Recently DKVA entered into a master agreement with the Dutch employers’ organization of the non-profit welfare (Maatschappelijke Ondernemers Groep: MO-groep) which is the single employers’ organization for this sector. This means that we are a preferred supplier and know what is going on in the field. Members of this organization enthusiastically refer each other to DKVA.
Since 2010 economic budget cuts and changes in the law of the Dutch Social Support Act (Wet Maatschappelijke Ondersteuning: Wmo) have forced this sector to decide on a different strategy. ‘Welfare New Style’ is no longer dictated by supply, but by demand. In other words: formerly the municipality took the initiative, today it is the citizen that does so at neighbourhood level. Welfare organisations support these citizens in their initiative(s). Moreover, the municipality now sends out open invitations to tender, rather than giving companies a subsidy after application. This means that companies first have to win a tender, before they know whether they get the job and subsidy to finance it, on which they so much depend. Moreover nowadays municipality divides its available subsidy over a larger number of organizations, and the subsidies have become far more project based and as a result hereof shorter in term. This results in a reduced chance of getting the assignment in the first place.
This change caused a substantial loss of jobs for non-profit welfare organisations. Expert personnel were made redundant as a result of economic circumstances, or had to change employers, due to a transfer of undertakings. Redundancy pay schemes agreed on in more prosperous times had to be renegotiated with the unions, a necessity in order to avoid the complete bankruptcy of organizations.
Over the past few years De Koning Vergouwen has carefully guided organisations through this painful process in a well-considered and solution-orientated manner. Great expert knowledge of subsidy regulations and procurement law is important here, just like having a wide experience in complex employee participation procedures that apply in this industry.