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By Aslak Bodahl / FriFagbevegelse
This year’s pay settlement is in full swing after the crown broke, and the results of negotiations between the union movement and employers’ organizations are coming in. This applies not only to salaries and salary supplements, but also to important issues such as working hours and welfare leave. That is why it is called the main settlement.
Summary: here are the results of the salary settlement so far
More or less similar salary development
But how was last year? What was the result then? And the settlements of 2018, 2017, 2016 and 2015? We did a deep analysis and now we can present an overview of the evolution of salaries in the main areas of negotiation. The starting point is the annual reports of the Technical Calculation Committee (TBU), writes FriFagbevegelse.
The case continues below the image.
NHO Director Ole Erik Almlid (left), Ombudsman Mats Wilhelm Ruland and LO Leader Hans-Christian Gabrielsen following the 2019 interim agreement. Photo: Håkon Mosvold Larsen / NTB
The public committee, which is represented by the main economic experts of the working life parties, presents figures and analysis each year as the basis for the salary settlement.
– The rate areas have essentially the same salary development over time, but teachers in the school system are among those who are left behind. They have had lower wage growth than other city employees, but the parties disagree a bit on how the figures should be interpreted, Kristine Nergaard, a Fafo researcher, an expert on wage settlement and working life, tells FriFagbevegelse.
In the overall growth from 2015 to 2019, it is not surprising that the financial industry (banking and insurance and other financial services) performed better. Salary growth for the other bargaining areas, on the other hand, is more or less the same, according to Nergaard.
– The frontal thematic framework has provided solid guidelines for the other settlements. That is, there have not been many below or above. At the same time, there will be differences within a collective bargaining area, but now we see that salaried employees in the industry receive roughly the same salary growth as workers in the industry. Before, they used to end, he says.
– It is also important to remember that the same percentage growth gives more money to those with high wages than to those with low wages, emphasizes the Fafo researcher.
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The strike in 2014
That municipal employees have come out of the settlements well in the last five years compared to the frontal subject, Nergaard explains as follows:
– It may be due to two factors. One is that the financial framework has been given to the public sector, while the front-line issue has underperformed due to the worst conditions in the industry. The second is special circumstances such as the teacher strike in 2014. The repercussions mean that the salary supplements are spread over two years and affect the figures. That’s why we have to look at 2014 and 2015 together, he says.
At most, about 8,000 teachers were on strike in 22 municipalities and 18 county municipalities between June 10 and September 1, 2014.
Nergaard recalls that it is the organized part of working life that is covered by TBU’s salary statistics. He reiterates that settlements over time essentially end immediately with the various occupational groups.
– Finance is a sector that is in decline and has often been over the limit, but it is also due to the payment of bonuses. Some professional finance groups have more payments of this type than others. If we only look at employees who are paid according to collective agreements within banking and insurance, salary growth will likely be closer to what other areas of collective bargaining have, he notes.
So it was in earlier settlements
Provisional agreement 2019: Government employees performed better in the evolution of wages. The 3.8 percent growth was higher than what the subject at the front indicated as a level.
Municipal employees and health and financial services trusts followed with a salary increase of 3.5 and 3.4 percent, respectively. As a result, the public sector became a salary winner, according to figures from TBU.
– If we dig into the numbers, then there are reasons why we end up there. The number 3.8 is not a fixed salary. 0.4 percentage points is an increase in fixed and variable supplements. This is partly due to exercise activity in the Armed Forces, Leader Egil André Aas at LO Stat told FriFagbevegelse.
In the municipalities, social workers, child welfare educators and social workers were among the wage earners. The large salary increase for college graduates was due in part to the guaranteed salary in 2018 being raised for various groups working in municipalities, including those with three and four years of college or university education.
The financial framework in the interim settlement in 2019 was 3.2 percent. The agreement between LO and NHO initially applied to 165,000 employees in the private sector, but the supplement formed a financial framework for almost all other employees in Norwegian working life.
The salaries of the selected groups in 2019 showed that industrial salaried employees were still at the top at NOK 784,600. This corresponded to a salary increase of 3.0 percent.
This was the salary in other groups:
• Financial services: 689,100 NOK (3.4%)
• Health trusts: NOK 615,300 (3.4 percent)
• Government employees: NOK 612,200 (3.8 percent)
• Municipal employees: 534,600 NOK (3.5 percent)
• Construction: 527,600 NOK (2.8%)
• Industrial workers: NOK 496,400 (3.1 percent)
The case continues below the image.
Kristine Nergaard is a researcher at the Fafo Research Foundation. Photo: Kai Hovden
The main settlement 2018: Municipal employees were among the salary winners in 2018, but almost all of it was eaten up by high inflation. On average, employee salaries in municipalities increased 2.9 percent, according to TBU figures. The increase was mainly applied to employees with central collective agreements.
Along with financial industry and health trust employees, who had a 3.3 percent pay increase, city employees were able to register for a top three position in 2018.
At the same time, there were small differences in the evolution of wages this year. The lowest number of employees corresponded to retail trade, with an increase of 2.7 percent. However, the growth didn’t give people much else to do. Higher inflation and more expensive electricity mainly consumed much of the wage growth. Inflation was 2.7 percent.
Provisional agreement 2017: In previous settlements, Finans have received more than others. It also happened in 2017. Then they were also announced as salary winners, according to figures from TBU.
In the NHO area as a whole, annual salary growth was estimated at 2.4 percent on the interim settlement, but salary growth for employees in financial services was 3.8 percent.
Trade in goods was the second best in wage development with growth of 3 percent, while the growth of industrial workers, industrial officials and municipal employees was 2.5 percent.
In the state, employees received a 2.3 percent pay increase. Ådne Cappelen, TBU leader, did not have a good explanation as to why the banking and financial industry withdrew from the other groups.
He explained the reason for wage growth in retail with “structural changes in the industry.” This means that the number of store employees had decreased and more employees of other types had been hired in online shopping.
The main settlement 2016: Annual wage growth in the main bargaining areas ranged from 2 to 2.5 percent. According to TBU leader Ådne Cappelen, this was the lowest growth since the war.
The annual salary calculated for all wage earners increased by an average of 1.7 percent, but inflation was 3.6 percent, and therefore more than twice the growth of wages.
Wage growth for industrial workers in NHO companies fell from 2.5% in 2015 to 2% in 2016. Salaried employees in industry experienced the same. From a salary increase from 2.5 to 2.25. For employees in retail, the state, municipalities, and the finance industry, wage growth was nearly identical.
Provisional agreement 2015: The average wage evolution this year was 2.8 percent, the second lowest wage growth since the war. This resulted in a modest real wage growth of 0.6 percent.
The winners of the salaries were the financial industry (banking and insurance) with an average growth of 4.2 percent. In large bargaining areas, annual wage growth ranged from 2.5 to 3.3 percent.
TBU has previously pointed to bonus payments as an explanation for why the financial industry has grown faster than others. But this year there were also other reasons for growth.
– When banks close branches, it is the lowest paid who lose their jobs, and then the average salary level will rise, said TBU leader Ådne Cappelen.
Municipal employees also received higher salary growth (3.25) than average. It is actually related to the teachers ‘strike in 2014. Due to the teachers’ strike, the salary supplements were given at the end of the year. Then there was a big overhang until 2015, which resulted in higher salary growth.
After the 2015 deal, NHO calculated the mark to be 2.7 percent, but industrial workers on the front line were below. Both industrial workers and industrial officials had an annual wage increase of 2.5 percent.
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