Bpf BOUW Relies on Massive Wage Inflation To Avert Funding Crisis
16 October 2012 (PLANSPONSOREurope.com) – The Dutch construction workers scheme bpf BOUW has been reliant on massive wage inflation to stave off a funding crisis, it has admitted
Widescale redundancies have seen the multi-employer plan lose 40,000 active members in the last five years.
Meanwhile figures from the Dutch Central Bureau of Statistics – recorded more than 1,000 insolvencies in the first six months of this year, almost as many as in the whole of 2011 – suggest the membership is likely to continue shrinking.
But David Van As, director at bpf BOUW told PLANSPONSOR Europe this has not resulted in diminished contributions, as wages have risen 18% in the sector over the same period.
However, he also admitted future wage inflation could not be predicted and this loss of contributing members could become a problem next year.
He also claimed ongoing negotiations with a number of construction firms not currently in bpf BOUW could help drive active membership up in future.