Wage negotiations - background

15 November 2017 09:11

Wage negotiations - background

Do you want to understand the background for the wage negotiations at NHH better? This article might help you to see how it works.

Wage increases in state institutions in Norway have largely been negotiated centrally for the whole country, leaving a small amount for local, merit-based, wage rises.  In spring 2016, the state negotiations started shifting the responsibility for negotiating wage increases to the institutions themselves.

The institutions are in addition limited to the wage increase framework agreed for the whole country between employers and unions in the parts of the economy exposed to foreign competition.

These nation-wide negotiations establish ‘tariff agreements’ which run for two years, so that the next negotiating period will be for 2018-20.

Negotiations in 2017

This year, negotiations have been limited to rounding off the changes which began in 2016. Up to 2016, there was one joint tariff agreement between the state as employer and all the unions, but during the 2016-18 agreement period, there have been two agreements: one of which wages remain pegged to a table of thresholds (‘lønnstrinn’), and in the other, wages are expressed only in NOK (there are minor additional differences).

This year, the amounts available in the wage increase framework were very limited, and it proved impossible to make local adjustments to the table thresholds. This led to a mixture of fixed and percentage increases. It is the intention of NHH and the unions to return to merit based wage increases from 2018, taking into account the need to compensate for inflation which up to 2016 was secured in the central, country-wide negotiations.

Prior to 2016

Prior to 2016, most annual wage increases were achieved by adjusting the table of thresholds, and local merit based additions also followed this pattern. 

Local wage negotiations - results (Paraplyen, November 2017)

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