Employers' and unions' views on expected change of government

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As a result of the September 1997 parliamentary elections, it is highly likely that Norway's present Labour Government will be replaced by a coalition government from the centre when Parliament reassembles in October. The major labour market parties emphasise that a new government must ensure low inflation when carrying out their political programme. The LO trade union confederation also warns the new administration against changing welfare arrangements, such as the present sick pay scheme.

The parliamentary elections, which were held on 15 September 1997, will most likely result in a change of government, with a new coalition replacing the present Labour Party government in October. The coalition partners are to be the Christian Democratic Party (Kristelig Folkeparti), Centre Party (Senterpartiet) and Liberal Party (Venstre), and the new Prime Minister will be Kjell Magne Bondevik from the Christian Democratic Party. The new minority Government will have 42 out of 165 seats in Parliament, and is therefore dependent on support from other parties.

The president of the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO), Yngve Hågensen, has warned the new government against changing the principles of the so-called "solidarity alternative", which is a national strategy to reduce unemployment in Norway. Mr Hågensen reminded the forthcoming government that low inflation and low interest rates are important preconditions for tripartite cooperation. He also made it clear that LO places great emphasis on the continuation of certain welfare and labour market related schemes which several of the political parties in the new centre government would like to see changed. The sick pay scheme is the most central issue in this respect (quoted in Aftenposten on 19 September 1997).

Magne Sognvoll, the head of the Teachers' Union Norway (Lærerforbundet), one of the largest national unions within the Federation of Norwegian Professional Associations (Akademikernes Fellesorganisasjon, AF), stated that he hopes the change of government will mean looser ties between the government and LO. Sognvoll believes that LO's influence with the government has been too strong at the expense of other employee organisations, with the result that employee groups within the public sector with an academic background have been given a low priority in wage settlements (quoted in Aftensposten on 21 September 1997). However, there is no doubt that the non-LO affiliated employee organisations will also oppose changes in the sick pay scheme.

The Confederation of Norwegian Business and Industry (Næringslivets Hovedorganisasjon, NHO) emphasises that a new government must adopt a "responsible budget policy" and that the new Parliament must ensure that the policies will not entail a significant growth in public spending. NHO's president, Leif Frode Onarheim, refers to the fact that the business community prefers predictable and stable economic policies, and hence the new government must not create a situation of instability and insecurity within which the Norwegian economy must operate.