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Norwegian National Pact Reached 50 Minutes Before Strike

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4 August, 2005ICEM News release No. 27/2000

Norwegian unions and employers reached a mediated draft agreement for the country's private sector at 5.10 this morning - just fifty minutes before the start of a nationwide strike.

Despite the late hour - and the date - the proposal is a wholly serious settlement which meets all the unions' main demands. The strike would initially have brought out some 21,500 workers right across Norway from 6.00 am today. It had been called after this year's bargaining round collapsed due to employer intransigence and a series of mediation attempts failed for the same reason.

Private sector unions have coordinated their bargaining this year, and the main negotiations have been conducted between the national labour federation LO and the employers' federation NHO.

Those due to strike as part of the selective action included Norway's cement and explosives workers and catering staff in the oil industry. The biggest contingent of strikers would have been construction workers organised in the general union Fellesforbundet.

Under this morning's proposed settlement, the union demand for five weeks' annual leave throughout private industry would be met in full by 2002. Leave entitlements would rise by one day in 2001. For workers aged over 60, annual leave would be six weeks.

The pay proposals in the package satisfy the unions' demands both for a significant across-the-board increase and for greater pay equality. All workers covered by the three-year agreement would receive an extra NKR0.75 per hour from today (about 9 US cents or Eurocents). Those currently earning less than 87.1 percent of the average industrial wage (which was NKR210,841 in 1999 - roughly US$ 25,000 or 26,000 Euro) would get an additional increase of NKR1.25 from today, and a further NKR1.25 raise from 1 April 2001. Those earning between 87.1 and 92 percent of the average wage would get an extra NKR1.00 per hour from today, and again next year. Overall, the deal would give Norwegian private sector workers a real purchasing power increase of about 1 percent.

The employers are still refusing to make their proper contribution to financing workers' further training and continuing education. This was another major sticking point in the negotiations. Under today's proposal, a joint working group would be set up to look into this question.

The proposed settlement also includes further measures to promote equality in the workplace.

The majority of the union negotiators voted to accept the deal, which preserves scope for sectoral and local bargaining. It now goes to the membership for decision.