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Wage settlement

What does the wage settlement mean for you? Here you will find answers to the most common questions about how your salary is negotiated, and information about the negotiations in the state sector, Spekter, Virke, and NHO.

Local negotiations

In some wage settlements, some of the money is distributed at the local level.

Collective agreements

The wage settlement usually ends with a new version of the collective agreements. Read more about the collective agreements here.

What is a wage settlement?

A wage settlement is a negotiation between employers and employees (organized in trade unions) regarding how much wages should increase. Instead of each individual employee having to negotiate alone, this happens collectively, with the trade union (or the main confederation the union is part of, such as LO Stat) negotiating on their behalf. This ensures a fairer wage development for all members in a unit. Some settlements are large and involve hundreds of thousands of employees, while others are smaller, perhaps just for a small company.

The main purpose is to ensure that your wages keep pace with price inflation in society, so that you do not end up with less purchasing power. In addition, the settlements are used to negotiate important benefits such as:

  • Working hours and overtime pay
  • Pension rights
  • Vacation and days off

Main settlement and interim settlement

Most collective agreements last for two years. Therefore, the negotiations vary from year to year:

  • Main settlement (even-numbered years): Here, all content of the agreement is negotiated, including wages, working hours, pensions, and other rights.
  • Intermediate settlement (odd-numbered years): Here, usually only wages are negotiated.

Most collective agreements also have a provision for wage adjustment with the right to strike halfway through the period (i.e., during intermediate settlements).

Strike

The right to strike is the trade union movement's most important tool. Without the possibility of striking, trade unions would have no power behind the demands they make. The threat that work will be stopped if we do not succeed gives weight to negotiations with employers.

In Norway, wage settlements and the right to strike are regulated by the Labour Disputes Act and the Civil Service Disputes Act:

  • There is a duty of industrial peace as long as a collective agreement is in force (striking is not permitted)
  • The possibility to strike only arises when the collective agreement expires and the parties fail to reach an agreement on a new contract through negotiations or mediation.