LO holds national congress

The Norwegian Confederation of Trade Unions (LO) held its four-yearly national congress in May 2005. Among other matters, LO’s position on the issue of a proposed new pensions system was approved at the congress.

The Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) held its national congress on 7-12 May 2005. The national congress is held every fourth year and is LO’s highest decision-making body and an important arena for developing LO’s strategies and policies for the subsequent four years. The most important issue on the agenda was that of deciding on LO's position vis-à-vis the forthcoming revision of the national pensions scheme. The upcoming general election in the autumn of 2005, and the fact that LO wants a change in government, made their marks on the congress. In advance of the congress, an internal debate on various issues of organisational relevance was also carried out among members.

Elections

The president of LO, Gerd-Liv Valla, was re-elected for another four years. Roar Flåthen was re-elected as first deputy president, while Geir Mosti of the Norwegian Union for Municipal and General Employees (Fagforbundet) was elected second deputy president. The elected leadership of LO now consists of five women and three men - the same as in the preceding 2001-5 period. Approximately 40% of the 300 congressional delegates were women. A decision was also passed at the congress introducing a requirement (if possible) of at least 40% representation of each sex in elections to decision-making bodies and internal committees. This requirement is not made applicable to the individual member unions.

Organisation

No major changes were made to the present organisational structure of LO. Since 1993, LO has been divided into sector-based cartels, including private services and manufacturing industry. With the exception of the cartel in the state sector, which has been in existence for many years and which plays an important role in bargaining in the state sector and in the NAVO semi-state agreement area, these cartels have never acquired an important standing within the LO system. It is now evident that the cartel structure will no longer provide the basis of LO’s organisation in the future. To this end LO has abolished the two cartels in private services and manufacturing industries.

LO will continue with its focus on recruitment. Increased attention will be given to employees with higher education, from ethnic minorities, and in the private service sector.

A potentially contentious issue at the congress concerned the membership jurisdiction of affiliated unions with regard to employees in deregulated public enterprises. At the heart of this issue lies the question as to which of LO’s member unions are to be allowed to conclude collective agreements on behalf of these groups of workers. In recent years there has been significant disagreement within LO on this matter, between public sector unions - which want to retain their members even when their employment relationships are transferred to deregulated enterprises - and unions in the private sector arguing that these workers should be transferred to their unions. The issue has been considered by an internal working group, with representation from LO’s member unions. The working group reached a compromise on the issue prior to the national congress. The Norwegian Union for Municipal and General Employees - which stands to lose many members as a result of deregulation or privatisation of municipal enterprises - received support for its demand that privatisation/deregulation, in any form, should not lead to a weakening of collective agreements, or pay and working conditions. The working group also point to existing (voluntary) mechanisms, which may be employed in cases where agreement and organisational boundaries are blurred. Although the proposal is unlikely to solve all future conflicts, it has created calm around an issue that generated significant animosity at the congresses of 1997 and 2001 (NO9705110F, NO9807179N and NO0105132F).

Pensions

The most important and controversial issue on the agenda during the congress was that of taking a decision on LO's stance on a future revised pensions system. The political parties have worked to achieve an agreement on the main principles of a new pension system in the course of spring 2005 (NO0501102F). In advance of the national congress, LO’s executive committee presented a proposal on the matter, which was subject to consideration and a vote among the delegates. A key demand of LO is to make employment worthwhile in this context, with even low-paid employment providing higher pensions than employment inactivity. LO also demands that the present agreement-based early retirement scheme (AFP) should be maintained, and that the state should continue its financial support of the scheme. LO further proposes an occupational pension for all employees presently not covered by such schemes, and the preservation of existing public sector occupational pension schemes. A number of more controversial principles have been incorporated into the executive committee’s proposal, including the possibility to raise the normal retirement age (67 years) if the average life expectancy increases, as well as a principle whereby the pension is adjusted according to a calculated average of price growth and wage growth (ie not a pure wage growth indexation mechanism). The proposal on pensions led to significant debate at the congress, and a somewhat revised proposal was approved though with a relatively large minority (40%) opposed.

The proposal was in line with the position of the Norwegian Labour Party (Det norske Arbeiderparti, DnA). DnA is the largest opposition party, and a central participant in the political discussions on pensions. On 19 May 2005 ,the three parties that form the present centre-right coalition government - the Conservative Party (Høyre), the Christian Democratic Party (Kristelig Folkeparti, KRF), and the Liberal Party (Venstre) - reached a compromise on the pensions issue with the DnA, as well as the Centre Party (Senterpartiet, SP). The LO president was very satisfied with the compromise and stated that LO’s most important demands have been met.

Other issues

Another important issue discussed at the LO congress was 'social dumping'- ie employees from the new EU Members States working in Norway and being paid less than normal in that country. This is an area to which LO and its member unions will direct efforts in the coming years. LO intend to develop its own plan of action with a view to making sure that Norwegian pay and employment conditions provide the basis for all employment relations in Norway. Thus, LO will work to strengthen both the legal framework and regulations in collective agreements to prevent social dumping.

The LO congress also considered a range of other issues that will be on the agenda in the coming four-year period. There is a wish to introduce pilot schemes with a six-hour working day, as well as to review present arrangements for, and experience with, employee participation and co-determination.

Comments

With the exception of pensions, the LO congress was only to a limited degree marked by internal conflict and controversies. Nor were significant alterations made to LO’s policies or organisational structure. The 2005 congress was also to a large degree coloured by the upcoming general election in the autumn of 2005, and LO’s wish to achieve a change of government. This was made evident by the fact that both the leader of the DnA, Jens Stoltenberg, and the leader of the Socialist Left Party (Sosialistisk Venstreparti, SV), Kristin Halvorsen, were invited to speak at the congress. The two parties intend, in cooperation with SP, to form a coalition government if between them they receive a majority of votes in the election. To this end, the LO national congress also approved a grant of NOK 2,750,000 to DnA’s election campaign and NOK 75,000 to SV. Earlier in the spring of 2005, Ms Valla rejoined DnA’s executive committee. The LO leader had for the past two years not sat on this decision-making body, as had been the tradition until very recently, which in many quarters had been interpreted to signify a wish, on her part, to create greater distance between the two important parts of the Norwegian labour movement (NO0105132F). The fact that this relationship is still close was made clear in connection with the pensions issue. DnA accepted in large parts the proposal put forward by LO, and the compromise reached between the political parties met on the whole LO’s primary demands, at least when compared with the original proposal. However, LO had also incorporated into its proposal a number of principles regarded as essential by the DnA in order make necessary adjustments to the pensions system. (Kristine Nergaard, FAFO Institute for Applied Social Science)