Working in Norway: Minimum wages, generalisation of collective agreements, wages, trade unions
Norway does not have a common minimum wage for all workers. Here we explain why
The collective agreements regulate the minimum wages in Norway. And the law ensures minimum wages within nine industries. This is especially important for foreign workers.
JOBB
Most of the EU's member states have introduced a statutory minimum wage for all workers. It sets a legal limit for the minimum salary an employer can pay.
However, 6 out of 27 EU countries have arrangements where the minimum wage is found instead in collective agreements.
That is also the arrangement in the European Economic Area (EEA)* country Norway. In practice, we also have statutory minimum wages within nine industries. It is called the generalisation of collective agreements and is authorised in the Generalisation Act.
These industries are:
• Construction
• The maritime construction industry
• Agriculture and horticulture
• Cleaning
• The fish processing industry
• Electricians (except offshore)
• Freight transport by road
• Passenger transport by tour bus
• Hotel, restaurant, and catering
Related article: These are the current minimum wages within nine industries in Norway
In Norway, generalisation is applied only in industries where there is documentation that foreign workers may receive poorer pay and working conditions than is the norm in the industry.
The minimum wage is not the same within all nine industries. What the minimum wage amounts to is regulated through collective bargaining in each of these nine industries.
Both among migrant workers and Norwegian-born workers, fewer are low-paid after generalisation of collective agreements was introduced, according to a recent evaluation conducted by the research foundation Fafo.
In Norway, there is a broad agreement that this system should maintain.
Article in Polish: Norwegia nie ma jednej płacy minimalnej dla wszystkich pracowników. Tu to wyjaśniamy
Article in Lithuanian: Norvegijoje nėra vieningo minimalaus darbo užmokesčio visiems darbuotojams. Štai paaiškinimas
Why?
Over the past 15 years, an open labour and service market in the EU and EEC has led to the largest ever wave of immigration to Norway. This has also led to more work-related crime and social dumping.
According to Trude Tinnlund, secretary of the Norwegian Confederation of Trade Unions (LO), the largest organisation for employees in Norway, this is the most important threat against a decent working life and the Norwegian welfare state.
– One of the most important measures against this has been the generalisation of collective agreements. This means the parties have agreed on a statutory minimum wage within the most problematic industries, says Tinnlund to FriFagbevegelse.
The generalisation of collective agreements came as a response to the increasing and gross exploitation of mainly foreign workers.
– Because wages were reduced for everyone in these industries, it also affected Norwegian workers. Not least those who had jobs with lower education requirements. In addition, the competition for the jobs toughened, the LO secretary explains.
Work-related crime: These methods are used by rogue employers in Norway to exploit foreign workers
A common statutory minimum wage is only necessary when the trade union movement is weak and can no longer secure decent working conditions. This is evident in countries in the south and east of Europe, says Trude Tinnlund.
In Norway, about 70 per cent of workers are covered by a collective agreement.
– A statutory minimum wage would not only mean lower wages for many workers, but it would also undermine the organised working life, says the LO secretary.
*In a previous version of this article, Norway was referred to as an EEC country. This has been corrected to EEA.
Foreign workers are more prone to workplace injuries: Here's what you need to remember if you are in a work accident
