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Industrial Relations in Norway: Evolution and Importance of Collective Agreements

Explore the historical development of industrial relations in Norway, focusing on the establishment of the Confederation of Norwegian Enterprise (NHO) and the importance of collective agreements in terms of social dialogue, wage formation, and conflict resolution.

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Industrial Relations in Norway: Evolution and Importance of Collective Agreements

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  1. Industrial Relations in NorwayPresentation, NBBG 1 June 2017Henrik Munthe, Confederation of Norwegian Enterprise (NHO)

  2. CAs in a brief historical view – the starting point • Confederation of Norwegians Enterprise (NHO) was established in 1900 • An answer to the creation of LO (1899) • Same organizational structure as LO • The first national Collective Agreement (CA) at branch level concluded in 1907 • Mainly about terms and conditions • But also the starting point for social dialogue • This CA is still the "mother" of all our CAs for blue collar workers

  3. The next step – development of social dialogue • In 1935 LO and NHO concluded a separate CA for Social Dialogue • Purpose: creating a common understanding for the need of improving work conditions for the employees and economical performance for the companies • This Basic agreement is still recognized as the "the constitution of work life" in Norway • First part of all CAs [Presentasjonsheading]

  4. The Basic Agreement ”The constitution” of work life in Norway • Negotiated between NHO and LO every 4th year for private sector • Contents: • negotiation procedures and conflict solving procedures • rights/obligations of shop stewards • Workers’ involvement; cooperation, information, consultation rights • No regulations of terms and conditions (not a single word on wages!)

  5. Wage formation in Norway • No national minimum salary • For somesectorstheGovernment makes theactual CBA temporarymandatory for all companies operating withinthesector (shipbuildig, construction and agriculture) • Approximately 50 procentofemployees (whitecollar) in private sector have individualsalaryagreeddirectlywith management. • The roleoftheir union is to locallynegotiatewiththeemployerthe total increaseofthesalarybudget for theirmembers. • The national CBA givesthe right to negotiate – a frameworkagreement • Centralizednegotiations • General minimum increase • Minimum salaryadjustments • CBA signed – localnegotiations starts

  6. Disputes of interest • Dispute on the future content of a collective agreement • The Labour Disputes Act provides rules of procedure for conflicts of interest • Collective agreements are negotiated every second year. Following negotiations and compulsory mediation, industrial action (strike/lockout) may take place [Presentasjonsheading]

  7. Dispute of rights • Dispute on the interpretation of an existing agreement • Negotiations at various levels as stipulated in the Basic Agreement must be conducted • If the dispute is not settled by negotiations, it will be brought before the Labour Court for final decision • Peace obligation: No right to strike at any time [Presentasjonsheading]

  8. What's the Value Added for the Employers ? • CA is an efficientwayofmanagingthework force • According to law a CBA constitutesregulationofworkconditionsalso for non-unionizedemployees • Industrial Action (egstrike) prohibited as long as the CA is in force • Right to Industrial Action on CA Branch level (national) only • Sharing risks for strike – givespower in thenegotiations • Commonframework/cost base • Workhours, shiftpayment, holidayentitlementsetc

  9. What's the Value Added for the Employers ?cont. • Withinthe "framework" oftheCA management and shop steward have freedom to enterintolocalCAs. • Approval from the Trade Union not requested. • wageformation/distribution and yearlyincreases (approx. 2/3 ofyearlyincreasesagreedlocally) • Shiftschemes, jobrotation, training, workwearetc • The system provides solid conflict solving processes accepted by both parties (our Basic Agreement). • Disputes of interest • Disputes of rights • Positive involment from theemployees and their shop stewars in building a safe and sustainable business

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