Labor and LO demand the prohibition of dismissal of companies that receive assistance in crisis – E24

“We are concerned about having generous plans to save jobs in times of crisis, but there is no reason to be naive,” Hadia Tajik, Labor Party deputy leader and fiscal policy spokesperson, tells NTB.

Tajik notes that a lesson from previous economic crises, such as the financial crisis, was that some of the players rescued by the state ended up spending the money on big bonuses, increased executive salaries, and big dividends.

– We just can’t risk it again, she says.

On Tuesday, the government presented a new crisis package of nearly NOK 18 billion. The Labor Party and the Confederation of Trade Unions want the following requirements to be established for companies that will receive support from the new compensation scheme:

• No layoffs while receiving crisis support.
• No dividends, share buybacks, or bonus payments to executives.
• Large companies must enter into agreements with shop stewards to preserve jobs during the pandemic.

“These demands are that community funds should be used for what the community cares about, that is, saving businesses and jobs,” says Tajik.

– A hand should feel damp

Jørn Eggum, leader of Fellesforbundet, LO’s largest union in the private sector, unconditionally supports the measures. He says that it is especially the ban on layoffs that is important for the workers’ organization.

– When companies receive this money, employees must be fired and not fired, says Eggum.

– We cannot accept that they lay off their employees at the same time that they have promoted generous plans related to the dismissal, he says.

Eggum believes that it is not problematic to make these demands on the business community and notes that the parliamentary majority did the same when the oil package was adopted before the summer.

– Then both the environmental requirements and the requirements were set for it to be built in Norway, and for us to follow closely. You have to do the same with the hotel, gastronomic and tourism industry now. They should feel a wet hand that makes sure they don’t do what they’re used to doing, says Eggum.

Pressed into position

Hadia Tajik says that the lawsuits are established as preventive measures, not because today it is seen that many companies have gone to layoffs or have given large dividends at the same time that they have received crisis state aid.

– At the same time, I have received worrying comments from shop stewards, who say that there are some very cynical actors who use the crown crisis to reduce the employment rate of workers, says Tajik.

– These give verbal guarantees that employees will one day get the same percentage of work again, but they refuse to write the same promises, so we just can’t have it, he says.

Diferent models

– How long do you think the ban on layoffs, bonuses and dividends will last for companies?

– The workforce is flexible here, there may be different models, the most important thing is to achieve the goal that is to assure employees, says Tajik.

She says a possible model is for the ban to apply while receiving the support and a period after, for example, the entire year that you received the support.

– Or you can pay yourself again. If the company first receives support and then turns the wheels again, then it can choose to return the support and then be released from the obligations it has signed, says Tajik.

The demands are part of the Labor Party’s alternative state budget, which was unveiled on Thursday, and will be tabled as an alleged verbal proposal at the Storting when the financial recommendation is considered later this fall.