New agreements concluded in public sector and wholesale/retail trade

New collective agreements were concluded in Norway in late April and early May 2003 for the wholesale and retail trade, the central state sector and the municipal sector. Groups in wholesale and retail with a low average wage were awarded wage increases, but no pay rises were agreed in the state and municipal sectors, where many workers will see their wages increase in 2003 due to agreements concluded in 2002.

On 30 April/1 May 2003, collective agreements were concluded without any resort to industrial action in three major bargaining areas: the wholesale and retail trade; the central state sector; and the municipal sector. Agreements had already been reached on 3 April for employees in manufacturing, building and construction, private transport and hotels and restaurants, signed by the Confederation of Norwegian Business and Industry (Næringslivets Hovedorganisasjon, NHO), the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO), for blue-collar workers, and the Confederation of Vocational Unions (Yrkesorganisasjonenes Sentralforbund, YS), for white-collar employees (NO0304101N). The 2003 wage round is an 'intermediate' settlement, ie the negotiations are concerned only with revisions to the wage rates in the two-year national agreements concluded in 2002 (NO0206105F).

Wage negotiations between LO and YS, on the one hand, and the Federation of Norwegian Commercial and Service Enterprises (Handels- og Servicenæringens Hovedorganisasjon, HSH), on the other, cover mainly employees in the wholesale and retail trade. Under the new agreement, some shop and sale assistants receive a pay increase of NOK 1.25 per hour from 1 April 2003, which represents an annual increase of NOK 2,436 for full-time employees. This increase is awarded to employees with an annual wage of NOK 206,000 or below, and LO estimates that it involves approximately 25% of all employees in this bargaining area. All employees covered by the agreement for wholesale commerce receive an increase of NOK 1.50 per hour. The Norwegian Transport Workers' Union (Norsk Transportarbeiderforbund, NTF) wanted to see higher wage increases given to unionised employees than to non-unionised employees. This demand was rejected by the employers and NTF thus did not endorse the new agreement. However, the majority of LO's bargaining committee approved the deal, which is also expected to be accepted by the LO executive committee.

In the public sector, new agreements were reached in both the state and municipal sectors on 1 May. However, negotiations in the municipality of Oslo, which is an independent bargaining area with its own agreement, culminated in compulsory mediation. Not counting Oslo, the public sector agreements have been endorsed by all the parties on the trade union side - ie the relevant bargaining cartels in LO, YS, the Confederation of Higher Education Unions (Utdanningsgruppenes Hovedorganisasjon, UHO) and the Federation of Norwegian Professional Associations (Akademikerne).

No further wage increases were awarded in the state or municipal sectors in the 2003 negotiations. In the municipal sector, many employees will nevertheless receive significant increases in 2003 as a result of the agreement reached in 2002. Estimates suggest that this will provide employees in the municipal sector with an overall wage growth of around 4.6% in 2003. Similarly, the results achieved in 2002 in the state sector will also have a significant bearing on the wage growth rate in 2003, generating an average wage growth among state sector employees well above the results expected in bargaining areas in the private sector. Because of this, trade union negotiators admitted that further increases in 2003 were not within reach. They also pointed to the recent national incomes policy compromise in which all the parties committed themselves to pursue a moderate wage settlement in 2003 (NO0302105F).

In both the state and municipal sectors, however, negotiations over wage increases may be taken up again in early 2004, if it becomes evident that wage development in the public sector is much lower than the average growth rate among blue- and white-collar workers in manufacturing industry. Such an assessment will be based on wage statistics from the Technical Calculating Committee on Incomes Settlements (Teknisk Beregningsutvalg for Inntektsoppgjørene, TBU). Any possible increases will take effect from 1 January 2004.

In several bargaining areas, joint working committees have been set up to consider issues relevant to future wage settlements. In the municipal sector, the parties are to consider matters such as: ways to reduce involuntary part-time work; problems relating to the municipal pension provider, KLP (NO0211105F); and possibility of introducing a low-wage guarantee similar to that which exists in the private sector. LO and HSH will continue their work to establish occupational pension schemes, and have agreed to evaluate progress in the autumn of 2003.