The average growth in pay of top managers in the private sector was 2.5%-4.75% higher than the increase experienced by the average wage earner in 1997, according to new figures published by the Technical Calculating Committee on Income Settlement (Det tekniske beregningsutvalget for inntektsoppgjørene, TBU). When compared to the 1996 period, during which the average growth of managers salaries was 1%-3% higher than the average worker, the 1997 period witnessed a much higher wage increase among top managers relative to average wage earners. From 1995 to 1996, management salaries in private stock companies grew by 5.7%-7.5%, while from 1996 to 1997 they increased by 6.7%-8.9%. The figures also show that in the period from 1990 to 1997 the annual wage growth of top managers was between 3.9% and 4.9%, while for the average wage earner the figure was 3.7%.
In 1998, top managers in the private sector are for the first time included in the figures on pay increases published by Norway's Technical Calculating Committee on Income Settlement. In 1997, the average wage growth of top managers in the private sector was between 2.5% and 4.75% higher than the increase experienced by the average wage earner.
The average growth in pay of top managers in the private sector was 2.5%-4.75% higher than the increase experienced by the average wage earner in 1997, according to new figures published by the Technical Calculating Committee on Income Settlement (Det tekniske beregningsutvalget for inntektsoppgjørene, TBU). When compared to the 1996 period, during which the average growth of managers salaries was 1%-3% higher than the average worker, the 1997 period witnessed a much higher wage increase among top managers relative to average wage earners. From 1995 to 1996, management salaries in private stock companies grew by 5.7%-7.5%, while from 1996 to 1997 they increased by 6.7%-8.9%. The figures also show that in the period from 1990 to 1997 the annual wage growth of top managers was between 3.9% and 4.9%, while for the average wage earner the figure was 3.7%.
This is the first time that top managers in the private sector have been included in TBU report, and it follows an initiative by the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) (NO9709121F). LO has pledged to combat disproportionate growth in management salaries vis-à-vis ordinary workers, because it is seen as a threat to the policy of pay moderation pursued by the social partners in the last decade. The wage agreement reached during the 1997 negotiations between LO and the Confederation of Norwegian Business and Industry (Næringslivets Hovedorganisasjon, NHO) stated that the 1997 settlements, covering mainly blue-collar workers, should have a normative effect on all groups including senior white-collar workers and management groups (NO9704108F).
Management salaries have never before been so widely deliberated, and the TBU report is based on several sources. In addition to the ordinary wage figures based on information from firms affiliated to NHO and figures from Statistics Norway, the supplement to the report also include new figures from the the Lønns- og Trekkopppgaveregisterproduced by the Directorate of Taxes (Skattedirektoratet).
The TBU comprises representatives from LO, NHO, the Norwegian Farmers' Association (Norges Bondelag), Statistics Norway, the Ministry of Finance and the Ministry of Labour and Administration. Its annual reports which are presented prior to pay settlements are an important basis for the negotiations, and the estimates for the past year's growth in pay is normally accepted by the labour market parties.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), TBU figures show increase in management salaries, article.
