Union congress focuses on pensions and social dumping

The Norwegian United Federation of Trade Unions held its national congress in October 2007. One of the main issiues was to formulate the union’s demands for discussion at the 2008 renegotiations of the agreement-based early retirement scheme. Also discussed at the meeting were issues such as social dumping, which is threatening wages and working conditions in certain sectors of the economy. A majority voted in favour of a Norwegian veto against the EU services directive.

The Norwegian United Federation of Trade Unions (Fellesforbundet) held its national congress in Oslo over a period of several days from 5–11 October 2007. Fellesforbundet is Norway’s second largest employee organisation, and the largest private sector trade union. The union represents workers in a number of economic sectors, such as iron and metalworking, shipbuilding, pulp and paper, textiles, graphics and construction. In the autumn of 2007, the Hotel and Restaurant Workers’ Union (Hotell- og Restaurantarbeiderforbundet, HRAF) joined Fellesforbundet, bringing the latter to a total of approximately 160,000 members.

Agreement-based early retirement pension

One of the central issues at this year’s national congress was the demands to be raised by Fellesforbundet in relation to the reform and development of the agreement-based early retirement scheme (Avtalefestet Pensjon, AFP). This system enables employees in companies covered by collective agreements to retire early from the age of 62 years; however, the scheme is to be renegotiated in connection with the wage settlement in the spring of 2008.

Any future AFP scheme has also to be adjusted to the new pension system that is currently being developed (NO0501102F, NO0604019I, NO0611019I); a joint committee is deliberating how and in what form the AFP scheme may be continued (NO0707019I). Although the government is an important player in the process of establishing a new scheme, agreement on AFP will form part of the final collective agreement that is to be subject to approval by a trade union members’ ballot. A pension result acceptable to the unionised employees thus becomes a central component of reaching new collective agreements for 2008.

A local shop stewards ‘action group’ called on the national congress to prepare a detailed set of demands to be negotiated in the 2008 wage settlement, while the leadership of Fellesforbundet wanted to see a less binding negotiation mandate. The final decision on the matter was very much a compromise. Consensus was reached on demanding an AFP scheme which would be as beneficial to those retiring early as the present system. At the same time, the trade union members also agree that employees who continue to work beyond the age of 62 years shall be rewarded in the form of a better pension. If Fellesforbundet’s demands are met, it means that the state will have to accept increased costs on its behalf as part of a future pension system.

Social dumping

The national congress also discussed measures to be taken against social dumping or substandard wage and working conditions. The trade union represents workers in sectors where many employees come from the new EU Member States, and experience shows that these groups are often subject to wage and working conditions that are far below the standards of Norwegian workers (NO0609039I, NO0704019I, NO0705019I). In light of this, Fellesforbundet and the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) have demanded and received approval for an extension of the collective agreement’s wage and working time provisions within the construction sector (NO0612029I).

Fellesforbundet is now presenting a similar demand for parts of the manufacturing sector. A particular challenge connected with such an extension is the monitoring of compliance with these regulations by foreign temporary work agencies and sub-contracting companies. Therefore, Fellesforbundet wants to see the commissioner of the work or main contractor being made responsible for ensuring lawful wage and working conditions.

Significant disagreement arose regarding the position to be taken by Fellesforbundet on the issue of implementing EU Directive 2006/123/EC on services in the internal market. The Norwegian government is currently assessing the consequences of implementing the services directive, and the regulation is expected to undergo another round of hearings before the parliament (Stortinget) makes any decision on implementation. This will provide the social partner organisations with another opportunity to present their views on the issue.

At the Fellesforbundet congress, the trade union leadership argued initially that the service directive will not hinder the Norwegian government from taking measures to combat social dumping; therefore, the union leaders did not recommend a Norwegian veto against implementing the directive. On this issue, however, the leadership failed to gain approval from the congress delegates; a majority voted in favour of a veto against introducing the directive in Norway.

New union president

The trade union federation also elected a new president to succeed Kjell Bjørndalen who had reached retirement age following 16 years as the leader of Fellesforbundet. The Vice-President, Arve Bakke, was chosen as the new president of the federation. The elected leadership consists of five representatives: four men and one woman.

Kristine Nergaard, Fafo Institute for Applied Social Science