In April 2006, following difficult negotiations, the social partners in the private transport sector concluded revised collective agreements for bus drivers, freight transport workers and for environmental and refuse disposal workers. The agreement provides for substantial wage increases for transport workers, in addition to a pay improvement plan for bus drivers, whose wages had fallen behind those of traditional manufacturing industries in recent years.
On 21 April 2006, the social partners in the private transport sector concluded revised collective agreements for bus drivers, freight transport workers and for environmental and refuse disposal workers. Following two weeks of difficult negotiations, and subsequent mediation, agreement was reached providing for substantial wage increases for transport workers. The social partners also agreed on a pay improvement plan for bus drivers, to be implemented incrementally over the next few years, in order to bring their wages in line with those in traditional manufacturing industries. Although the social partner organisations at national level have approved the mediators’ proposals for the new agreements, they still have to be approved by ballot of the trade union members.
Role of mediation in negotiation process
Bargaining in the transport sector commenced in late March 2006, with joint negotiations between the Norwegian Transport Workers’ Union ( Norsk Transportarbeiderforbund, NTF) and the Union of Transport Company Employees ( Yrkestrafikkforbundet, YTF) on one side, and the Federation of Norwegian Transport Companies ( Transportbedriftenes Landsforening, TL) and the Norwegian Hauliers’ Association ( Norges Lastebileier-Forbund) on the other. The negotiations involved amending three agreements: the agreement for scheduled transport companies, the agreement for environmental and waste disposal companies, and the agreement for freight transport companies. The two trade unions, which have traditionally been in competition with each other, continued to work together on collective bargaining ( NO0404102F).
Pay was the most important issue on the agenda of this year’s negotiations. The unions sought to raise the general wage level of transport workers, with a view to bringing it into line with the average wage level in traditional manufacturing industries. The wage growth of transport sector workers, and in particular bus drivers, has fallen behind in relative terms over a number of years. Hence, the unions called for a substantial increase of their members’ wages, equalling around NOK 40,000 (€5,120).
The employers, as anticipated, rejected the initial demands of the trade unions, although they recognised the need to do something about the wage situation of transport workers in Norway, particularly that of bus drivers. There is a general consensus within the industry that recruitment in the profession is suffering because of declining occupational status and poor wage developments.
Following two days of mediation, the mediator presented new proposals on which the two sides could agree.
Outcome
The outcome of the most recent negotiations is regarded as being favourable for workers in the transport sector, particularly bus drivers. It includes a relatively substantial wage increase for a large number of these workers, in comparison with other groups in the Norwegian economy. A general increase of NOK 5.50 (€0.70) per hour has been awarded to all of the employees included under the agreements, which is significantly higher than the general pay increase of NOK 1 (€0.13) per hour recommended in manufacturing industry negotiations earlier this year (NO0604019I). An additional NOK 4 (€0.51) per hour has been awarded to bring the wages of transport workers closer to other groups. All negotiations take place at the national level, without additional negotiations at company level, which is common elsewhere in the private sector.
The social partners also decided to establish a joint sectoral agreement for bus drivers, which will come into effect from 1 April 2007. The implication of this is that virtually all agreements for bus companies will be identical, regardless of whether they are organised within TL (private sector) or the deregulated employer organisation NAVO. All of the parties recognise that the pay level of bus drivers must be raised ‘to a level in line with the average wage of manufacturing industry workers’. This plan will be implemented incrementally, although no time frame has been set. Media speculation suggests a period of five years. It was also agreed that a proportion of the increases given are to be conditional on presentation of documental evidence of competence development.
The initial phase of the pay improvement plan for bus drivers is an agreed wage increase of NOK 3.50 (€0.45) per hour from 1 January 2007 or later. This increase will be successively awarded to employees in companies acquiring new contracts for operating bus services or where old contracts are renegotiated. It is only applicable in relation to companies operating scheduled bus transport services; this includes services mainly commissioned by municipal and county municipal authorities, and/or run by bus companies receiving public subsidies. Thus, it seems that the financial burden of the most recent increases may partly fall on the municipal and county municipal authorities. The joint agreement will also lead to a narrowing of the wage gap and other differences in working conditions that exist between public and private sector bus drivers in TL.
Håvard Lismoen, Fafo, Institute for Labour and Social Research