Outsourcing, Procurement, Central government, Norway

Trade unions across the three confederations – LO, YS and Unio – have negotiated changes to the main state agreement that regulates the relations between unions and the government. With many government agencies facing restructuring, the unions are pleased that the new agreement, that runs until 2025, will strengthen co-determination and ensure trade unions are involved in tackling change and the introduction of, for example, new digital tools and processes. The agreement also reinforces the commitment of both sides to address sustainability and climate change and has clearer wording around

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 trade unions in the state sector represented by Lo Stat, Unio and YS Stat broke off negotiations at the end of April and are waiting to see what mediation delivers on 23 May. The three groups of unions want to see action to compensate for recent pay trends where pay in the state sector has not kept pace with developments in the private sector. LO Stat unions have already set out plans for industrial action if mediation fails to deliver. Along with a general pay increase they also want to see action to reduce gender pay inequality and are concerned that the state sector’s preference for

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

Public service unions, including Fagborbundet and the nurses' union, are hopeful that 11 privatised care homes in Oslo will be back under municipal control in the next two years as their contracts come to an end. The red/green coalition on the city council has given positive signs but the unions are concerned it may use an option to extend contracts by one or two years. The unions argue that any delay will be costly to the workers. They give the example of a care home in Uranienburg which was privatised in 2013 and then remunicipalised but workers in the home had lost out with annual salaries

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.

The Fagforbundet public service union is continuing to pursue legal action against the Aleris care company which it believes has major implications for labour rights in Norway. The company is being challenged over using self-employed workers that it calls "consultants" rather than directly employing care staff. The "consultants" have no employment rights and have been forced to work long hours of overtime, including up to 72 hours without a break, for fear of being denied work. They have no sickness or pension benefit or protection against dismissal. Aleris Care is now part of the Ambea group

The Oslo District Court has rejected the attempt by the Aleris multinational care company to use European law to prevent workers claiming their rightful status as employees. Thirty-seven workers, supported by the Fagforbundet trade union, have launched legal proceedings against the company which has denied them employment rights by classifying them as consultants rather than employees (see epsucob@NEWS 16 and 17, 2018). The trade union accuses the company of trying to intimidate individual workers and employing teams of highly-paid lawyers to try to block their claims in the court. A case

On 20 November the government announced compulsory arbitration to end a dispute between the NSF nurses' union and the NHO private employers' organisation. The union had called a strategic strike of 55 nurses on 25 October to protest against the NHO agreement having lower minimum pay and sickness benefit rates compared to the agreement negotiated with municipal employers. NSF has found examples of nurses' annual salaries in NHO employers that are NOK 30000-100000 (EUR 3200-10000) lower than in the public sector. After three weeks of strike action the NHO imposed a lockout on all 501 NSF members

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

State sector trade unions called off planned strike action following an improved pay offer from the government. The main increase on annual salaries will be a flat-rate rise of NOK 5100 (EUR 535) while workers on higher pay rates will get a 1.25% increase. There will also be 1.9% of the paybill allocated to local negotiations. Abolition of the two lowest pay grades will help lower paid workers while there are also improvements to payments for unsocial hours and a higher threshold for pensionable pay.

Public sector unions have negotiated a new public sector-wide pension scheme that they are recommending to members who will vote on whether or not to accept the new arrangements. The scheme will be introduced from 2020 for all workers born in 1963 or later. The unions are pleased with the result which they say produces a gender-neutral scheme and will see members earning pension entitlement on all their earnings from day one of employment. There will also be early retirement provisions for those who need it.