Dutch govt to extend scheme to cut working hours-report

AMSTERDAM Jan 14 (Reuters) - The Dutch government plans to extend a programme that allows companies to cut working hours of employees, who then receive partial unemployment benefits, news agency ANP quoted a government minister saying on Wednesday.

Social Affairs Minister Piet Hein Donner said he was ready to extend the scheme until March 1, but hoped to agree on a new plan to avoid large-scale unemployment with employers and trade unions well before that deadline, ANP said.

The social affairs ministry was not immediately available to confirm the report.

More than 130 companies, including chip equipment maker ASML (ASML.AS) and Tata Steel (TISC.BO) unit Corus, have successfully applied to reduce working hours under the plan, which was due to expire on Thursday. [ID:nL2204699]

Donner has said that shortening working hours was not an adequate response to the financial crisis and that the state should not "preserve jobs where the work has disappeared".

"The big challenge in the immediate future will be to smooth people's transition into a different job, preferably before they have become unemployed," he said this week, in a speech released by the ministry.

The Dutch cabinet is due on Friday to discuss additional measures to boost the economy beyond a 6 billion euro ($8 billion) package announced in November. [ID:nLL180341] ($1=.7547 Euro) (Reporting by Niclas Mika; editing by Simon Jessop)