New collective agreements signed in public sector

May 1999 saw the collective agreements in Norway's public sector renegotiated without any recourse to industrial action. In general, the agreements seem to be within the agreed framework of around 4.5% growth in pay, even though the settlement in the municipal sector is estimated to lead to growth of 4.88%.

During May 1999 all the new collective agreements in the Norwegian public sector - which were intermediate settlements adjusting the pay terms of the two-year agreements signed in 1998 (NO9806170F) - were concluded without any recourse to industrial action. In the state sector, the trade unions concluded an agreement with the employers on 1 May, while in the municipal sector negotiations the parties managed to reach an agreement only with the help of the State Mediator. Pay rates in the public sector pay scale, which is common to both the municipal and state sectors, were not increased. The implication is that all pay increases in 1999 were allocated by adjustments to the rules on service-related payments or by altering the placement of positions within existing pay scales.

State sector

In the central state sector negotiations, priority was given to increasing pay for those employees with low levels of seniority, which basically means increasing the starting rates for newly recruited personnel. In addition, funds have been aside for central "adjustment" negotiations, which will be conducted under an obligation to refrain from industrial action. The parties agreed that women should receive a larger proportion of these funds than the pro rata distribution would allow for. Special attention will also be given to organisations' particular circumstances of recruitment and competition, as well as to groups with poor pay development. Funds are also set aside for local negotiations. The settlement in the state sector is estimated to generate an average growth in pay of 4.5%.

As in other bargaining areas, the proposed reform of skills and training ("competence") was an issue during the negotiations in the state sector. By and large, the parties followed the agreement on this issue reached in the April 1999 private sector between the Norwegian Confederation of Trade Unions (Landsorganisasjonen i Norge, LO) and the Confederation of Norwegian Business and Industry (Næringslivets Hovedorganisasjon, NHO) (NO9904126F). The joint committee which was deliberating over the basis for competence reform in the state sector prior to the 1999 wage settlement is to continue its work.

Municipal sector

The pay settlement in the municipal sector was marked by a relatively large wage "carry-over" from 1998, and the 4.5% limit for average pay growth agreed to prior to the 1999 settlements (NO9903120F) thus meant that there was little room for pay increases. The Norwegian Association of Local Authorities (Kommunenes Sentralforbund, KS), which negotiates on behalf of most municipalities and counties, concluded an agreement with Akademikerne (the recently-formed union confederation for employees with a longer university education - NO9807174F), according to which the whole general increase in pay is to be awarded as local increases by the 1 December 1999. This was not acceptable to the other three trade union confederations. Following mediation, an agreement was reached with the other confederations which produced a slightly larger growth in pay than provided for by the Akademikerne-KS agreement. Among other matters, adjustments were made with regard to the starting salaries of groups with low or medium pay levels. Taken as a whole, the negotiations are estimated to generate an average growth in pay for 1999 of approximately 4.88%. The main principles of the competence reform agreed to by LO and NHO were also accepted in the municipal sector. The parties agreed to continue the work done on developing competence reform appropriate to the municipal sector.

Other bargaining areas

Agreements were also reached in the Municipality of Oslo, and in the so-called "NAVO area", which consists of semi-autonomous public enterprises, and the parties believe these settlements to be within the 4.5% framework.

Commentary

The 1999 pay settlement in the public sector was marked by the parties' prior agreement to keep the settlement within the framework of an approximate growth in pay of 4.5%, which included the wage "carry-over" from 1998 (ie the delayed effects of provisions agreed in 1998). The implication was that the state sector settlement had to be carried out within a framework of approximately 1.25%. In the municipal sector, the wage carry-over from 1998 was 4.5% even before the negotiations commenced, which meant even fewer funds available in the 1999 settlement. All the union confederations had participated in the committee deliberating over the 1999 settlement, and accepted that there was no room for great changes to the present pay structure. In most bargaining areas, the parties managed to reach agreements without the help of the State Mediator. The municipal sector was the exception, and there was a real danger of industrial conflict. The agreement between Akademikerne and KS allowing for wage increases only at local level was criticised by the other three union confederations. KS was also criticised by the union confederations for allegedly failing to show a willingness to engage in real negotiations. The parties reached an agreement 14 hours after the fixed deadline for mediation had passed, and after the parties had been summoned by the Minister of Local Government and Regional Development, who warned them against resorting to industrial conflict over such minor sums of money. (Kristine Nergaard, Fafo Institute for Applied Social Sciences)