New HSH-YS agreement for service sector criticised by LO union

On 21 April 1999, the Commercial Employers' Association (HSH) and the Confederation of Vocational Unions (YS) reached a deal in the negotiations to renew their agreements in Norway's service sector. The leader of the largest service sector union affiliated to the Norwegian Confederation of Trade Unions (LO) responded negatively to the fact that HSH had concluded its negotiations with YS before its negotiations with LO had been completed.

The pay negotiations between those trade unions affiliated to the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) which organise employees in the service sector, and the Commercial Employers' Association (Handels- og Servicenæringens Hovedorganisasjon, HSH) came to a standstill on 20 April 1999. These negotiations include, among others, employees in the wholesale and retail trade sector. LO Service, the LO cartel negotiating on behalf of these unions, did not accept the proposed pay increase of NOK 1.20 per hour - the same increase that was awarded to low-paid groups in the spring 1999 agreement reached between LO and the Confederation of Norwegian Business and Industry (Næringslivets Hovedorganisasjon, NHO) (NO9904126F). The Norwegian Union of Employees in Commerce and Offices (Handel og Kontor, HK), which is affiliated to LO, believes that there is room for greater increases within the framework of 4.5% set prior to the 1999 negotiations (NO9903120F). HK claims that the wholesale and retail trade sector has witnessed a lower pay carry-over from previous agreements than in other bargaining areas. The employer side does not accept this argument.

The day after the break in the negotiations between LO Service and HSH, the Confederation of Vocational Unions (Yrkesorganisasjonenes Sentralforbund, YS) and HSH managed to reach an agreement in their parallel negotiations. YS accepted the offer of a NOK 1.20 per hour rise, which had been rejected by LO Service. The YS-HSH agreement also includes the same provisions on the proposed skills and training ("competence") reform as agreed by LO and NHO earlier in spring 1999. Both HSH and YS believe that the increase of NOK 1.20 per hour will generate a growth in pay of approximately 4.5%.

The present situation will make the mediation which will now follow in the wholesale and retail trade sector complicated. The agreements between HSH and LO have normally set a precedent for other agreements in this sector. This is due to the fact that LO has approximately 25,000 members in HSH-affiliated companies, while YS has only 2,000-3,000. The leader of HK, Sture Arntzen, stated that YS should have delayed its negotiations with HSH until mediation between HSH and LO Service had been completed, and argued that this is a departure from normal practice. Mr Arntzen is also critical of the fact that YS has acquired a renegotiation clause, which would ensure new negotiations if LO Service were able to gain additional pay increases at a later date. Such clauses are normal in the public sector, but have not been a common phenomenon in the private sector.

Once mediation starts, the parties may only request its termination after 10 days, and the State Mediator then has four days before possible industrial action may be taken.