Collective bargaining system in Norway
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1 Collective bargaining system in Norway Deputy Director General Eli Mette Jarbo London 12 September 2015
2 The model of labour relations General characteristics: Universal welfare and a large public sector High employment (both men and women) Small wage differences Strong collective actors Centrally coordinated wage formation and local bargaining at enterprise level
3 The collective actors Employee s side: About 90 national trade unions, mostly affiliated to one of four large confederations Largest is The Norwegian Confederation of Trade Unions (LO) Employer s side: About 50 large and small associations Largest is the confederation of Norwegian Enterprise (NHO)
4 Collective bargaining an essential part of the model Collective bargaining - long traditions in Norway The greater part of Norwegian workforce gets wages settled through collective agreements About 55 % of the workers are members of a trade union - most workers wages follows the pay scales of collective agreements
5 Wage formation an important area left to the social partners No minimum wages regulated by law An area left to the employees and employers organisations to regulate by collective agreements or the employee and the employer by individual employment contracts Act relating to general application of wage agreements The Tariff Board authorized to impose extension of collective agreements
6 Labour Disputes Legislation The Labour Disputes Act (2012) contains procedural provisions concerning the implementation of collective bargaining and the settlement of collective disputes in private and municipal sectors The Public service Disputes Act (1958) lays down corresponding rules for the central government sector
7 Labour Disputes Act 1 Definitions The following definitions apply for this Act: a) b) e) Collective agreement: an agreement between a trade union and an employer or employers' association regarding employment and wage terms or other working conditions.
8 Collective bargaining capacity who is entitled to conclude CB agreements The Labour Disputes Act Trade unions and employers organisations or employers can conclude CB agreements The Public Service Disputes Act the right to conclude CB agreements is reserved for certain unions representing civil servants, and the State a duty on the parties to negotiate
9 On which level are CB agreements concluded National level Industrial level Enterprise level
10 Binding effect who is legally bound by CB agreements The parties to the agreement are bound by the agreement Members of trade unions or employers organisations are bound by the agreement An employer who is bound by an CB agreement is committed to equal treatment as regards wages and working conditions stemming from the agreement, between organised and unorganised workers
11 The role of the state The state has no role in concluding CB agreements Very few formal requirements Provides legislation and institutions to solve conflicts: The National Mediator The Labour Court Compulsory arbitration in case of conflicts threatening life and health The National Wages board
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