Denmark - Pay formula could lead to salary cut - August 26, 2009

The FOA public services trade union is concerned that salaries in the municipal sector could be reduced as a result of the mechanism in the collective agreement that links public sector pay rises to those in the private sector. On current trends it is possible that pay could be cut by 1%.

Dennis Kristensen, president of the FOA, suggested that there could be a compromise solution that allows the social partners to abide by the agreement but defer any potential cuts to see how salaries develop. He underlined the fact that a 1% pay cut would not help councils recruit and retain skilled and experienced staff.

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