In February 2011, the Norwegian Technical Calculation Committee for Wage Settlements (TBU [1]) presented its wage growth figures for 2010 (from 2009 to 2010). The TBU provides annual figures on wage growth for Norwegian wage earners as a whole, as well as figures for different subgroups and industries. The first of the two annual reports is made public prior to each year’s wage settlement negotiations, and forms an important basis for the claims and concessions made in negotiations.[1] http://www.regjeringen.no/en/dep/aid/Topics/income-policy/midtspalte/the-technical-reporting-committee-on-inc.html?id=439434
Norwegian wages increased by 3.75% between 2009 and 2010. Norwegian wage earners, on average, saw a growth in real wages after tax of 1.25% during this time. Wage growth was at its highest in the finance sector whereas manufacturing industry workers witnessed a wage growth of 3.6%. The average pay difference between female and male full-time employees fell by 0.5 percentage points from 2009 to 2010. This pay difference varies widely from sector to sector, however.
Introduction
In February 2011, the Norwegian Technical Calculation Committee for Wage Settlements (TBU) presented its wage growth figures for 2010 (from 2009 to 2010). The TBU provides annual figures on wage growth for Norwegian wage earners as a whole, as well as figures for different subgroups and industries. The first of the two annual reports is made public prior to each year’s wage settlement negotiations, and forms an important basis for the claims and concessions made in negotiations.
Wage developments in 2010
The average wage is estimated to have increased by 3.75% from 2009 to 2010. This is down from 2009, when overall wage growth was 4.5%. Wage growth in companies affiliated to the Confederation of Norwegian Enterprise (NHO) is estimated to be 3.6% for blue-collar workers in manufacturing and 4.3% for salaried employees (see table below). Wage growth in retail trade is estimated to be 3.6%, while employees in the finance sector witnessed average wage growth of 5.9%. In the public sector, central government stands out with the highest wage growth rate at 4.5%, while wage growth in the municipal sectors and in public hospitals was 3.7%. This difference is partly due to a technical revision of existing statistics, and partly because the working time agreement entered into by the police force in 2009 has had a significant effect on this year’s statistics (NO0908059I).
| Sector | 2010 | 2009 |
|---|---|---|
| NHO member companies in manufacturing industry – blue-collar workers | 3.6 | 3.9 |
| NHO companies in manufacturing industry – salaried employees | 4.3 | 4.5 |
| Retail and wholesale trade, HSH* companies | 3.6 | 1.8 |
| Financial services sector | 6 | 0.4 |
| State sector | 4.5 | 4.4 |
| Municipalities and counties | 3.7 | 4.6 |
| State-owned health enterprises (‘hospital sector’) | 3.7 | 5.1 |
*Refers to companies affiliated to the Federation of Norwegian Commercial and Service Enterprises (HSH)
Source: TBU report 2011 (in Norwegian, 4.65MB PDF)
Wage differences between women and men
In the 2010 wage settlement special emphasis was placed on promoting equal pay between men and women (NO1004019I, NO1006019I), but a complete evaluation of how this has affected the wage gap between women and men in 2010 is not yet available. The initial TBU figures indicate, however, that the pay difference between female and male full-time employees fell by 0.5 percentage points from 2009 to 2010. Full-time female workers earned on average 87.2% of full-time male wages in 2010, against 86.7% in 2009.
Women’s earnings as a percentage of men’s vary considerably between industries and sectors, and the wage gap is at its widest in the finance sector. Here full-time female employees earn, on average, 69.1% of men’s wages. The building and construction sector is the only industry where women on average earn more than men. In this sector the average wage of women is 101.4% of the men’s average wage. However, employment this sector is strongly male-dominated. Other sectors with small wage differentials between women and men include teaching (97.7%) and the municipal sector (93.2%).
The TBU is traditionally cautious in its statements, but does not rule out the possibility that the equal pay initiatives in the 2010 wage settlements may have had an effect. The committee also points out that statistics over the decade between 2001–2010 indicate that there has been narrowing of, or at least relative stability in, wage differences between women and men in most agreement areas. The exception is the finance sector, where the wage gap between women and men has increased.
Management salary development
In recent years the TBU has also presented figures on management salary developments in selected sectors. Salary growth for chief executive officers in companies with more than 10 employees was 4.9% from 2009 to 2010. For managers in small businesses (below 10 employees), salary growth was 3.1%.
The TBU’s report for 2010 also provides figures on salary growth for top management in the public sector. This group witnessed a salary increase of 4.6% from 2009 to 2010. Pay growth for managers was somewhat higher than for other groups of employees in the central and local government sectors.
Real wage growth
From 2009 to 2010 real wages rose by 1.25% after tax (for employees with an average wage in 2009), compared with 2.1% in the previous year.
Kristine Nergaard, Fafo
Eurofound recommends citing this publication in the following way.
Eurofound (2011), Norwegian wages rose 3.75% in 2010, article.
