In May 2004, strikes occurred in five private sector bargaining areas in Norway, involving workers in transport, journalism, hotels and restaurants, the graphical sector and breweries. All were settled by the bargaining parties after industrial action of varying length and severity. The most notable characteristic of these conflicts was the diversity of issues subject to dispute - in addition to 'normal' pay matters, the issues at stake included pensions, agency workers and differential treatment of unionised and non-unionised employees.
On 24 May 2004, a strike by transport workers in the wholesale sector ended after almost five weeks of dispute and two attempts at mediation. Also during May, strike action was taken in four other private sector bargaining areas, covering journalists, hotel and restaurant workers, graphical workers and brewery workers. At one stage, almost 8,000 workers were out on strike. The most notable characteristic of these conflicts, and of the 2004 bargaining round so far, is the diversity of issues over which strike action has been taken, because to only a limited extent have traditional pay demands been the main source of conflict. In many areas disputes have grown out of disagreement over 'issues of principle' such as pensions, temporary agency work practices and differential treatment of unionised and non-unionised employees.
Compromise reached in wholesale
The dispute between three transport trade unions and the Federation of Norwegian Commercial and Service Enterprises (Handels- og Servicenæringens Hovedorganisasjon, HSH) ended on 24 May, following almost five weeks of strike action among transport workers in the wholesale sector (NO0404102F). By the end of the dispute, almost 800 union members had been out on strike and almost 1,200 were kept away from their work by a lock-out called in response by the employer side. There were shortages of goods and foodstuffs in many retail outlets and a significant number of employees were laid off, particularly in the food production industry.
The strike action was taken in response to the employers' refusal to accept the unions’ demand for an 'exclusive' pay increase of 1.4% for unionised employees, thus giving them a higher rise than their non-unionised colleagues. Two rounds of mediation failed to bring the parties closer together. Following an intense round of last-minute negotiations, an agreement was reached on an arrangement whereby the employers will pay a one-off sum of NOK 2,000 per employee into a fund to be used for 'cooperative purposes and to strengthen the support of the three trade unions at the company level'. In the event of company-level disagreement over the use of the fund, it may be split between the social partners and used more or less as they see fit at the end of 2005 - although not for the purpose of reducing trade union fees.
Journalists strike over pensions
Occupational pensions were the main issue in the negotiations between the Norwegian Union of Journalists (Norsk Journalistlag, NJ) and the Norwegian Media Businesses' Association (Mediebedriftenes Landsforening, MBL). Most newspapers have occupational pension schemes for their employees, but they are on the whole not enshrined in collective agreements. NJ’s principal demand was the incorporation of occupational pension rights and conditions into the collective agreement, in order to acquire some degree of influence over future developments in company-level pension schemes. This was totally opposed by the employers. Pensions, and changes to occupational pension schemes, are seen by the employer side as falling within the scope of the management prerogative.
Some 2,800 journalists took strike action on 12 May. Following 11 days of conflict, the employers accepted a compromise whereby the newspapers concerned accepted freezing pension schemes for the duration of the revised agreement - ie two years up to 2006. Improved opportunities for company-level pay bargaining for those who do not have occupational pension arrangements was also part of the final agreement, in addition to general wage increases.
Dispute over agency labour in brewing sector
In the breweries sector, around 2,500 employees went out on strike on 19 May, following the breakdown of negotiations between the Norwegian Union of Food and Allied Workers (Norsk Nærings- og Nytelsesmiddelarbeiderforbund, NNN) and the Federation of Norwegian Food and Drink Industry (Næringsmiddelbedriftenes Landsforening, NBL). Here too an issue of principle was at stake. The main point of dispute was a trade union demand for new rules regarding the 'hiring-in' of labour from external employment agencies, whereby union influence over when and to what extent such agency labour may be employed in the companies would be considerably strengthened. This was regarded by the employer side as an attempt to acquire a veto over such decisions, which was regarded as unacceptable. After three days a solution was found, with the employers pledging to cooperate closely with employees on matters concerning hiring practices, and a commitment that disagreements at company level on the interpretation of rules in agreements and the legal framework can be brought before the central social partner organisations.
Pay disputes in graphical and hotel/restaurant sectors
The shortest strike of the bargaining round occurred in the hotels and restaurant sector, in negotiations between the Hotel and Restaurant Workers’ Union (Hotell- og Restaurantarbeiderforbundet, HRAF) and the Norwegian Hospitality Association (Reiselivsbedriftenes Landsforening, RBL). The action commenced on 12 May and ended two days later, with only a handful of employees out on strike. The dispute arose out of disagreement over the character of the proposed pay offer from the employer side, and the extent to which it reflected the 3.5% increase agreed in the pioneering manufacturing industry deal (NO0404101N). Talks between the parties enabled a solution to be found on 14 May, with the employers agreeing to increase their offer, bringing the general pay increases into line with the result of the trend-setting manufacturing negotiation, in addition to increases for those on low wages.
Failure to agree on pay increases also led 560 members of the Norwegian Union of Graphical Workers (Norsk Grafisk Forbund, NGF) in 10 printing and reproduction companies to take strike action on 13 May. Following seven days of action, the Norwegian Federation of Visual Communications Enterprises (Visuell Kommunikasjon, VISKOM) accepted most of NGF's demands. Increases for those on low wages presented the greatest obstacle to reaching an agreement.
Commentary
The strikes in May show that a great diversity of issues have been subject to dispute in the 2004 private sector bargaining round. However, the economic framework for the settlement was subject to dispute only in the hotel and restaurant sector. The emergence of disputes over a range of other issues may owe a lot to the fact that there have been few significant wage demands this year. The present economic situation, with low interest rates and a low inflation rate, suggests that the purchasing power of most employees will be maintained. Moreover, the relatively high unemployment rate in Norway at the moment may also have generated greater acceptance for the economic framework set in the manufacturing industry negotiations in April.
Another feature has been the relatively politicised nature of some of the demands put forward. The occupational pension issue has beyond doubt been partly triggered by the ongoing debate on pensions, which was intensified when a public committee deliberating the future state of the Norwegian pension system delivered its report earlier in 2004 (NO0402101F). Likewise the demand of the NNN trade union for greater influence over the use of hired-in labour must also be seen in light of EU enlargement, and the issue of relaxing the rules regulating the hiring in and out of labour in Norwegian working life (NO0310102F). The demand of the transport sector unions for an 'exclusive' pay increase for their members also led to significant debate. It was rejected by the employers on the grounds that it breached the fundamental principle of the 'negative freedom of association' (ie the right not to join a union). If established, the exclusive union pay rise would doubtless have been a politically controversial principle. Despite not being achieved, the unions' demand has paved the way for other similar issues concerning union membership retention being placed on the agenda in the future.
The strike action so far in the 2004 bargaining round has hit sectors and companies with direct implications for everyday life - newspapers, breweries, food etc - thus giving the impression of an extraordinary number of strikes taking place. However, there is little evidence to support such a belief, with regard to both the number of strikes taking place and the number of working days lost.
It is also worth noting that the all five strikes were solved not through mediation but through a resumption of negotiations. Despite the relatively immediate consequences of the transport sector strike in particular, resolving any of the conflicts by means of compulsory arbitration (NO0210104F) was never really an issue for the government. Indeed, the Minister of Local Government and Regional Development made several public statements indicating the government’s reluctance to take such steps.
The 2004 private sector bargaining round - and strikes in connection with it - may in some ways be seen as evincing the viability and strength of the Norwegian incomes policy model. Despite the fact that negotiations have been carried out at sectoral level, new agreements have been concluded within the framework set by the so-called 'trend-setting' industries, and the disputes have been solved by the social partners themselves. At the same time however, the 2004 bargaining round had also given rise to a debate concerning the viability of the strike weapon in cases that do not involve pay but are of a more principled nature. (Håvard Lismoen, FAFO Institute of Applied Social Sciences)