Local government, Economic Policy, Norway

Fagforbundet and other trade unions in local government have negotiated a new framework agreement which updates the rules and processes regulating the relations between local government unions and employers. The agreement covers continuing discussions about the need to develop the rights of employee representatives and the framework conditions in which they operate, a review of the main agreement to identify provisions that may be out of date or no longer relevant, consideration of how the provisions are applied in practice and to assess the need for amendments. There is also a specific

Five of the six trade unions in the LO Kommune bargaining group agreed to back the mediation proposal for municipal workers that was finally delivered on 24 May, averting strikes across the sector. The largest union in the sector, Fagforbundet, reported that the agreement would deliver increases on annual salaries of between NOK 12000 (€1165) and NOK 16800 (€1635). The settlement was ahead of that achieved in manufacturing this year, as the unions had pushed for a better deal to allow catching up on the lower settlement in 2021. The agreement also provides for increased night and weekend

The continuing demands imposed by the COVID pandemic are being addressed by municipal trade unions and employers through a new agreement setting out rules on overtime. The agreement will be applied locally if agreed between the local union and employer and provides for higher overtime rates and limits on overtime hours. Overtime rates are increased to 200% on normal days and 300% on weekends and holidays. The rates also apply to part-time workers above 20 hours a week. The agreement sets a range of daily, weekly and monthly limits to overtime hours.

The UNIO trade union confederation whose members cover workers with higher education has been pushing for higher pay deals in three negotiations – national local government, Oslo municipality and public companies represented by the employers’ organisation, Spekter. The NSF nurses’ union is one of UNIO’s members involved in the strikes and negotiations and they are calling for higher pay for nurses to tackle major staff shortages. The government has stepped in to end strikes in local government and the Oslo municipality on the grounds, rejected by the trade unions, that the actions pose a

After lengthy negotiations, arbitration in the municipal sector has produced a deal supported by the trade unions. The overall package is worth 2.82%, slightly ahead of inflation and above the 2.7% in the industry sector which is normally seen as setting the pattern for pay bargaining. Pay increases range from NOK 10000 (EUR 980) a year to NOK 22000 (EUR 2150). There is a pot worth 1% that will be dealt with by local negotiations which will aim to contribute to retaining, developing and recruiting staff and acknowledging increased formal and informal competence development. It will also

Tough bargaining in both the state and municipal sectors have ended up in mediation as employers fail to get close to the unions’ key demands. In the state sector unions were already concerned about the increasing gap between the low and high paid and the prospect of pay increases negotiated mainly at local level were seen as increasing the likelihood that the lower paid would again lose out. Public sector unions support the system where industry settlements set a benchmark and note that last year state workers got 0.5% less than the private sector. However, they also argue that the public

Negotiations over pay are getting underway in the state and local government sectors with unions seeking to protect their members’ purchasing power and focusing on support for the lower paid. While unions agree that the system where the industrial sector sets the trend for pay bargaining is the right one, negotiations in the public sector need to address how pay trends have affected different occupations. This means there are arguments for a flat-rate increase that will benefit the lower paid, including the often undervalued groups like cleaners who have played a key role in coping with the

Negotiations are underway in local government and while unions are aiming for a real pay increase they are also setting their sights on improvements in other working conditions. They want more investment in competence development and training during working time. However, a key demand is for more full-time work. Around two thirds of health and social care workers and 40% of those in childcare and education work part-time. Unions argue that this does not make the sector attractive and that full-time hours are needed to deliver decent pay. They also point to the benefits to the quality of

The main municipal unions in the Nordic region - Fagforbundet (Norway), Kommunal (Sweden), JHL (Finland) and FOA (Denmark) - have called on government and municipal employers to work together with unions to tackle the impact of the COVID-19 crisis. They argue that local and regional authorities need the finance to maintain jobs as well as the pay and condition of the municipal workforce and that these will be crucial to the economic recovery. The unions stress above all that austerity cannot be the answer and that the contribution of municipal workers should be recognised with funding for wage

The Fagforbundet public service union has underlined that it wants to maintain its key priorities for the pay bargaining round that has been deferred to the autumn. The union aims to address the situation of skilled workers who have fallen behind on pay in recent years. It also wants to see the work done by many public service workers during the pandemic properly recognise, stressing that it may not be appropriate to target specific occupations as many services are provided by team work and so it would not necessarily be fair to reward some and not others. Fagforbundet is aware of the

The Fagforbundet public service union reports that over a third of the country's municipalities have adopted a variety of measures to reduce the risk of social dumping. These include requirements to employ permanent employees, for pay and working conditions that correspond to the sector agreement in the industry and specific numbers of skilled workers and trainees. They also cover tax matters and the prohibition of cash payments, limits on the number of subcontractors, regular monitoring of contracts and the right of local authorities to audit the contractor and sub-contractors.

Local government unions are generally pleased about the outcome of negotiations over pay which will see most workers benefit from pay increases of 3%-3.5%.Unions have been keen this year to ensure that competences and education are properly rewarded in a context where there is recruitment pressure for skilled workers. Basic pay will rise, for example, by NOK 14000 a year (EUR 1440) to NOK 41000 (EUR 42200) for workers with a three-year college education while those with one-year vocational training will see basic pay rise by NOK 13000 (EUR 1340) to NOK 372800 (EUR 38380). The unions say that

Trade unions preparing for pay negotiations in the local government sector are looking to secure a real pay increase for all workers. Their other key aims include higher increases for lower paid workers and action to reduce the gender pay gap with workers in sectors dominated by women particularly targeted. The unions argue that with unemployment down municipal workers should benefit from positive economic developments. They also want to see a proper recognition of skills and competences noting that there is a shortage of staff in some occupations and that in recent years some categories of

The Fagforbundet public services union is working to ensure that its members benefit from provisions in collective agreements - in this case in the municipal sector and covering childcare - that ensure that workers are paid the appropriate wage for their experience and qualifications. Workers can get up to six years of service-related pay if they have been away from work because of caring responsibilities. Migrant workers can also get qualifications and experience from other countries taken into account. The union gives the example of a childcare worker from Lithuania who saw a NOK 104000 (EUR

The Fagforbundet public service union has revealed figures showing that care workers in the private sector in Oslo are between EUR 7000 and EUR 8700 worse off than those in the public sector. A starting salary for a graduate care worker in the public sector is NOK 367000 (EUR 38500), NOK 84000 more than the same worker in the private sector. Those on minimum wages in the sector are EUR 7000 better off if employed by the municipality. Fagforbundet also says that private sector workers are more likely to face heavier workloads as a result of understaffing. Fourteen of the 40 care homes in Oslo