Labour Relations
Foto: Scanpix.
Foreign companies operating in Norway, may find themselves faced with a system of labour relations, collective bargaining and employee involvement that is unfamiliar to them.
Foto: Scanpix.
Foreign companies operating in Norway, may find themselves faced with a system of labour relations, collective bargaining and employee involvement that is unfamiliar to them.
This may be particularly true for companies based in the UK or the US. Being aware of the principles for labour relations in Norway is crucial in order to avoid undesirable situations in your company.
Trade unions and employers organisations have existed - and cooperated - in Norway for more than a hundred years. There is a deeply rooted tradition for employee involvement and the information/consultation of workers.
Over the years, legislation, collective agreements and company-based practices have developed, forming a system of comprehensive workers’ rights and privileges. There is now general consensus among employers on the usefulness of the system.
It should be noted that even though Norway is not an EU member, we belong to the EEA (European Economic Area). This means that all relevant EU directives are implemented here, including, for instance, the EWC directive and that on information/consultation.
Codetermination: Board representation according to the Limited Liability Companies Act.
Since 1972, employees in Norwegian limited companies have been entitled to board representation and to be represented in the corporate assembly. The employee representatives are elected by and from among the workforce. They enjoy the same rights and obligations as shareholders’ representatives.
Norwegian employees enjoy extensive information and consultation rights, most of which are to be found in the Basic Agreements concluded between employer and employee organisations. The provisions are binding on the parties to the agreements and alleged violations may be brought before the Labour Court. The Basic Agreement between the Confederation of Norwegian Enterprise (NHO) and the Norwegian Confederation of Trade Unions (LO), entered into for the first time in 1935, is the model for similar agreements with other workers’ organisations. The Basic Agreement can be found here.