As explained in our Autumn 2013 Newsletter, Belgium is one of the last European countries where a discriminatory distinction has existed between blue and white collar workers.

The process for removing these distinctions began on January 1, 2014 but the employers' organizations and representatives are still anxious to see what the financial impact of this harmonization process will be, especially in sectors employing large numbers of blue collar workers, such as the textile and automotive industries. One of the main areas of concern is the treatment of occupational pension schemes and, in particular, the fact that premiums and contributions that are paid to the occupational pension schemes are substantially higher for white collar workers than for blue collar workers.

The Belgian Government has now developed draft legislation to tackle the discrimination against blue collar workers in occupational pension schemes. Given the financial impact, the harmonization process in this area will take 10 years, starting January 1, 2015. The draft legislation provides for a three-stage harmonization process as follows:

  1. The period prior to January 1, 2015:

    The legislation provides that no steps need to be taken to equalize the difference in treatment between blue and white collar workers, and employers will be protected from discrimination claims.
  2. The period between January 1, 2015 and January 1, 2025:

    This period will be the "stand-still period." The difference in treatment between blue collar and white collar workers will be permitted if the different treatment is provided for in pension plans that were in place prior to January 1, 2015. However, the difference in treatment cannot increase. Employers and employees will also be required to negotiate new agreements to eliminate the difference in treatment in the future.
  3. From January 1, 2025:

    January 1, 2025 will be the "cut-off date." As of that date, no further discrimination between blue collar and white collar workers within pension plans will be allowed. This means that all employees of a company will need to be affiliated to the same occupational pension plan and receive equivalent benefits. It will still be possible to distinguish different categories of workers but it will not be possible to base those distinctions on the blue collar or white collar status.

Employers are encouraged to analyze the financial impact of such harmonization for their company. This impact can then be used in future negotiations with the workers' representatives on the pension plans to be provided in the future.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.