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The incomes policy

The incomes policy Finn Bergesen jr. Director General Total wage cost in Norway relative to trading partners (Trading partners =100) Source: TBU feb 2004/NHO High labour costs threaten our competitiveness in manufacturing industries Source: TBU, February of 2004

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The incomes policy

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  1. The incomes policy Finn Bergesen jr. Director General

  2. Total wage cost in Norway relative to trading partners (Trading partners =100) Source: TBU feb 2004/NHO

  3. High labour costs threaten our competitiveness in manufacturing industries Source: TBU, February of 2004

  4. Wages for the manufacturing industry,1998-2003

  5. The Incomes Policy Cooperation • Purpose - increase our competitiveness through a common political commitment • Cooperation between the Government and the employees and employers’ confederations • Both public and private sectors participate

  6. The content of the Incomes Policy in 2003 • Wage increase more in line with the European level • Wage increase within competitive industries should be guiding principle • Allocation focusing on well functioning labour market and equitable wage trends Result: A lower wage increase than the year before, a trend change.

  7. Main challenges in 2004 for the incomes policy and negotiations • A common understanding of the importance of a low wage increase to improve the competitiveness of our export companies • Hold back on the labour organisations demand for pension schemes in the wage negotiations

  8. Labour market challenges • High unemployment in Norway last year, but going down again in 2004 • Employment growth already strong • The aging of the population and the increased use of oil money will result in a shortage of labour in the future

  9. Trilateral Agreement on a More Inclusive Workplace

  10. Background • Efforts have to be made to change the development; • the high sickness leave (about 7-8 %) • the early retirement age (average 59 years) • the increase in the number of persons assigned to disablement pensions (increase 30 000/year, total >300 000 persons) • The gap between the work force available and the work force needed is increasing

  11. Demographic structure towards 2010

  12. The trilateral agreement • Signed Oct. 2001 by the Government and the social partners • The general objective: To create a more inclusive work-place with focus on ability, not disability • The specific objectives are • to reduce sickness absence by at least 20% within the end of 2005 • to secure employment for a greater number of employees with reduced functional capacity • to increase the average age of retirement from working life • The arena for the task will be the work place, the kingpins will be the employee and the employer

  13. What happens? • 620.000 (32%) workers work in IW-enterprises • The average retirement age has increased • The sickness absence in IW-enterprises is decreasing • The agreement was evaluated last year and will be carried forward

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