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WORKING IN NORWAY

EXPLAINED: What is a Norwegian collective bargaining agreement? 

Workers in Norway will undoubtedly have heard about collective bargaining agreements, especially if they are unionised. But what is meant by the term, and how do they work? 

Pictured is the bridge which connects barcode with Grønland in Oslo.
This is what foreign workers in Norway need to know about trade unions in Norway. Pictured is a bridge that leads to the barcode district of Oslo. Photo by Gunnar Ridderström on Unsplash

A good work-life balance, high wages, and generous vacation time are some of the many benefits that lure foreign workers to Norway. 

However, a lot of these rights aren’t protected by Norwegian laws. Instead, worker’s regulations are a mixture of agreements between the country’s trade unions and employers, and government legislature. 

Working life in the country can best be summarised as a system of tripartite cooperation where employers, employee organisations and the government work together on matters regarding employment in the country. This is also referred to as the ‘Norwegian Model’.

“Norway is a pretty unionised country, and the regulations surrounding working life in Norway are mainly based on a mixture of laws and collective agreements,” Jan Olav Andersen, union leader for the Electricity and IT Association (ELogIT Forbundet), explained to The Local.

READ MORE: What foreign residents in Norway should know about workers’ unions

To decide on the rules and regulations that will govern working life, trade unions negotiate with employers’ organisations every couple of years to develop collective bargaining agreements which determine everything from wages to parental leave. In Norwegian, these are called tariffavtale.

Collective bargaining agreements are negotiated throughout the spring, and negotiations for some of the most prominent sectors will regularly make the domestic headlines. Before the negotiations, unions will typically announce what they expect from the talks. . 

The agreement itself is a contract which regulates employment conditions, for example, stipulating that all employees with a particular job title must receive a salary within a specific pay band, as well as holiday allowance, overtime pay, working hours, and other benefits.

The breakdown of these negotiations leads to strikes and lock outs. Industrial action is a legal part of the Norwegian working model, provided they are announced and not unsanctioned. 

As a result of the strength of the collective bargaining agreements, more than two million people are part of unions. However, some unions have much higher membership rates than others. For example, the service industry has a much lower union membership than the municipal sector, which is heavily unionised. 

Workers in unions do not need to negotiate over salaries, and if a worker is in a union, their contract will be regulated by a collective bargaining agreement. Unions cover both the public and private sectors in Norway. 

“We negotiate collectively at both a national and a company level. If you are not a member of a union, then you will have to act on your own, as we used to say, ‘alone we beg, together we negotiate’,” Andersen said.  

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WORKING IN NORWAY

Why overqualified foreigners in Norway struggle to find work

Norway is one of the worst countries in Europe when it comes to overqualified foreign labour being stuck in jobs that don’t make the best use of their skills, a new analysis has found. 

Why overqualified foreigners in Norway struggle to find work

Norway is one of many European countries struggling with “brain waste”, which is where immigrants struggle to find suitable full-time work or are overqualified for their roles due to their education not being recognised. 

The findings are part of an investigation by Lighthouse Reports, the Financial Times, El País and Unbias The News that found that most European countries fail to provide good job opportunities to educated foreigners – potentially at the cost of their labour forces and economies. 

“While the results differ slightly between labour market outcomes, a consistent pattern emerges: immigrants lag behind natives everywhere, but brain waste is worst in Southern Europe, Norway, and Sweden,” the report read

Some of the metrics used to measure brain waste were the proportion of foreign residents who were overqualified for their role, underemployed (meaning they weren’t working as much as they could), or unemployed. 

In Norway, 27.6 percent of university-educated Norwegians were overqualified for their roles, according to the report. Meanwhile, just over half of the university-educated immigrant population were overqualified for their job. 

This figure made Norway one of the countries with the largest raw difference in the percentage of the native population being overqualified compared to the immigrant population. 

Furthermore, the number of immigrants who were underemployed, 3.9 percent, was more than double the rate of Norwegians in the same position. 

The investigation used figures from Eurostat between 2017 and 2022. 

Norway’s Directorate of Integration and Diversity has recently investigated the obstacles facing the country’s foreign population in the workplace. 

Its report found that immigrants faced barriers both when trying to progress their careers or simply trying to get their foot in the door. 

Immigrants working in Norway were also more likely to leave working life earlier or lose their jobs. 

READ ALSO: The biggest barriers foreigners in Norway face at work

Factors such as working in temp positions, physically taxing occupations, and industries exposed to economic turbulence contributed to this. 

However, a lack of Norwegian proficiency, a lack of relevant skills and poor health also played a part. 

Discrimination prevented immigrants from entering the workplace and affected those who were employed

“More and more people in the population have contact with immigrants in working life, and most experience that contact as mainly positive. At the same time, one in four immigrants has experienced discrimination in the workplace, and this discrimination can occur in different forms and in different working situations,” the report read.

The directorate also said that most companies didn’t have concrete measures to try and promote diversity.

One factor holding back immigrants in Norway was their Norwegian language skills, the report said. 

While Norwegian skills were moving in the right direction, less than half of foreigners in the country had advanced Norwegian language skills (level B2 according to the European framework) after completing language training.

Meanwhile, Lighthouse Reports’ investigation found that brain waste in Norway varied from profession to profession. For example, Norway was one of a number of countries where college-educated immigrants were more likely to be doctors. 

Immigrants with a university education in IT-related subjects were also far less likely to be overqualified. There, the difference between migrants being overqualified compared to natives was just 2 percent. 

However, physical and engineering science technicians, engineering professionals (excluding electrotechnology), and those who have studied education at a university level were the immigrant groups in Norway most likely to be overqualified. 

One thing to note is that immigrants who obtained their qualifications in Norway were far less likely to be overqualified than those who got their degrees outside of Norway, even if they still fared worse than natives overall. 

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