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    Torgeir Aarvaag Stokke,

    Jon Erik Dlvik andKristine Nergaard

    Industrial relationsin Norway

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    Torgeir Aarvaag Stokke,Jon Erik Dlvik andKristine Nergaard

    Industrial relations in Norway

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    Fafo Institute for Applied Social Science 1999

    ISBN 82-7422-238-5

    The first part is reprinted from Anthony Ferner & Richard H

    Changing Industrial Relations in Europe, with permission f

    Publishers 1998

    Cover page: Jon S. Lahlum

    Printed in Norway by: Centraltrykkeriet AS

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    Contents

    Preface .............................................................................

    Part 1

    Norway: The Revival of Centralized Concertation.......

    Jon Erik Dlvik and Torgeir Aarvaag Stokke

    Introduction ....................................................................

    Historical Background and Economic-Political Overvie

    The Norwegian System of Industrial Relations ...........Employer Organizations .........................................................

    Trade Unions ...........................................................................

    Regulatory Framework of Collective Bargaining ..................

    The Institutional Embeddedness of Collective Bargaining ...

    Collective Bargaining in Transition Recent DevelopeFrom Crisis to Solidarity Pact The Revival of Concertation

    The 'Solidarity Alternative' .....................................................

    The 1996 Pay Round The Crumbling of Solidaristic Concer

    The EU and European Labour Regulations............................

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    Part 2

    Collective bargaining in Norway 199798....................

    Kristine Nergaard and Torgeir Aarvaag Stokke

    1 General background information ..............................

    1.1 The Solidarity Alternative .................................................

    1.2 Change of government autumn 1997 .............................1.3 Steady improvements in Norwegian economy................

    1.4 Union demands, employers attitudes and the role of the

    2 Collective bargaining in 1997.....................................

    2.1 The 1997 wage negotiations ............................................

    2.2 New basic agreements ......................................................

    2.3 Split in AF and establishment of a new employee confe2.4 Committee proposal on a further education and trainin

    3 Wages and purchasing power 1997 ...........................

    3.1 Development in wages .....................................................

    3.2 Cost of living .....................................................................

    4 Other issues .................................................................4.1 Working time developments ............................................

    4.2 Europeanisation of collective bargaining........................

    4.3 Level of wage determination ...........................................

    4.4 The debate on flexibility ..................................................

    4.5 Gender issues.....................................................................

    5 Industrial disputes in the 1990s .................................5.1 Legal background .............................................................

    5.2 The level of industrial disputes ........................................

    5.3 New strategies...................................................................

    5.4 European impact of national strikes ................................

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    Preface

    Although most Norwegians understand English and we experienternationalisation of most aspects of modern societies, up to dateanalyses of developments in the Norwegian society are not easily lish. This counts in particular for the field of industrial relations,been established as a separate discipline at Norwegian universitidustrial relations have thus been marked by the varying approachtional disciplines, such as sociology, economics, political science to a lack of integration and cross-disciplinary exchange.

    At Fafo, our close co-operation with major organised actmarket and growing participation in comparative international res

    efforts to adopt a broader, inter-disciplinary approach. In our strivbetter understanding of the driving forces behind developmenindustrial relations, we have in particular discovered the need for ations of the main institutional frameworks and social actors of Nolife.

    This publication consists of two articles. The first is a repri

    gian chapter in Anthony Ferner & Richard Hymans Changing Inin Europe(Blackwell Publishers 1998). In that article, the basic feat

    wegian model are explained, and its evolution is traced from thtill 1996. The second article is an updated version of a contributpublication Collective Bargaining in Western Europe 1997-1998

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    Our research has benefited from grants from the Ministry of Local Regional Development and the Research Council of Norway. In ato thank colleagues in other European countries and in the Unitspiration and comments. We hope that this way of reporting bamore general audience, including the labour market parties, offici

    and other observers.

    Fafo Institute for Applied Social ScienceOslo, February 1999

    Torgeir Aarvaag Stokke Jon Erik Dlvik KristResearcher, dr.polit. Researcher, dr.philos. Resea

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    Part 1

    Norway:

    The Revival of Centralized Concer

    Jon Erik Dlvik and Torgeir Aarvaag Stokke

    Reprinted from Chapter 4 (pp 118145) in Anthony Ferner & Richard Hym

    Industrial Relations in Europe, Blackwell Publishers 1998

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    Introduction

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    Historical Background and Econom

    Political Overview

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    The Norwegian System of IndustrRelations

    Employer Organizations

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    Trade Unions

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    Regulatory Framework of Collective Bargai

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    The Institutional Embeddedness of CoBargaining

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    Collective Bargaining in Transition

    Recent Developements

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    From Crisis to Solidarity Pact The ReConcertation

    The 'Solidarity Alternative'

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    y

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    The 1996 Pay Round The crumbling ofConcertation?

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    Concertation?

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    The EU and European Labour Regulations

    A Changing Industrial Relations Agenda

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    Conclusion Continuity and Chan

    Norwegian Industrial Relations

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    Abbreviations

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    Notes

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    Part 2

    Collective bargaining in Norway 1

    Kristine Nergaard and Torgeir Aarvaag Stokke

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    1 General background informatio

    1.1 The Solidarity Alternative

    In the 1990s, wage bargaining in Norway has been characterisedthe social partners and the government have agreed to a social pSolidarity Alternative. The aim of this tri-partite pact is to incresecure important welfare policies and improve the Norwegian econ

    will be achieved through a moderate wage growth and an active laboamong other things. The Solidarity Alternative, which is a result oNorwegian Employment Commission, an ad-hoc joint committee19921997. However, the main elements of this pact were already

    when the majority of social partners accepted a wage act directedgrowth. The 1997 LO Congress adopted a resolution to continumain objectives of the Solidarity Alternative, i.e. moderate wage bined with an active employment policy. In its decision, LO emfor social reforms, amongst others the right to further training a

    all employees. The main employers organisation in private sectortion of Norwegian Business and Industry (NHO), has expressed decentralised and flexible wage setting policy, but has so far not sigdrawal from the centralised negotiation system, nor from the tri-

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    programmes and in earlier political debates had diverging views orelated issues. This is the case with regard to amending the sick pamake it less generous, and making the regulations regarding tempoand hireing out labour less restrictive. So far the change of governto any major changes in labour market policy or industrial relatioThe new centre government has also expressed a wish to continue

    the social partners.

    1.3 Steady improvements in Norwegian e

    During the 1990s the Norwegian economy has improved signiannual employment objectives defined in the Solidarity Alternatsooner than expected. In 1996 economic growth reached its high1980s. There was a substantial increase in GDP, which was up by the previous year. Increased revenues from oil and gas production cthis growth. The increase in mainland GDP (GDP exclusive oil a

    3.7 percent in the same period. The GDP increase for 1997 was 3.5the latest estimates for 1998 suggest an increase of 3.2 percent. M1997 was 3.8 percent and the latest 1998 estimates are 3.5 percent. revenues from the petroleum sector, Norway has had a public bulast few years. The surplus is transferred to the Government Petro

    Moderate wage settlements and low inflation during the eathat the Norwegian manufacturing sector improved its competitiits most important trading partners measured in terms of total wever, in the period 1994-1997 total wage costs increased more rathan among its trading partners.1A strong Norwegian currency (Nto further raise relative wage costs in Norway.

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    percent of the labour force were registered as unemployed, while enrolled in job creation schemes. The figures for May 1996 werepercent and 1.8 percent.3There is now a lack of qualified labour of the economy, among others the health sector and the constructhe National Budget for 1998 it was pointed out that the main ccure sufficient access to manpower in order to fill the vacant positi

    market. Norwegian labour market participation is high, and duriter of 1998, 72.5 percent of the population between 16 and 74 yemployed.

    During the second half of 1998, the prospects for the Norhave become more uncertain. This is caused both by a costly bar1998, a high level of public spending, a low oil price and a rise in

    rates. Such factors might alter the foundations on which the curunemployment and consumer prices rest, and change the competthe exporting industries. This possibility for of a reversal of trends isin the current economic debate.

    1.4 Union demands, employers attitudesrole of the government

    The period from 1988 onwards has been characterised by the agrsocial partners to comply with the Solidarity Alternative.4For mthis has taken place on a voluntary basis. The 1988 and 1989 wagepartly regulated by law, while the ensuing bargaining rounds mayas normal.

    The Norwegian bargaining system is centralised both in thpublic sector. Within the private sector agreements between union

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    and county employers. The Municipality of Oslo conducts its own these are usually closely co-ordinated with the main negotiationnicipal sector. In addition there is an employer organisation fmous state enterprises.Different bargaining cartels bargain on behand confederations on the employee side within the public sector

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    2 Collective bargaining in 1997

    2.1 The 1997 wage negotiations

    The majority of Norwegian wage agreements are two-year agreemin 1998. The 1997 negotiations were therefore mid-term renegotiterm renegotiations between unions affiliated to LO and NHO, wh

    others the manufacturing sector, building and construction, tranand restaurants always take place at the confederation level, i.e. LO and NHO. Mid-term renegotiations mainly deal with questition, but in 1997 the parties also had to agree on the framework scheme for voluntary early retirement. The voluntary early retiremfirst introduced in the 1988 wage negotiations, and has later beenage groups. In the 1996 settlement the parties agreed that the sextended to employees from the age of 62 through 63.

    LO and NHO reached an agreement which gave wage increNOK 0.80 to NOK 1.50 per hour. The negotiations for other agprivate sector also resulted in the recommended solutions beingpublic sector as well, wage negotiations were concluded after all thed the State Mediators proposals for the three agreement areas, i.e

    the municipal sector and the Municipality of Oslo.The early retirement issue was considered to be the most dif

    term renegotiations. The most contentious question was the scopi.e. how many employees in the age group from 62 through 63 yea

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    the tax burden on those who make use of the scheme, and by makcombine the early retirement scheme with the National Insurancmade possible by ensuring that people who are using the voluntarscheme continue acquiring pension rights within the National Insuscheme until the age of 67 years. In contrast to the scheme appligroup 6466 years, the state will not cover any of the direct cost

    tended scheme.In the 1997 bargaining round, the extended early retirem

    made applicable to both state and municipal employees. The twoing parties on the employer side, the state and KS, differed in thetype of scheme the agreements should include. While the state wthat resembled the one agreed upon by the parties in the private sec

    an alternative scheme. Although the employee side preferred KS prminister made it clear that the government would not support anscheme that was distinct from the LO/NHO scheme. For this reasaccepted the LO/NHO scheme.

    The only strike to affect the 1997 negotiations came in thefor the mobile offshore units. The Employers Organisation for ShInstallations (ASO) and the Federation of Offshore Workers Tra

    were unable to reach a new wage agreement, and after a five-weeconflict the Labour government decided to recommend compulsochange of government did not lead to a withdrawal of this propeventually accepted by a majority in the Norwegian parliament.

    2.2 New basic agreements

    In 1997 and early 1998 the Basic Agreement between LO and N

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    The renegotiations ended in several substantial changes in the Ba

    The introduction of sanctions against severe breaches of thand consult trade union representatives with regard to thoperations, reorganisation or changes such as mergers or clodo not comply with the Basic Agreements clauses regardingconsultation may be fined up to NOK 300 000. Trade uniomay also be fined if they disclose confidential informationpersons.

    The introduction of minimum standards for how manyaffiliated union must have in order to be eligible to demacollective agreement in a NHO firm. Until now it has been

    union had one member. According to the new agreementorganise at least 10 percent of the relevant employees befmand an agreement. If there already is a relevant agreemenew union must organise at least 30 percent of the emplocan demand an agreement that will cover the same groups

    In cases of lawful conflict LO is not to take strike action ag

    alone, but also against non-organised firms with the same tyThis will basically affect firms with no employer-affiliationan agreement that stipulates that a branch-wide agreement

    The rights of trade union representatives at the concern levresentatives) have been expanded. A specific concern reprelected within concerns with more than 200 employees. The

    of trade union representatives for which the Basic Agreemalso be made applicable to concern representatives.

    The Basic Agreement between NHO and the Confederation of Ntional Unions (YS) covers the same sectors as the LO/NHO ag

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    confederations with a general 10 percent membership requiremenmand a collective agreement.

    2.3 Split in AF and establishment of a new

    employee confederation

    Another issue to leave its mark on Norwegian industrial relationsbreak-up of the Federation of Norwegian Professional Associationber 1997 it became public knowledge that seven unions affiliated ed to break away in order to establish a new confederation in co-o

    Norwegian Medical Association, a former AF member. The splitas a surprise both to the public and the elected leaders in AF, andrelations between AF and the new confederation, Akademikerne. for the split was dissatisfaction with the results which AF has achlic sector wage negotiations as well as internal conflicts over AFs pities regarding wage claims (see Dlvik 1999 for a discussion). Acco

    utes, Akademikerne will be a confederation for trade unionsprofessionals with higher academic education, i.e. employees withsity degree (masters level, in Norway mainly five years or more of hor equivalent. Furthermore, Akademikerne will strive for a differeket based wage determination, as far as possible through local barglevel.7The new confederation has approximately 100,000 membproximately 70,000 are wage-earners (August 1998).

    The new confederation was legally prohibited from negot1998 wage settlement. In two lawsuits during the spring 1998, Akadto get their negotiating rights established, but the courts ruled thabargaining rights during the 1998 wage settlement. The main rea

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    2.4 Committee proposal on a further edutraining reform

    A third issue which has been on the political and industrial relNorway during 1997 is the question of further education and traindemands in the 1996 wage settlement was the introduction of

    ensure further education and training. During the autumn of 1996appointed a committee to look into questions relating to adult edfurther education and training. A broad group of interests were rcommittee, among others via representatives from employee andisations. The committees recommendation was presented on 1 Ocommittee proposes that all employees shall have a statutory righ

    sence for educational and training purposes, but this does not inclduring the leave of absence. The committee believes that it is imup a system in which employees actual qualifications are documeshould, among other things, include information about job tasks,ing, external courses and further education and training. One ofproposals ensures that adult employees are given the opportunity

    12 years schooling within the present educational system. The pwithin further education and training must be seen as moderate, aduced gradually. Significant parts of the reform are also left to thparties to define and implement, and it was expected in 1997 thaimplementing and financing the reform would be on the agendabargaining round.

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    3 Wages and purchasing power 19

    3.1 Development in wages

    As tradition will have it, the 1997 mid-term wage negotiations stagotiations between LO and NHO regarding manufacturing, contransportation, etc. Depending on wage level and whether the bra

    to negotiate at company level or not, the parties managed to agreeadjustments. LO and NHO agreed that agreement areas in whichnual income falls below NOK 185,000 shall receive a higher cenagreement areas with an average annual income above this limiincreases shall be higher in areas without local bargaining rights,areas with local bargaining (see Table 1). It has been common pr1990s that the central increases vary according to whether or not lgiven within the different agreement areas. However, the vast majagreements within the LO/NHO area open up for local bargainan average annual income well above NOK 185,000. The wage inforce on 1 April 1997, and were estimated to increase wages on a1.00 or by 0.8 percent from 1996 to 1997. The rules guaranteeing ato the average earnings (the low wage guarantee), gave additional w

    some groups from 1 October. In addition to the centrally agreedlocal negotiations take place at the company level.

    Table 1 Central wage increases for different agreement areas within the LO/

    h

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    The new agreements in public sector provided employees with ancrease of NOK 2,500. In addition, employees with an annual sa200,000 received a supplementary increase varying from NOK 1per year. In the 1997 state sector settlement only approximately 4total wage increases were allocated in the central wage negotiationfunds were set aside for the central wage regulation negotiations

    gotiations. Local negotiations took also place in the municipal seProvisional estimates show an average wage growth of 4.25

    (Table 2). Wage increases are somewhat higher amongst white-collNHO firms compared to blue-collar workers in the same sector.

    workers in the construction industry, who on average had a wagecent. The wage increases among public sector employees and blu

    in manufacturing were 4 percent. The estimates do not indicate, hnificant differences between the main categories of employees.

    Table 2 Estimated wage growth from 1996 to 1997. Selected groups

    eP

    spuorgllA 4

    OHNotdetailiffastnemhsilbatsenisrekroW

    )ruohehtybdiapseeyolpme(

    gnirutcafunaM

    noitcurtsnoC

    tropsnartdnaL

    OHNotdetailiffastnemhsilbatseniseeyolpmedeiralaS

    edartelaselohwdnaliaterniseeyolpmE stnaruatserdnasletohniseeyolpmE

    sknabsgnivasdnalaicremmocniseeyolpmE

    seeyolpmetnemnrevoglartneC

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    3.2 Cost of living

    The cost of living index for 1997 increased by 2.6 percent. Durburden was not significantly increased. The estimate for real wageation for 1997 is 1.8 percent, against 2.9 percent in 1996.

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    4 Other issues

    4.1 Working time developments

    The 1997 wage settlement did not entail any changes to weekly time. Working time issues were not on the negotiation agenda, mfact that the 1997 bargaining round was mid-term negotiations.

    tral issue in the negotiations was how to implement the agreementretirement scheme, which in the last settlement was extended to tyears.

    4.2 Europeanisation of collective bargain

    There has been little movement towards europeanisation of collein Norway. The European Works Council (EWC) Directive has bed by way of collective agreement and supported by back-up legisciple elements of the EWC Directive are included in the Basic AgLO and NHO (see Reegrd 1996 for further information).The

    of the EWC Directive also entailed certain institutional changes,ETUI 1996/1997 report on collective bargaining. In 1996 17 Nnational enterprises fell within the scope of the directive, and todaprises approximately 20 companies. There have been no EWC agree

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    (NOK) exchange rate against the ECU. The government has sigwill not be any major changes in Norwegian monetary policy; pursue a policy in which the Norwegian currency is kept stable inEuropean currencies, among which the euro will play an imporRevised National Budget for 1998, presented in May 1998, the gthat the EMU will lead to stronger competition for the Norwegian

    as require a number of practical adjustments. It was also announernment would leave the specific choice of reference currencies the Central Bank. The general impression, however, is that neithenor the Norwegian Central Bank or the labour market parties extroduction of the euro or the EMU will lead to any major changeconomic policy or industrial relations in the short and medium

    4.3 Level of wage determination

    A majority of employees within the LO/NHO area works in company level bargaining. There is no detailed overview over the size increases, but estimates concerning total wage drift for the manusuggest that the level was more or less the same for 1997 as it was inblue-collar workers in the manufacturing industry witnessed a 4.0 pOf this, 1.6 percent was spillover from the 1996 negotiations, 0.6 ped in the 1997 central negotiations and the rest was due to wagelocal firm-related negotiations is just one of the components of wag

    es in average wage levels that may not easily be explained by centraincreases.

    The employer side, and particularly NHO, has argued thation of wages should to a greater extent take place locally, and th

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    questionnaires directed to private sector companies show that waon incentives such as bonuses are not uncommon. However, otion of the employees claim that they have bonuses.10

    4.4 The debate on flexibility

    Working time and different kinds of flexible working time arrangelabour market parties agendas, and form part of their strategic dihas on several occasions called for more flexible working time arranput the issue on the bargaining agenda on several occasions during t

    This has not, however, resulted in any significant changes to the aghas also called for changes in the regulations regarding overtime, etracts and the hireing out of employees, and argues that the rathgian regulations should be changed into more flexible arrangemenal of the political parties, some of the government parties includchanges, there is at present no political majority in favour of chanulations. The latest figures presented by Statistics Norway show age of people on temporary employment contracts was lower in 1previous years. However, private placement services doubled the numan-hours from 1994 to 1996 and the growth has continued in

    LO is also calling for a wider debate regarding working hohour arrangements. In the organisations new Action Programmbated at LOs Congress in May 1997, support is given to a short

    lower retirement age and longer annual leave. LO does not stipumeasures should be given highest priority. Instead LO will strive fcollectively based schemes providing working hour arrangementscordance with the changing wishes and needs of each individual. L

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    4.5 Gender issues

    One of LOs demands during the 1997 settlement was the reducgap between female and male employees. This has also been a geprevious settlements. The other employee confederations also wimprovement in womens wages.

    The overall picture with regard to wage differences betweenemployed on a full-time basis has not changed much during the figures are broken down into groups or agreement areas, one cantinct levelling out of the wage differences, even though on averagthan women within most of the major agreement areas. There are oes in womens average wage level compared to mens from 1996 t

    Within the private sector no specific increases for womeHowever, the profile in the central level settlements (flat wage increaincreases to the lowest paid groups) gave a greater percentage inincome groups. This is generally seen as a way to even out wage difmen and women.In the 1997 LO/NHO agreement, the parties ment encouraging the local parties to discuss questions of equali

    with the aim of agreeing on a firm-specific equality agreement.Tthis work should be intensified. LO and NHO will, in co-opermember organisations, prepare strategies, organise course and conand develop course material to aid the work done at the local lev

    The public sector also witnessed flat rate wage increases, wtal rise for the lowest paid groups. Within the state sector the agreprovision stating that women should get a larger share of the p

    adjustments negotiations than what the pro-rata-distribution normIn the agreement for the municipal sector it is stipulated that the locattach greatest importance to low incomes and equal pay.

    The gender aspect was also present in the negotiations reg

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    5 Industrial disputes in the 1990s

    5.1 Legal background

    The peace duty makes industrial conflict during the collective aillegal. The obligation is highly respected, and wildcat strikes areNorway (in contrast to for example Denmark). A legal opportun

    exists in some minimum wage agreements, but is seldom used. Wof a major conflict in 1986, the use of lockout is also rare in Norwactive form. Thus, most industrial disputes take the form of strikgotiations for renewal of collective agreements.

    Regulations in both labour law and basic agreements reservthe ballot among union members in collective bargaining. Ballotin all bi-annual main bargaining rounds (for example 1994, 1996)

    imposedby the state on the unions. Instead, they play an importamember acceptance for recommended proposals. Ballots are not ne

    wants to call a strike.

    5.2 The level of industrial disputes

    Strikes in Norway are not frequent, and averaged only 14 per y1978-1997.13Still, once a strike is called, it tends to cover a signi

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    fluctuate with the type of negotiations. In typical mid-term years a1995 and 1997, strikes are somewhat fewer and include few worbargaining rounds, as in 1990, 1992, 1994 and 1996, strikes areinclude more workers (Table 3).

    A large number of working days lost in a single year tends ta few major disputes. This is the case with private transport in 19

    oil and gas extraction in 1980 (40,200 wdl); private transport (1fishing (50,700 wdl) in 1982; public sector (81,000 wdl) in 19(517,300 wdl), the public sector (343,000 wdl) and oil and gas ex

    wdl) in 1986; a public sector political strike both in 1988 (77,000) awdl); the local government sector (253,400 wdl) and private transpin 1992; the public sector in 1995 (46,400 wdl); and manufacturiand electrical installation (239,700) in 1996. Lost working days

    Table 3 Industrial disputes 19781997

    setupsidlairtsudnI devlovnisrekroW nikroW

    8791 41 954,4

    9791 01 377,2

    0891 53 257,81

    1891 71 492,4

    2891 21 185,42

    3891 9 810,1

    4891 12 536,03

    5891 11 755,6

    6891 61 047,561 ,1

    7891 01 564,2

    8891 51 233,8

    9891 41 78211

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    1992 and 1996, but there are no general tendencies towards incrin the period reviewed.

    In Table 4, working days lost due to industrial disputes in t1997 is broken down by industry. Column 3 in the table might suport and construction are the most strike-prone industries, butconstruction is largely due to a major lockout in 1986. Public se

    than both the average and most private sector industries, and bothprivate service is marked with extremely low levels of industrialunion density is also considered, transport seems to be joined by hrants in being strike-prone. This is partly explained by the lockoualso affected hotels and restaurants, in addition there was a striklevel in 1996.

    The measurement of trends over time is somewhat problethe low level of strikes/conflicts. Still, we can compare private maservice with the public sector. This is shown in Table 5. There is towards a reduction of the role played by manufacturing in ind

    Again, this is caused by a low number of actual disputes, and ththe trend is questionable. No clear signs towards a tertiarisation 1990s can be noted. The current levels of disputes, especially in tra

    mal and both the trade industry and other private services still s

    Table 4 Working days lost due to industrial conflict by industry, 19781

    relative figures*

    yrtsudnI

    )stcilfnocforebmun(

    gnikroW

    tsolsyad

    reptsolsyaD

    0001

    seeyolpme

    noinU

    %,ytisned

    )1(erutlucirgA 515,1 5.4 72

    )2(lio,gniniM 783,701 7.542 26

    )3(gnirutcafunaM 143,578 2.662 26

    )(i

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    sector disputes started to play a role in Norway during the midcurrent level is again caused by only a few incidences.

    Table 5 Working days lost by sector in percent of total, 19781989 and 19

    98918791 91

    )3,2(gnirutcafunaM 63

    )85,1(rotcesetavirprehtO 33

    )9(rotcescilbuP 13

    latoT 001

    5.3 New strategies

    Ad-hoc state intervention with compulsory arbitration has been in collective bargaining in Norway since 1916. ILO conventionstate intervention to essential services, have largely been ignoredalso in the 1980s and 1990s. In certain situations where unions

    towards their own members, the option of resorting to compuby provoking state intervention has also played a role (Stokke 19

    Collective labour law equates industrial disputes with afullsA union may chose to call a selective strike, but each striker musting. Thus, industrial disputes take the form of a walkout. In the pions still strive with the double effect of the strike, affecting bot

    the public. The labour parties in for example Sweden can also notifpartial stoppages of work on the individual level. This was attempLO union in the municipal sector in Norway in 1998, but the emit. Although both innovation and co-ordination between bargain

    bli h l

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    towards the illegal, and accusations of strikebreaking. Employersresponded with legal suits, but no trends towards union bustintions, can be noted.

    5.4 European impact of national strikes

    Most industrial disputes in Norway have been national in scope.should be mentioned. First, strikes in aviation in any Scandinavto affect passengers in all three countries and even beyond. This ture (see Stokke 1998:52930). Second, strikes in transport can

    foodstuffs (especially fish) and other goods to the continent. Thand gas extraction can affect the delivery of energy sources to theeffects, and the possible damage to Norways reputation as a staband gas, have in fact been used as an argument for state interventisory arbitration in these strikes (see Stokke 1998).

    Fourth, an agreement in the pace-setting metal sector in 1by union members in a ballot, prompting the most far-reaching pr

    since the 1930s. The conflict demonstrated for the first time in Noreffectiveness and international impact of work stoppage in a contex

    just-in-time production. Cancellation of Norwegian deliveries rato lame parts of European car industry. Wary about loss of contractunprepared for conflict, and many apparently waited for governm

    with compulsory arbitration. While receiving no support from Swe

    ers who were under pressure from Volvo, the unions got public German union IG-Metal, who promised they would make sure Npanies did not loose their contract status. It turned out the unionspared for lasting conflict, and a modestly amended compromise w

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    Two issues are still under debate. First, employers wish a more desetting in order to increase the flexibility of the individual firm. Ka proposition will be met with demands that the right to strike alstralised, the employers have not, however, been aggressive (as in Sing this approach.

    Second, the officially appointed Labour Law Commission

    atives also from LO and NHO) suggested in 1996 a reform of theAct, aimed at reducing the amount of strikes in connection with ctive agreements. Stricter principles of inderogability, implying that aby one of the main confederations can not be deviated from by ions, are combined with stricter criteria for recognition as a con

    would strengthen the role of confederations, also urging strongernation and more central decision-making power in issues of colland industrial action in AF and YS. In the municipal sector it is sugof individual unions can be coupled within each confederation,sector. The proposed reform could, if passed, effectively curb somefor example, in aviation and the oil sector. But it is harder to seesolve the more pressing issue of conflicting settlements between terations, especially in public sector. The reform is in addition qu

    and its destiny is still not known (Dlvik and Stokke 1998, Stokke signals from the government indicate a wish to do something abostructure in the municipal sector. In relation to inderogability ofments in the private sector however, the need for stricter principlenow than in the early 1990s according to the government. The gotheless signals new rounds of deliberations on the modernisatio

    Dispute Act (Aftenposten December 18, 1998).

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    6 The bargaining rounds in 1998

    6.1 Background

    During 1998 the two-year wage agreements in Norway were renetral issue prior to this years settlement was deciding upon typeo

    whether the negotiations are to take place centrally between LOthe branch level. Traditionally the question concerning type of seLOs General Council to decide, and it does so at same time as gaining demands. LO sees type of settlement as a matter of practto be resolved prior to each settlement. Before the 1998 renegunions, as well as the elected leadership in LO, expressed a prefnegotiations between the two confederations. An important reasoinclude questions regarding rights to further education and traini

    United Federation of Trade Unions, which is LOs largest private cided to cast their vote in favour of branch level negotiations andout. At its General Council meeting on 10 February 1998, LO vindustry-wide settlements in the forthcoming bargaining round itor. In addition, LO wanted to bargain with NHO, at the confethe principles that are to be applied in a reform for further educat

    The two last main settlements (1994 and 1996) were industry-withat the 1998 settlement is also to be industry-wide means that Nothe third industry-wide main settlement in a row.

    As is customary, LOs General Council also voted over the

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    countries, thereby indicating that total wage growth for 1998 shoupercent. In addition, NHOs Central Board emphasised that the brmust ensure that firms take responsibility with regard to the wagemanagers, senior staff and other groups with strong market posinot reject LOs proposal to examine closer different schemes to inbut emphasised that the schemes must not result in a furth

    employment.

    6.2 Confederation level negotiations

    Preceding the industry-wide wage negotiations within the privatNHO bargained over more general issues. The most central issuegotiations was the question of further and continuing education. Tto an action plan for competence development which is to be tendeavour to realise a further and continuing education reform.adopts many of the proposals put forward by the public committee in which both LO and NHO were represented.

    LO and NHO agreed that an individual statutory right tofor educational purposes should be introduced. Qualifying conditleast three years of continuing employment, and two years of emfirm from which leave of absence is requested. LO and NHO woquestions regarding the leave to be handled by the parties at the cothat the right to leave may be temporarily deferred if operations c

    ably maintained as a result of the leave.LO and NHO would also like to see the establishment o

    will strengthen further and continuing vocational training. Such a sbe financed by way of funds set aside in the wage settlements. LO

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    that competence acquired through training at work should be betLO and NHO will jointly develop schemes which make it possibthe documentation of individuals acquired competencies.

    The parties informed the prime minister of the main issuetions, and the government was asked with what they could contsponse to LO and NHO, the prime minister promised that the go

    present a White Paper before the summer. The prime minister sgovernment will be in favour of an individual right to leave for thther and continuing education, and that it will not propose to ab20 scheme. The government would also like to make it possible forhave not completed primary or secondary school to do so.

    LO and NHO also agreed on minor adjustments to the exisfor agreed early retirement, among other things a readjustment of bership fees, and the introduction of a one-year obligatory period ofthe collective agreement has been established to when the early retakes effect. The last change was introduced in order to avoid fr

    6.3 The branch level negotiations

    Since the 1998 renegotiations were conducted at the branch leveof agreements were to be negotiated individually in the private se

    will have it, the 1998 wage negotiations started off in the metal iagreement between the Norwegian United Federation of Trade

    Federation of Norwegian Engineering Industries (TBL). The metlargest agreement area between LO and NHO. The parties agreed increase of NOK 3.00 per hour, and the minimum wage rate and

    work were also adjusted. The employees of the metal industries

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    Employers Confederation, which is an independent employers gotiated an agreement allowing for a general wage increase of NOThis sector is regarded as a low-pay area. Employees in hotels annot have the opportunity of workplace negotiations. They receiveincrease of NOK 3.00 per hour and a low-pay bonus of NOK 2.some groups the wage rates were raised even further, and the low

    secured approximately NOK 15,000 per year. Incorporated into this an entirely new type of wage bonus arrangement for the enhanpay among women and men. The amount of NOK 1.00 per ho

    will be set aside as an equal pay fund at the company level. In ordethere must be established company agreements on equal pay. In10 or more employees committees on equal pay must be establishpanies with less than 10 employees such committees must be estabof the parties expresses a wish to do so. Such agreements must before 1 October 1998, while the bonus arrangement based on the fudated to, and come into force, on 1 April 1998. The hotel and rea female-dominated sector, where approximately 70 percent of emen. In the banking sector the parties agreed on a general wage inccent per year and a minimum wage increase of NOK 10,000 per

    in the banking sector also accepted a new agreement structure whcompany-level agreements was expanded.

    The first instance of industrial action took place in the trtor, where the negotiations between the Norwegian Transport (NTF) and the Norwegian Bus Drivers Union (NRAF) on the oFederation of Norwegian Transport Companies and the Norwegia

    ciation on the other, broke down just after midnight on 13 May 1time that the two competing unions, NTF (a member union oConfederation of Trade Unions, LO) and NRAF (a member unioeration of Vocational Unions, YS) have joined forces in wage set

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    flexibility clauses have been incorporated into other agreements asin the metal industry were given the right to paid leave of absencof taking children, on their first day, to school or nursery. This pbeen incorporated into other agreements in the private sector. F

    with small children have been given the daily right to two half-hternatively one hour off, for breastfeeding purposes.

    Wages in the metal industry are estimated to increase by 3.5 of the new central agreement together with wage increases resultinagreement. The results from the local bargaining rounds indicatecrease of 5.5 percent in 1998 (TBL September 1998). Estimates inturing industries are in some cases slightly higher. In retail and who

    wage growth in 1998 is estimated to be 6 per cent, whereas emplorestaurants on average will have their wages increased by 6.5 perc

    6.4 Public sector wage bargaining in 1998

    The wage settlement negotiations in public sector were partly conc

    1998. The negotiations covered the three agreement areas of the ipal sector and the Municipality of Oslo. In the state sector the Lions, the YS-affiliated unions, the Norwegian Union of Teachersgian Police Federation accepted a proposal put forward by the statthe Federation of Norwegian Professional Associations (AF) rejecand went out on strike. In the municipal sector (excluding Oslo) a

    reached between the employer side and the LO unions, the NorwTeachers and parts of YS, while AF and some of the YS-unions wIn the Municipality of Oslo a few AF-unions (among others thetion) went on strike. Some of these strikes were met with compu

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    In the municipal sector, some adjustments have been made to thelowest paid groups, and funds have been set aside for local negotiatiations in the municipal sector are estimated to produce a wagpercent.

    During September and October of 1998, the National Wagin those public sector disputes which were halted by compulsory

    municipal sector unions affiliated to the Federation of Norwegiansociations received partial support for their demands. Some occuamong others nurses with special education and radiographists, increases beyond the increase established in the agreement acceporganisations. The other rulings in the state and municipal sector presult as the organisations were offered during mediation prior t

    which was accepted by a majority of the organisations.The National Wage Board has traditionally been cautious

    ing demands from an organisation that goes beyond what the majtions have already approved. Since the beginning of the 1970s thin approximately 60 disputes. Only in a few of these cases have thfrom already established settlement norms. Still, the deviation in 1demands concerning renegotiations by some of the unions who p

    majority deal in May 1998.

    6.5 Economic prospects autumn 1998

    In the last few years Norway has experienced steady economic grincrease in employment rates. Several sectors started experiencing clems in recruiting qualified labour, and in the National Budgetpointed out that the main challenge for the immediate future i

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    the macroeconomic outlooks uncertain. The government has aga1998, readjusted the wage growth figures for 1998, this time fromThe State Budget for 1999, proposed on September 25 1998, into tighten public expenditure. One proposal was to cut the numbone day in order to reduce the pressure in the labour market. This pproposal was seen as a declaration of war against Norwegian em

    ing to a joint statement issued by the trade union confederations.a halt for two hours on 15 October 1998, when the three main federations - LO, AF and YS - took strike action against the prop

    In November, the Norwegian coalition government managreement with the opposition Conservative and Progress PartieBudget for 1999. The agreement meant that the government haearlier suggestions of tax and duty increases, along with controversibenefits. The proposed eradication of an extra days holiday was there will be no changes to the present generous sickness benefit sch

    was largely re-established with the unions.Main spokesmen of the Norwegian LO have stated that th

    in 1998 were too high, and that the 1999 bargaining rounds muthings than pay. An attempt to meet the new situation with mo

    policy has been signalled both from the government and from tmarket parties.

    6.6 Final comments

    So far, estimates for the 1998 bargaining round suggest a wage in6 percent. With an estimated consumer price index increase of indicates a substantial growth in real wages. After the 1996 settlem

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    of the previous commission. Such an atmosphere might signal a nthe revival of Norwegian income policy concertation, within a malabour market situation that is more uncertain than in a long tim

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    Acknowledgements

    This article is partly based on Fafos reports to the European IndObservatory (http://www.eiro.eurofound.ie/). In addition, the woported by Fafos strategic institute program on labour relations angaining, financed by the Norwegian Ministry of Local Governme

    Development. We wish to thank Jon Erik Dlvik and Hvard Lments.

    References

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    Reegrd, Stein (1996): Norway, in Giuseppe Fajertag (ed.): Cing in Western Europe 1995-1996. Brussels: ETUI

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    Industrial relations in Norway

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    ISBN 82-7422--238-5

    Order no. 925

    Institute for Applied Social Science

    P.O.Box 2947 TyenN-0608 Oslo

    http://www.fafo.no/engelsk/

    This publication consists of two articles. The first is a reprint of the

    Norwegian chapter in Anthony Ferner & Richard Hymans Changing

    Industrial Relations in Europe(Blackwell Publishers 1998). In that

    article, the basic features of the Norwegian model are explained,

    and its evolution is traced from the early origin up till 1996. The

    second article is an updated version of a contribution to the ETUI

    publication Collective Bargaining in Western Europe 19971998(European Trade Union Institute 1998). Focusing on the bargaining

    rounds in 1997 and 1998 and the prospects for 1999, it also reviews

    the level and structure of industrial conflict in Norway. Together,

    these articles should provide a thorough and up to date picture of

    industrial relations developments in Norway.