, the service voucher companies, are sounding the alarm ahead of the union action on 7 February. Although the unions are directly targeting service voucher companies, employers are joining housekeepers in their legitimate demand for a proper and viable framework for service vouchers. The Federgon trade federation is calling on political decision-makers and trade unions to work together to find a sustainable model for the sector. Housekeepers give 100% of their time and energy every day, add significant value to society and therefore deserve a sustainable future. That future is sorely lacking today because of structural funding problems and an increasingly complex regulatory framework. The situation is critical. If nothing is done, the sector will be on the brink of implosion.

 

The service voucher ecosystem is a victim of its own success. Workers and employers are fighting for the survival of a sector where structural reforms are necessary but are not being implemented. Federgon is calling on politicians to take urgent action. The companies in the service voucher sector are reaching out to the political leaders and trade unions concerned to return to the path of dialogue and work together to find a lasting solution. The continuation of a correct and respectful service voucher system is in the mutual interest of employees and employers and is of real social and economic importance. The long-term future of the sector should therefore be everyone's priority.


The service voucher sector, a (failing) driving force for the Belgian economy

The service voucher system is a driving force for the Belgian economy in more ways than one. The system has created 150,000 jobs for housekeepers, giving them full social status and the protection they need in the workplace. Today, more than 1.2 million Belgian households have a housekeeper and use service vouchers. The system then helps these customers to achieve a better work-life balance. As a result, the employment rate of these households has risen considerably: the time taken to return to work represents almost 14,000 additional full-time jobs for our economy, which is cruelly short of labour.

‘The service voucher system is a highly successful measure that far exceeds its objectives. We have every interest in consolidating this success and, if possible, strengthening it further. We see it as the duty of all stakeholders to get involved and roll up their sleeves. That's the message we want to get across today,’ says Ann Cattelain, CEO of Federgon.

 

The service voucher system is threatened by funding problems and a complex regulatory framework

Due to structural funding problems that have been building up for years, the service voucher sector now has its back to the wall. The increase in costs due to wage indexation (up 14.7% on the pre-Covid period) is not sufficiently offset by the contribution received by employers. This makes being a good employer more difficult every day. As employers, our ambition is to be able to pay our housekeepers better and invest more in their care and support. But the financial situation of service voucher companies makes this difficult. It's not true that the sector is still generating large profits. If we look at the annual accounts of the 25 largest service voucher companies, we see that they generate a profit margin of barely half a per cent. On sales of €1.073 billion, the profit was €5.8 million. An analysis by Graydon Credit Safe even showed at the end of 2023 that 37.29% of companies were making a loss.


Added to this is the increasing complexity of the regulatory framework resulting from the different levels of government. Service vouchers straddle the federal and regional levels, generating a flood of additional rules. Better coordination between these levels would be desirable. What's more, the rules between the various regions are increasingly divergent, making the situation unmanageable for service voucher companies.

 

Constructive dialogue is essential to secure the future of housekeepers

In the run-up to the union action by housekeepers on 7 February, the employers are calling for collaboration with the unions to achieve structural reform and better compensation for the system. The employers want to join forces with the unions to guarantee the future of service vouchers. The interests are similar, and it is crucial to work together for a sustainable and viable sector.

‘By joining forces, our voice in favour of structural change will be stronger. A sustainable and forward-looking framework for the service voucher sector would benefit us all. This concerns 150,000 housekeepers, more than 1.2 million users, 1,429 approved companies and our federal and regional authorities’, according to Ann Cattelain, CEO of Federgon.

Collective Labour Agreement (CLA): dotting the i's and crossing the t's

The recent denunciation of the collective labour agreement (CLA) on social benefits, often criticised but misinterpreted, deserves some further clarification. Contrary to what the unions have repeatedly asserted, end-of-year bonuses for housekeepers are indeed guaranteed and will continue to be paid in future. In fact, the unchanged CLA on end-of-year bonuses is now before the unions for signature.

The denunciation of the CLA concerned only the union bonus, which is granted in all sectors in the event of social peace. The service vouchers sector is practically the only sector where this union bonus is guaranteed by a CLA for an indefinite period, whereas it should normally be negotiated and granted every two years depending on the social climate in the sector. A draft CLA on the union bonus, in line with the practice in other sectors, is ready for discussion today. It concerns the terms and conditions and formalities of the bonus, and in no way calls into question the union bonus as such.

BECI Community February 7, 2024
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