The OK18

Strike loans


IDA works hard to ensure a satisfactory result for our members during collective bargaining. Naturally, we hope negotiations will not end in industrial action but, recently, IDA and the other organisations in the Danish Confederation of Professional Associations have prepared for the possibility of industrial action. On this page you can read about the strike loan model. 

 

We have taken our cue from the Danish Union of Teachers, which introduced a loan model in 2013 to make their strike fund stretch further when employers staged a lockout. The fact that industrial action would be able to last approximately twice as long if a loan model is applied may have an impact on the result of the negotiations. Furthermore, it may be less costly after the end of industrial action to replenish the strike fund for future negotiations.

It is important to IDA that members are just as well off with a model whereby funds are paid out as a loan as they would be if paid strike benefits.

We are still working on a model for the strike loan, and therefore the model has not yet been finalised. However, we will update this page as soon as we have further information.

You will find answers to a lot of your questions below, but you are welcome to send us a mail if you have any other questions: ok18@ida.dk. You can follow IDA’s OK18 (2018 collective agreements) negotiations at our website.

What is the benefit of a strike loan?

Terms for members who take out a strike loan are the same as if funds were paid out as compensation for salary, since their fees will be reduced while they pay off the loan.

The loan model is less expensive in terms of replenishing strike funds for future negotiations – both for those selected for industrial action and those who are not. At a purely technical level, the loan model is similar to strike benefits, since the money is withdrawn from the strike fund. However, the amount paid out according to the loan model will typically be the member’s net salary because a loan is not taxable. This means that the amount withdrawn from the strike fund is significantly smaller. Consequently, the total amount to be repaid to the fund will be smaller and the cost to individual members will also be less.

In addition, the loan model will help the strike fund last longer, preparing IDA to withstand longer industrial action. The fact that industrial action would be able to last approximately twice as long if a loan model is applied may have an impact on the result of the negotiations. Furthermore, it may be less costly after the end of industrial action to replenish the strike funds for future negotiations.

Does a strike loan put everyone on equal footing?

Together with the Danish Confederation of Professional Associations, we have attempted to design a model that ensures equal terms for all.

All of IDA’s members in membership category 2 (employees) will contribute equally to the industrial action. Members selected to strike or for lockout will be given the option to take out a loan. Their fees will then be reduced while they pay off the loan. Members in category 2 (employees) who are not selected for industrial action will subsequently help replenish the strike funds, e.g. by an increase in fees.

What exactly will industrial action cost me if it goes ahead?

Since we don’t yet know the extent of the action, and how long it may last, we can't give a clear answer to this question. We will update this page as soon as we have more information.

How will holiday pay, pension, accrual of seniority, tax deductions and ATP be affected?

While you are affected by a strike or lockout, your employer will not make payments to your pension. There will typically be an impact on the amount of your insurance benefits, since these are fixed based on, among other things, the amount you pay in. Smaller contributions usually mean less coverage and slightly smaller savings. We will post further information about pensions later.

When you are involved in industrial action – affected by a strike or lockout – and, therefore, are temporarily unemployed, you don’t accrue the right to holiday with pay.

Nor do you accrue seniority or make payments to ATP, and you are responsible for changing your registration of future income with the Danish tax authorities (SKAT) yourself, since it will be impossible to avoid an impact on your total income.

Are you tied to IDA after the end of the industrial action?

No, you are not tied to IDA after industrial action comes to an end. However, if you take out a strike loan and then leave IDA, you must repay the loan when you terminate your membership. You will not receive the benefit of the reduction in fees once you have left. On the other hand, this helps ensure that the people who actually received funding from IDA during the industrial action contribute to replenishment of the strike fund by repaying their loans.

Where do I borrow the money?

On behalf of IDA and the other member organisations, the Confederation of Professional Associations has entered into an agreement with Lån & Spar Bank to handle the administrative part of the loan processing. Therefore, a loan agreement is entered into between the individual member and Lån & Spar. Lån & Spar Bank receives the request for the loan, arranges for the loan and pays it out.

How much can I borrow?

This has not yet been defined but we are operating on the basis that the loan will approximately cover your net salary.

Will the bank contact me automatically if I wish to take out a strike loan?

No. You must actively apply for the loan, but you will hear from us if you are eligible to apply.

What do I specifically need to do to take out the strike loan?

This has not yet been finally defined but we will update this page as soon as we have information.

Do I have to take out the loan if I’m selected for industrial action?

It is up to you whether you wish to make use of this option. If you are selected for industrial action and decide not to take out a loan, your fees will still be reduced after the industrial action ends.

What should I do if I don’t want to take out the strike loan?

Nothing. Basically, you don't take out a loan if you don’t do anything.

Can I borrow less or more according to my needs?

We are still working on this. You will receive further information when we have defined the final loan model. However, we imagine that you will be able to borrow an amount approximately equivalent to your net salary.

What is the interest rate?

The interest rate for the loan is one of the things we are working on, but you will find information here as soon as we know more.

What happens if I take out a loan and then leave IDA?

You must pay back the loan when you terminate your membership.

What is my position if I’m selected for industrial action and don't take out a loan but, for example, use my own savings instead?

Your position is the same as that of the members who select to take out a strike loan. This means that your fees will be reduced after industrial action ends even if you use your own savings instead of a strike loan.

When and how do I pay back the money?

We have not yet defined a repayment plan, but as soon as we have more information we will post it on this page.

How long do I have to repay?

The repayment model has not yet been defined and will also depend on the duration of any industrial action and the size of the loan.

Do I also need to repay the strike loan if I lose my job, fall ill or retire?

We are in the process of identifying the many different scenarios in which members may not be able to repay. However, these situations will need to be handled specifically and individually to ensure that the position of individual members is not less favourable than their position if they had been paid compensation for loss of salary. In practice, the Employee Council will set up a ‘fund’ from which compensation will be paid to members.

How long may IDA be involved in industrial action?

Due to negotiation tactics, we can’t say precisely how long we would be able to fund industrial action. This also depends on the extent and duration of the action.

What will my position be during industrial action if I have taken out salary insurance through IDA or AKA (academics’ unemployment insurance fund)?

Please contact AKA for an answer to this question.