Temperature rising prior to wage settlement

On 4 February 2000 the Norwegian government's contact committee on incomes policy met to discuss the general outlook for the national economy and the forthcoming pay round in spring 2000. The Prime Minister pledged at the meeting to continue the current early retirement scheme, and emphasised that there will be no favourable treatment of particular groups during the settlement.

On 4 February 2000, the Norwegian government's contact committee on incomes policy met to discuss the general economic outlook and the forthcoming wage settlements in spring 2000. The committee's rationale is to ensure contact and information exchange between the social partners and the government, and all the major trade union and employers' organisations are represented on the committee (NO9908145F). A meeting of the contact committee is a common procedure prior to pay bargaining rounds. This year's meeting took place in an atmosphere of significant tension and dispute over the proposed economic framework for the pay settlement, which has been called into question in recent months. The overall goal of reducing annual wage growth in Norway to the level of its main trading partners (NO9903120F) means that the 2000 pay round must occur within a tight framework. At the same time, some groups in the public sector have called for significant wage increases on the grounds that they have lagged behind in previous settlements, leading to significant problems in recruiting qualified personnel (NO0001174F). These groups include nurses and teachers, and they have managed to garner support for their demands from several important politicians. When the Prime Minister, Kjell Magne Bondevik, was quoted as having expressed sympathy for the demands of these groups ( in the Dagens Næringsliv newspaper on 20 January 2000), he received strong criticism from the leader of the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO), Yngve Hågensen. Mr Hågensen protested against what he regarded as an improper government intervention in the wage settlement. He further stressed that LO's support for a moderate settlement will be withdrawn if some groups are exempted from the requirements of moderation.

It seems that the meeting of the contact committee has contributed to calming the fears of Mr Hågensen, but also to stirring up emotions among the groups hoping for significant increases during bargaining. The Prime Minister stated after the meeting that he agreed that negotiations for teachers and nurses should be carried out on the same basis as for other groups (quoted in the Aftenposten newspaper on 4 February 2000). The leader of the Confederation of Norwegian Professional Associations (Akademikernes Fellesorganisasjon, AF), Aud Blankholm, argues that this will nevertheless not prevent these groups from demanding extra wage increases. The Prime Minister further stated that the current agreed early retirement scheme (AFP) (NO9704108F) will not be altered during the period of the forthcoming agreements (2000-2). The government has previously argued in favour of altering the arrangement, bringing significant opposition from the unions, especially LO.