Norwegian employers and industry unions prevented a strike as they reached a pay deal with the help of the state ombudsman, according to Bloomberg.
The Federation of Norwegian Industries has reached an agreement with the unions Fellesforbundet and Parat, the federation said in a statement. The parties agreed to increase salaries by 3.7%. This is in line with the central bank’s latest forecast for March 24.
Wage pressures in the richest Nordic country on a per capita basis have increased, as its economy has returned to pre-pandemic levels, ahead of most developed countries. Labor shortages are rising and inflation has accelerated more than expected, driven by sanctions against Russia for its invasion of Ukraine. The Norwegian Ministry of Finance has urged spending restraint to avoid overheating.
More than 28,000 members and others from the two unions, representing parts of the manufacturing industry exposed to international competition, were ready to strike if no agreement was reached. In Norway, the outcome of these talks sets the starting point for the rest of the wage negotiations in other areas.
Norway had the highest hourly labor costs in the Nordic region last year, at 51.1 euros, compared to the European Union average of 29.1 euros, according to Eurostat.
The central bank last week raised its forecast for annual wage growth this year to 3.7% from its December estimate of 3.2%, after last year’s wage increase of 3.5% exceeded its previous forecast. . He sees next year’s increase to 4%.
Source: Capital
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