The wage negotiations between Fellesforbundet, Parat, and Norsk Industri have broken down. The parties will now go to mediation starting April 7, with a deadline at midnight April 11. The wage negotiations started on March 23, with an original deadline of March 26.
A key demand from Fellesforbundet is that all companies covered by the industrial agreement must advance sick pay, meaning they would pay sick pay upfront and later claim reimbursement from Nav. Norsk Industri rejects the demand for advancing sick pay, arguing it is the wrong time to shift responsibility for welfare schemes from Nav to companies. Currently, employers pay sick pay for the first 16 days, after which Nav takes over.
Many private companies already advance sick pay, but not all, while all public sector employees have advance sick pay. If no agreement is reached by the deadline, 33,237 industrial workers organized in Fellesforbundet will be called out on strike. A first strike notice will only be sent after Easter.
This year's negotiation is a main settlement, meaning the entire tariff agreement is negotiated, not just wages. The outcome of these negotiations will largely determine wage growth for all Norwegian employees, in both public and private sectors. The negotiation follows the front-fag model, where competitive industry sets the framework for other settlements to ensure Norwegian wages do not become uncompetitive internationally.
An Ipsos survey commissioned by Fellesforbundet shows 79% of the population has an economic buffer of two weeks or more, while 12% cannot manage more than one week without pay. Among households with income under 800,000 kroner, 22% cannot manage more than one week without pay. The problem of lacking economic buffer is greatest among young people and in the hotel/restaurant and retail industries.
The survey highlights the vulnerability of certain groups to income disruptions, which Fellesforbundet cites as a reason for its sick pay demand. The mediation process will be critical in resolving these contentious issues before the strike deadline.