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Norway - Minimum Wages - 2009


LAST UPDATE

20 April 2009

SOURCES


Name of Act

Working Environment Act,
Act No. 62 of 2005), dated 17 June 2005, Norsk Lovtidend, Part I, 2005-07-08, Vol. 8, No. 62, pp. 1112-1143 and Norsk Lovtidend, Part I, 2005-08-05, Vol. 9, No. 609, p. 1371, as amended up to 9 January 2009 by Act 2009-01-09-3 [English version as amended up to 23 February 2007]

Name of Act

Labour Disputes Act No.1, dated 5 May 1927 as amended up to June 5th, 1981.

Name of Act

Engineering Industry Agreement 2008-2010,
Agreement between The Confederation of Norwegian Business and Industry (NHO and Norwegian Industry and The Norwegian Federation of Trade Unions (LO) and The United Federation of Trade Unions (the United Federation)

MINIMUM WAGE FIXING


Procedure


Procedure in general

There is no statutory minimum wage in Norway; minimum wage rates are established through sectoral collective agreements.

Minimum wage set through decentralized collective bargaining

There is no statutory minimum wage in Norway, although minimum wage rates are established through sectoral collective agreements. Collective agreements are bipartite, between the social partners. The minimum wage rates determined through collective agreements apply to all wage earners in the sector covered by a collective agreement, regardless of whether they are members of the trade unions that negotiated the agreement.

For the purpose of this database, in line with the purpose to provide data on the manufacturing industry if different minimum wage rates apply per sector, the Engineering Industry Agreement 2008-2010 (Agreement between The Confederation of Norwegian Business and Industry (NHO and Norwegian Industry and The Norwegian Federation of Trade Unions (LO) and The United Federation of Trade Unions (the United Federation) is used as an example. It covers the majority of metalworkers in Norway.

Criteria


Other provisions

Provisions that stipulate the criteria to be taken into account when setting minimum wages could not be identified.

Coverage


Scope

The minimum wage rates determined through collective agreements apply to all wage earners in the sector covered by a collective agreement, regardless of whether they are members of the trade unions that negotiated the agreement. Employment contracts providing employment conditions less advantageous than those set forth in the applicable collective agreement shall be void.

The Engineering Industry Agreement 2008-2010 applies to skilled, specialized and unskilled workers in technological trades.
Engineering Industry Agreement 2008-2010 §1.2

Coverage rate

There are no data available on the coverage rate of the Engineering Industry Agreement.
In general, in the private sector in Norway around 50 % of the workers are covered by a collective agreement.

Specific minimum wage rates


» Specific minimum wage by occupation

As determined by collective agreement.

» Specific minimum wage by sector

As determined through collective agreements.
The Engineering Industry Agreement 2008-2010 applies to workers in technological trades.
Engineering Industry Agreement 2008-2010 §1.2

» Specific minimum wage by region

As determined by collective agreement, however most sectoral agreements are nation-wide. In the Engineering Industry Agreement 2008-2010 the minimum wage rates do not vary by region.

» Minimum wage levels for specific categories of workers


» Trainees

As determined by collective agreement.

The collective agreement for the building industry sets minimum wage rates for apprentices as a percentage of the hourly rate for newly trained skilled workers in the enterprise, starting with 30 per cent in the first year in teh enterprise.
The applicable percentage will progressively vary taking into account the seniority in the entreprise.
Trainees are paid according to the scale for apprentices.
Engineering Industry Agreement 2008-2010 §3.3.1, 3.3.4

» Youth

As determined by collective agreement.

The Engineering Industry Agreement provides that pay for young employees (under 18 years of age) shall amount to a percentage of beginner pay, starting at 53 per cent (15 years of age) and rising up to 90 per cent (17,5 years of age).
Engineering Industry Agreement 2008-2010 §3.3.2

» Piece-rate workers

The Engineering Industry Agreement 2008-2010 provides that an enterprise where the pay system so necessitates, an hourly rate can be agreed upon for calculating piecwork pay.
Engineering Industry Agreement 2008-2010 §3.1.5

» Other categories

The Engineering Industry Agreement 2008-2010 provides different minimum wage rates for skilled, usnkilled and specialised workers.
Engineering Industry Agreement 2008-2010 §3.1

Level


Minimum wage level(s) in national currency

NOK 117,19 per hour (unskilled workers in technological trades)
Engineering Industry Agreement 2008-2010 §3.1.3

Last minimum wage update

1 April 2008
Engineering Industry Agreement 2008-2010 §3.1.6

Rate of payment


» Hourly

Yes
Engineering Industry Agreement 2008-2010 §3.1

Scheduled frequency of adjustment

The Engineering Industry Agreement 2008-2010 entered into force 1 April 2008 and shall remain in force until 31 March 2010 and thereafter for a further 1 year unless terminated by one of the parties.
Before the end of the first year of the Agreement, negotiations shall be opened concernign possible adjustments for the second year of application.
Engineering Industry Agreement 2008-2010 §9.1, 9.2

Enforcement mechanisms


Fines in national currency for non-respect of legislation

The Labour Court determines disputes relating to collective agreements that could not be solved via negotiations. Any party to a collective agreement, found guilty of breaching that agreement may be ordered to pay damages as determined by the Labour Court.
Labour Diisputes Act §4

Results generated on: 31st October 2014 at 01:12:32.
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