Breakdown of negotiations between NHO and YS over new Basic Agreement

In December 1997, negotiations broke down over a new Basic Agreement between the Confederation of Vocational Unions (YS) and the Confederation of Norwegian Business and Industry (NHO). Amongst other reasons, YS could not accept NHO's demands regarding representativeness when putting forward a wage claim.

On Wednesday 17 December 1997, negotiations between the Confederation of Vocational Unions (YS) and the Confederation of Norwegian Business and Industry (NHO) regarding a new Basic Agreement broke down after only a few hours of negotiations. In Norway, Basic Agreements between the main social partner organisations lay down a set of principles and procedures which regulate their relationship.

YS cannot accept NHO's demand that, before an employee organisation can put forward a wage claim, certain conditions of representativeness must be met. This type of clause was included in the proposal for a new Basic Agreement which theNorwegian Confederation of Trade Unions (LO) and NHO agreed to on 10 November (NO9711134F). In firms with more than 25 employees, the organisation must organise at least 10% of the employees who are eligible for membership before it can demand a wage agreement. In those cases where the firm already has a wage agreement with another employee organisation, the threshold is raised to 30% of potential members. LO and NHO are committed to endeavouring to ensure that these clauses are also included in the other Basic Agreements to which they are party. There is reason to believe that YS in particular opposes this clause, since it will make it more difficult for its affiliates to establish new wage agreements in firms which already have a wage agreement. YS-affiliated unions have significantly fewer members than LO unions within the private sector, and therefore YS sees this demand as an attempt to weaken its position relative to that of the LO.

Negotiation breakdowns regarding revisions of the Basic Agreement are rare in Norway. The negotiating parties may not take industrial action in connection with renegotiating the Basic Agreement, and the parties will not be called in for mediation, as is customary if the parties cannot reach agreement over wage agreements. If the parties do not resume negotiations regarding a new Basic Agreement, this dispute between YS and NHO may re-emerge during the wage negotiations in spring 1998.