Hearing – General application of wage agreements – regulation draft

TARIFFNEMNDA
Kommunal- og regionaldepartementet
Postboks 8112 Dep
0032  OSLO
Tlf. 22 24 69 39

Addresses according to enclosed list


Date: 14. May 2004   
Hearing – General application of wage agreements – regulation draft

Pursuant to Norwegian Act 4. June 1993 No 58 relating to general application of wage agreements etc., the Tariff Board hereby presents a regulation draft on general application of wage agreements.

A demand for general application of three wage agreements has been put forward by the Norwegian Federation of Trade Unions (LO). The regulation draft is published on the Internet.

You may also receive a copy of the draft from the secretary of the Tariff Board. An English version will be available during next week.

The Tariff Board would appreciate your comments to the draft regulation either by e-mail or by regular mail within 14. June 2004. Further questions may be answered by the secretary.

Yours sincerely

Ellen Mo
Chair Person of the Board

Ms. Eli Mette Jarbo
Ministry of Local Government and Regional Development
P.O. BOX 8112 Dep
N-0032 OSLO
Norway


2 Draft regulation on general application of wage agreements – Case No 1/2003 of the Tariff Board


1. Introduction
The Norwegian Act 4. June 1993 No 58 relating to General Application of Wage Agreements etc. (the General Application Act) came into force at the same date as the EEA Agreement in 1994. The objective of the Act is according to § 1-1:

 “...to ensure foreign employees of terms of wages and employment equal to those of Norwegian employees, in order to prevent that employees perform work on terms which, based on a total assessment, are demonstrably inferior to the terms stipulated in existing nationwide collective agreements for the trade or industry in question or otherwise normal for the place or occupation concerned.”

According to the preparatory works of the Act the aim also is to prevent distortion of comptetion in disfavor of Norwegian enterprises and employees.
Claims for general application must refer to a nationwide collective agreement and must be put forward by a workers’ or an employers’ organisation party to the agreement, the workers’ organisation having at least 10 000 members and the employers’ organisation representing at least 100 employers employing at least 10 000 workers. According to § 3 para. 1 of the Act claims for general application of wage agreements may also be put forward by organisations of smaller size, but they can not require the Board to consider their demand on  its merits. If a regulation of general application is in the public interest, the Tariff Board may make such decisions on its own initiative.

In the preparatory works of the Act from 1993 it is laid down that it is consistent with the EEA Agreement to determine that Norwegian terms of wages and employment should apply to all persons performing work in Norway, provided that such regulations neither formally nor in reality are discriminatory. The General Application Act complies with this condition, as a decision by the Tariff Board will apply to all persons performing work within the scope of the decision, both Norwegian organised and non-organised workers and foreign workers. Later on the Directive 96/71 EC concerning the posting of workers in the framework of the provision of services has been adopted. The Directive shall contribute to the promotion of transnational provison of services, but it is, however, emphasized that this “requires a climate of fair competition and measures guaranteeing respect for the rights of workers”. The Directive is implemented into Norwegian law by Chapter XII of the Act 4. February 1977 No 4 relating to Worker Protection and Working Environment. The provisions concerning posted workers shall contribute to secure equal conditions for all employees, and consequently any national regulations on wages should be applied as well.

The parties to a collective agreement which is made general applicable has an extended right to launch a boycott in case a decision on such an extension of the agreement is not complied with by the enterprises. The employer or a person managing the enterprise on the employer’s behalf is liable to penalty by a fine in case he does not comply with a decision by the Tariff Board. Additionally employees affected or their unions may institute private prosecution. Finally, in connection with their deliberation on transitional provisions for individual migrant workers from the new EEA countries the Norwegian Parliament has requested the Government to put forward a bill which among other matters should give the Labour Inspection tasks in connection with the control of decisions on general application of collective agreements.

2. The claim for general application from the Norwegian Federation of Trade Unions (LO)
Case No 1/2003 of the Tariff Board is based on a claim from the Norwegian Federation of Trade Unions of 19. December 2003 and concerns general application of certain parts of three nationwide collective agreements:
• The Engineering Industry Agreement (VO), entered into by LO and the Norwegian United Federation of Trade Unions (FF) on the one side and the Confederation of Norwegian Business and Industry (NHO) and the Federation of Norwegian Manufacturing Industries (TBL) on the other side,
• the Construction Agreement (FOB) between LO and FF on the one side and NHO and the Federation of Norwegian Construction Industries (BNL) and the Federation of the Norwegian Technical Contractors (TELFO) on the other side, and
• the Electrical Installation Agreement (LOK) between LO and the Electricians & IT Workers Union (EL & IT) on the one side and NHO and TELFO on the other side.
The claim applies for seven geographically limited petroleum installations onshore in Norway:
• Melkøya (Snøhvit) in Hammerfest municipality, Finnmark 
• Tjeldbergodden in Aure municipality, Møre og Romsdal 
• Mongstad in Lindås municipality, Hordaland 
• Kollsnes in Øygarden municipality, Hordaland
• Kårstø in Tysvær municipallity, Rogaland
• Nyhamna (Ormen Lange) in Aukra municipality, Møre og Romsdal
• Sture in Øygarden municipality, Hordaland

LO has requested general application of the following provisions of the collective agreements:

1.
The following provisions of the Engineering Industry Agreement (VO) 2002 – 2004 between LO and FF on the one side and NHO and TBL on the other side are made generally applicable:
§ 1.1  Area of application
§ 1.2  Vocational groups
§ 2.1  Ordinary daytime working hours
§ 2.2  Shift work 
§ 2.5  Overtime work
§ 3.1  Minimum hourly rate
§ 3.2  General rules regarding minimum hourly rates
§ 4.1  Pay systems in general
§ 5.1  Remuneration for public holidays and 1. and 17. May
§ 5.2  Payment for work on major public holidays
§ 6.1  Overtime supplement
§ 6.2  Basis for calculating overtime
§ 6.3  Shift work supplements
§ 6.4  Extremely dirty work and working clothes
§ 7.1  Extent and basis for determining payment
§ 7.3  Job assignments where overnight absence from home is necessary (…)
Appendix 7 Holidays etc.


2.
The following provisions of the Construction Agreement (FOB) 2002 – 2004 between LO and FF on the one side and NHO and BNL and TELFO on the other side are made generally applicable:
§ 1-1   Scope
§ 2-2   Minimum hourly rates for skilled workers
§ 2-3   Minimum hourly rates for unskilled workers, roustabouts and specialized workers ??
§ 2-9   Calculation of overtime supplements
§ 2-10 Additional charge for dirty work 
§ 2-12 Working clothes
§ 2-13 Daily allowances
§ 6-1   Ordinary daytime working hours
§ 6-2   Overtime work
§ 6-3   Staggered hours
§ 6-4   Shift work
§ 7-1   Travelling costs and daily allowance where overnight absence from home is necessary
§ 7-2   Travelling costs and daily allowance where overnight absence from home is not necessary
§ 11-1   Lunch room, rest room and lodgings
Appendix 7   Holidays etc.
Appendix 9   Remuneration for public holidays and 1. and 17. May
Appendix 18 Lodgings, barracks, accomodation and staff room 
§ 7-1   item 1.0 should read as follows:
Board and lodging
Before sending a worker on an assignment the enterprise shall provide for one of the following board and lodging arrangements:
a) If the enterprise procures board and lodging, no payment is made, provided the lodging at least is a furnished room with bedclothing and access to a sink, shower and toilet.
b) When the worker provides for board and lodging himself, the remuneration is to be agreed on in advance. The remuneration shall not be lower than the actual costs.
c) Board and lodging is paid by the enterprise according to expense account.

3.
The following regulations of the Electrical Installation Agreement (LOK) 2002 – 2004 between LO and El & IT on the one side and NHO and BNL and TELFO on the other side are made generally applicable:
§ 1  Scope and duration
§ 3  Pay regulations
A. Fixed wages
B. Pay for unfilled time
C. Skilled worker supplements
D. Fixed wages in the individual enterprises
E. Gang foreman supplements
F. Engagement/travelling time regulations
G. Meal break included in working hours
§ 7  Ordinary daytime working hours
§ 8  Overtime and shift work
A. Overtime work
B. Overtime supplement
C. Meal break
D. Shift work
E. Shift systems
F. Transitional provision
§ 9  Work in Norway outside the enterprise
A. Definition
B. Preparations for travelling
C. Walking time on the plant
D. Travel to and from plant
E. Out of town supplement 
F. Board and lodging
G. Provisions for accomodation
H. Comments
I. Daily allowance rates
§ 10  Special working conditions
A. Dirty work
B. Work entailing special danger to life and health
§ 11  Holidays
§ 12  Remuneration for public holidays and 1. and 17. May
§ 14  Short welfare leave
§ 16  Addition to the agreement 
Appendix 7  Accomodation standards
Appendix 11  Holidays, flexibility

3. The Tariff Board
Pursuant to § 2 of the General Application Act of 4. june 1993 No 58 the Tariff Board is appointed by the King in Council for three years at a time. It consists of five members, i.e. one chair person and two other neutral members in addition to one member from LO and one from NHO. The Board was last appointed for the period 1. January 2003 – 31. January 2005, and has in the present case had the following composition:
– High Court Judge Ellen Mo (chair person)
– Chief judge Anne Austbø
– Cand.oecon Tore Lindholt
– LO Secretary Ellen Stensrud
– Deputy Managing Director of NHO Lars Chr. Berge

The secretariat of the Tariff Board lies within the Ministry of Local Government and Regional Development, and Senior Legal Adviser Eli Mette Jarbo has been the secretary of the Board, with assistance from Legal Adviser Bodil Stueflaten.

The Tariff Board is an independent administrative body, and its proceedings follow the provisions of the Public AdministrationAct, cf. § 6 of the General Application Act. A decision on extended applicability of a wage agreement is almost invariably a regulation pursuant to the Public Administration Act § 2-1d). The general provisions of the Act as well as its special provisions concerning regulations are applicable, see especially its Chapter VII. The obligation to clarify the case in § 37 of the Act implies that a hearing must be held prior to the adoption of a regulation. According to § 6 of the General Application Act a hearing of a draft regulation from the Tariff Board can take place in a public meeting, due to the need of a rapid treatment by the Board.

According to the preparatory works of the General Application Act the Tariff Board is only to make a decision to the extent necessary to fulfil the objective of the act. Neither the act nor the preparatory works gives any other instructions to the Board as to what aspects should be emphasized.

4. The documentation requirements
Pursuant to the General Application Act § 1-1 the Tariff Board can make a decision on the extension of a collective agreement if foreign workers perform work on terms which, based on a total assessment, are demonstrably inferior to the terms of Norwegian workers. According to the preparatory works of the Act the term “demonstrably” is not a required qualification, but rather a standard of proof in order to prevent unfounded cases. In the view of the Tariff Board this implies that it is a condition that it can be documented that foreign workers perform work in Norway on terms and conditions inferior to those of Norwegian workers. The documentation requirement is not further commented on in the preparatory works of the act, which, however, makes it clear that the Tariff Board can make a decision not only when it is documented that problems with payment on inferior terms and conditions have occurred, but also in cases when it is reason to believe that such problems are imminent. In such a case it will be sufficient to present a probability of such an outcome.

The objective clause was made during the parliamentary treatment of the bill, in order, among other things, to prevent decisions on general applicability of collective agreements from being used as a means to provide a general expansion of Norwegian collective agreements.

Accompanying the claim from the Norwegian Federation of Trade Unions were pay slips for workers in a German enterprise performing work at Mongstad in 2002 and 2003. According to these pay slips, which employee representatives at Mongstad received from one of the German workers, the worker, an electrician, had a wage per hour equivalent to NOK 64,38. Furthermore, the wage slips showed actual working hours far beyond lawful working hours, and that the overtime wage rate was below 40%, which is the lowest lawful overtime pay according to the Worker Protection and Working Environment Act. The documentation presented by LO also included statements from representatives of enterprises which either has got or has tried to get contracts for work on the plants in question. According to these statements Norwegian enterprises are in a difficult cempetitive situation due to the relatively large wage differences between Norway and many other countries. In this connection it is referred to the fact that at Kollsnes all contracts except one were given to foreign enterprises. In LOs opinion there is no reason to believe that the situation would differ at the other petroleum installations covered by the their claim, and the enlargement of the EEA area with 10 more countries will further increase the problems.
In this case it has proved to be difficult to procure documentation. The trade unions, LO in this case, do not have any general right to information on the wage terms apart from those of their own members. LO has also experienced that the enterprises are rather unwilling to co-operate, and that the employees do not want to come forth from fear of reprisals. According to the law the Tariff Board has a special right to demand information on wage terms and working conditions, and an omission of meeting such an order is punishable by a fine. From among others Statoil, Hydro, LO, NHO and the Central Office for Foreign Tax Affairs the Tariff Board has received information on several Norwegian and foreign enterprises with contracts on the petroleum installations in question. The Board has sent letters to about 200 of these enterprises and asked for information on what wage terms and working conditions they offer foreign workers in the enterprise. Many of the enterprises have replied in a satisfactory manner, but a large number of enterprises have either not answered at all or have given insufficient and poorly documented information.

In the evaluation of the Tariff Board on whether the documentation requirements are met the Board firstly has considered the documentation put forward by LO in their claim before the Board. Furthermore, the replies from the different enterprises to the communication from the Board have been appraised. The Board has not been able to reveal many cases where the wage terms differ strongly from normal Norwegian level of wages. There is, however, a large number of examples where e.g. overtime bonus either is not paid or the overtime bonus is too low, or that other supplements or compensations which Norwegian workers usually have, lack for foreign workers.

In the view of the Tariff Board one must also take into consideration the fact that quite many enterprises either have not answered at all or have given insufficient and undocumented information. It is the employer or the enterprise who has access to the requested documentation, and thus is the only party capable of procuring the information which is necessary in the Board’s treatment of a claim for extended application of a collective agreement. Pursuant to § 7 of the Act the employer or “any person managing the enterprise on behalf of the employer” is in duty bound to provide all information requested by the Tariff Board. Omission to comply with such an order is punishable, cf. § 8. All enterprises having failed to answer the request from the Board have received a reminder from the Board, stating that in case the enterprise did not provide the information requested the Board would have to base a decision on available information from other sources. In the Board’s opinion (the majority) the fact that the party capable of providing documentation neglects to do so, should have impact on the assessment of whether the standard of proof is met. Otherwise it would be too easy to evade the law by being passive towards approaches from the Board, which can hardly have been the intention of the legislator. The importance which should be attached to such lack of information must, however, be compared with other information presented to the Board.

The 7 petroleum installations covered by the claim from LO, differ from each others, in the sense that they are in very different stages as to development and operations. At e.g. Ormen Lange the development has only just started, and few if any contracts are assigned, while Tjeldbergodden and Sture are fully developed installations in ordinary operation. The Tariff Board has not finally concluded on whether a decision from the Board should include all installations, and awaits the comments from the hearing round. In this connection reference is made to the statement above that decisions on general application of wage agreements also can be made in cases when it is reason to believe that problems are imminent, which might be a relevant evaluation as to e.g. Ormen Lange. In the view of the Tariff Board inter alia circumstances at the other installations, any exposure of poor terms of wages and employment in corresponding enterprises and expected consequences of the EEA enlargement in general must constitute relevant elements when deciding whether it has been substantiated in a satisfactory manner that problems are imminent.

The experiences gained by the Tariff Board when working on the present case show that the usability of the General Application Act depends on how strictly the documentation requirements of the Act are to be interpreted. The Tariff Board has not finally concluded on this matter, but want to consider it more closely in the light of the information given in the hearing.

In any case one should bear in mind that it can hardly cause any problems if it turns out that foreign workers to a very little degree have poorer terms on wages and employment than Norwegian workers. The consequences will solely be that few if any enterprises will be affected by a decision by the Tariff Board. 

The member of the Tariff Board Lars Chr. Berge (NHO) is of the opinion that the documentation requirements of the act are not fulfilled in this case. According to the act relating to general application of wage agreements it must be more likely than not that foreign workers are or will be working within the scope of the relevant wage agreement and that these workers actually will get poorer terms on wages and employment  than what is laid down in the wage agreement. In the view of the member of NHO it furthermore is a requirement that one can demonstrate problems of some significance, or in other words that not any discrepancy between the terms on wages and employement of Norwegian and foreign workers can be the basis for a decision on general application of a wage agreement, and it is the total terms of working conditions which are decisive. The extent of the work on departing terms must also be emphasized, in the sense that it must be of relevance to look at both the number of workers actually performing work on the individual installation as well as the number of workers in proportion to the size of a project. The member Berge is of the opinion that the documentation available in this case does not fulfil these requirements.

5. Hearing
In the view of the Tariff Board it is not possible to get an overview of everyone who might be affected by a decision on general application in this case. To carry out a ordinary hearing by mail or at a meeting is thus not very practical. The Board has decided to write to all the enterprises previously contacted by the Board for information, the parties to the collective agreements in question, other industrial partners, some affected ministries and others for whom a regulation might be of interest, informing them that a draft regulation from the Tariff Board is available on internet.

The Tariff Board anticipates written comments on the draft regulation by 14 June 2004.
   
6. Draft decision of general application on wage agreements
6.1 The Tariff Board’s deliberations
Case No 1/2003 of the Tariff Board is the first case handled with authority in the General Application Act since the Act came into force in 1994. The Act itself has no provisions on how the Tariff Board shall administer it’s work, and the Board also has a relatively broad margin of appreciation as to the contents of a decision as well as to how to formulate it. As far as the Tariff Board has been able to examine, no other country has a system of general application of wage agreements similar to the Norwegian system. Hence, it has not been possible for the Board to make use of earlier experience neither from national nor international practice.

The regulation will primarily be applicable to foreign enterprises and Norwegian enterprises with little experience with collective agreements. Thus, an important consideration for the Tariff Board has been to formulate a regulation which on the one hand attends to the demands in LO’s claim for general application and on the other hand is fairly simple and easy to use. It would not have been possible to achieve this if the Board had chosen a model with a more direct use of the provisions in the relevant collective agreements. Based on corresponding considerations, the Tariff Board proposes that it’s decision of general application of the three relevant agreements included in the present case are gathered in the same regulation. Still, if the regulation is proved difficult to interpret, it is important to underline the necessity of also taking the original collective agreement provisions into consideration.

In the preparatory works of the Act it is stated in several connections that general applicability must not be used to a greater extent than what is necessary to fulfil the objectives of the Act. This aspect has been decisive to the Board when making a choice as to which provisions of the agreements should be made applicable, especially in relation to the terms of wages. The Tariff Board has also emphasised the Act’s two-sided objective: Both to ensure foreign employees terms of wages and employment equal to Norwegian employees and to prevent distortion of competition in disfavour of Norwegian employees and enterprises, cf. above under item 1. In the Tariff Board’s point of view, the consequence must be that to stipulate a minimum level for wages and other working conditions will not be sufficient, because such a solution will lead to distortion of competition effecting Norwegian enterprises. Due to the same reason it would be difficult to place decisive importance on differences in taxes and level of costs between employees from different countries when the Board decides the level of wages and other working conditions. It is important in this connection to bear in mind that the Board’s decision will also apply to Norwegian enterprises not bound already by the relevant collective agreements or other agreements with similar or better terms. If the wage level is set too low, the decision on general application, at least in the longer term, would contribute to force down the Norwegian wage level. On the other hand it is important to avoid a level leading to wage pressure. In order to balance these considerations, the Tariff Board proposes that the collective agreements clauses on minimum hourly pay must be the basic wage level for employees comprised by the regulation. In addition, the Board proposes that provisions in all the agreements on supplements for shift work are made generally applicable. VO and LOK include fixed rates which are meant to cover the inconvenience of necessary overnight absence of 20 % and 13.2 % respectively of hourly pay. These fixed rates are also proposed made generally applicable for employees comprised by these agreements. For employees comprised by the terms of wages in the regulation § 5, the supplement for such inconvenience is included in the hourly pay rate. Additionally, the Tariff Board proposes common provisions for all employees included in the regulation on working hours, supplements for overtime work, holiday and compensation for public holidays etc. Other common supplements plus compensation for travelling and board and lodging costs shall be agreed upon between the employee and the employer. The drafted regulation also requires accommodations of ordinary good standard.

6.2 Comments on the provisions
Chapt. I. Introductory provisions
To § 1 Geographical scope:
LOs claim applies for seven geographically limited petroleum installations onshore and the regulation comprises all seven installations. From the second paragraph follows that it is only work on the relevant installations which is included and not associated activity located outside the plants. The Tariff Board has not taken a definitive decision as to wheter the regulation should apply for all seven installations, cf. observations above under item 4. The scope provision may be altered, dependent on the Boards conclusion on this point.

To § 2 For whom the regulation applies:
The provision shall embrace all groups of employees and all kinds of activities falling within the scope of the three relevant collective agreements. Compared to the agreements, the Board has made substantial simplifications, with the aim to achieve reasonably practical rules. The collective agreements themselves should be consulted if there are difficulties in determining which agreement the individual employees fall under. In VO the relevant provisions are §§ 1.1 and 1.2 first paragraph. In FOB the relevant provisions are § 1-1 No 1 first paragraph and No 2 to 4. In LOK the relevant provision is § 1 first paragraph.
Skilled workers must have some kind of officially approved trade certificate. The important point is that skilled workers must be able to document their skills.
The regulation does not apply for apprentices and young workers under 18 years of age.

To § 3 The enterprise’s responsibility:
The provision clarifies that the responsibility for giving employees terms of wages and employment according to this regulation, rests with the individual enterprise. (The provision makes no changes in any agreements on this subject between for instance the main contractor and subcontractors on the installations.)

Chap. II. Terms of wages and employment
The provisions in §§ 4-6 must be read in connection with § 15. It follows from this section that the terms of wages and employment must be considered as a whole when determining whether the regulation is applicable.
To § 4 Terms of wages for employees in engineering and technology industry:
To No 1: The rates correspond to the minimum wage rates in the collective agreement, but must be read in connection with § 7.
To No 2: This supplement amounts to 20 % of the wage rates and shall compensate for the inconvenience of staying away from home. The employee is entitled to the supplement only if the necessity of staying away from home is due to the need of the enterprise. Cf. also VO

§ 7.1 first paragraph.
To No 3: The provision, which applies for shift work, is copied from VO § 6.3.
To § 5 Terms of wages for employees in construction work:
To No 1: The rates correspond to the minimum wage rates in the collective agreement, but must be read in connection with § 7.
To No 2: The provision, which applies for shift work, is copied from FOB § 6.4.
To § 6 Terms of wages for employees employed in installation, servicing and repair work on electrical installations and automatization installations:
To No 1: The rates correspond to the minimum wage rates in the collective agreement, but must be read in connection with § 7.
To No 2: This supplement amounts to 13.2 % of the wage rates and shall compensate for the inconvenience of staying away from home. The employee is entitled to the supplement only if the necessity of staying away from home is due to the need of the enterprise. Cf. also LOK

§ 9.
To No 3: The provision, which applies for shift work, is copied from LOK § 8 E.
To § 7 Supplement to minimum hourly pay:
The provision shall ensure that employees who are covered by this regulation, in addition to the minimum wage rates according to §§ 4 No 1, 5 No 1 and 6 No 1 respectively, shall be evaluated as regards wage level in the same way as Norwegian workers covered by VO, FOB or LOK. The wording of the provision is copied from VO § 4.1.3.

To § 8 Working hours:
The provision settles the main rule according to the collective agreements which is 37,5 hours a week in average. The provision also contains rules on average weekly working hours for shift work. Furthermore, it clarifies that the possibility of calculating average working hours according to AML chap. X also applies for employment relationships covered by this regulation. The aim is to give the enterprises the opportunity to enter into the regular working schedules on the installations.

To § 9 Supplements for overtime work:
The provision means that the employee is entitled to supplement for overtime work if he works more than the average weekly working hours of 37,5 hours a week or the limits for shift work according to § 8. If the opportunity to agree on divergent working schedules is used, cf. § 8 above, the right to supplements for overtime work must rely on the limits in such agreements.

To § 10 Holiday:
The provision gives the employee a total right to holiday allowances from the employer according to the Holiday Act and tariff regulations on extended holiday, but it does not give a right to a fixed number of holidays. This is based on the assumption that the right to holiday allowances is most important for the majority of the employees covered by this regulation. In addition, the Holiday Act’s provisions on holidays and taking of holidays will also apply.

§ 11 Public holidays, 1. and 17. May:
Ordinarily, the employee is entitled to regular pay on public holidays, 1. and 17. May if such days otherwise would have been working days. The entitlement is limited if the employee is absent from work in immediate connection to such holidays. A certain continuity in the employment relationship is also required. Both the collective agreements and the Act relating to 1. and 17. May as public holidays contains similar provisions.

To § 12 Other supplements:
The provision is meant to intercept different supplements covered by the collective agreements. What supplements and which amounts are to be determined by agreement between the employee and the employer. Supplements for dirty work, working clothes or tools are some examples, but the use of this provision must be seen in connection with common practice on the installation in question.

To § 13 Compensation for travelling andboard and lodging expenses:
The collective agreements have many different and very detailed provisions on compensation for this kind of expenses. Thus, the Tariff Board proposes a provision without any fixed sum or standard. However, it instructs the employer to enter into an agreement with the employee on the coverage of such expenses. As for travelling expenses, the employer is obliged to cover at least the employees actual costs, but that a reasonable number of journeys home shall be agreed upon. Before concluding such agreements, it will be natural to seek guidance in the corresponding provisions in the collective agreements; VO § 7, FOB chapt. 7 and LOK§ 9.

§ 14 Accommodation requirements:
The provision in § 14 is restricted to necessary minimum requirements on accommodations, at the same time as the requirements on construction, equipment and maintenance must be in accordance with AML § 8 nr. 3. It is emphasized that the demands must correspond with common practice on the installation in question.
Chapt. III. Derogations etc.

To § 15 Derogations:
The provision emphasizes what also ensues from the General Application Act § 3, namely that terms of wages and employment derived from this regulation, are minimum terms. If an employee who falls within the scope of this regulation already is entitled to better terms, either by individual agreement, collective agreement or by law, such terms will still apply.

To § 16 Terms of wages and employment in law or regulations:
The provision has just a information purpose and emphasizes that rules or regulation with relevance to the employment relationship deriving from other laws or regulations are applicable as well. The provision lists the most important acts, but is not exhaustive.

According to AML § 73 M forth to sixth paragraph, chapt. XII B of the Act is not applicable for some employees on very brief assignments. This limitation also follows from the General Application Act § 3 first paragraph. This means that this regulation not will apply for posted skilled or specialized workers on particular assignments where the assignment period not lasts for more than eight days, cf. AML § 73 M forth to sixth paragraph. It is presumed that the extent of this exception is restricted.
Chapt. IV. Entry into force etc.

To § 17 Entry into force and termination:
As a main rule regulations at the earliest can be made applicable from the time of announcement in Norsk Lovtidend, cf. the Public Administration Act § 39.
This regulation enters into force on…………….. and will as from this day on apply to all enterprises and employment relationships falling within it’s scope, i.e. that enterprises offering poorer terms on wages and employment than what follows from the regulation, are obliged to offer the new and better terms ………. The Tariff Board is aware of the considerable economic consequences this might have for some enterprises, viewed against the conditions of the original tender. However, The Tariff Board bases the proposal on the view  that this is no more than can be expected if the employees decide to unionise and put forward a claim for a collective agreement. If the regulation only should be applicable for contracts signed after …….., firstly, it could lead to unreasonable and incidental differences in terms of wages and employment and secondly result in substantial variations in cost level for the enterprises. Such occasional differences might for some assignments be maintained for very long periods.

The regulation is terminated at the latest one month after VO (2004-2006), FOB (2004 – 2006) and LOK (2002 – 2004) are replaced by new agreements. The parties to VO and FOB have already entered into new agreements for the period 2004 – 2006. The parties to LOK has not yet finished the renegotiations. LO will demand for continued general applicability for the actual agreements when the agreement revisions are concluded.

Regulation on general application of wage agreements for petroleum installations onshore.

Established by the Tariff Board with authority in Act 4. June 1993 No 58 relating to general application of wage agreements etc. on the basis of:
1. The Engineering Industry Agreement (VO) 2004 - 2006, between the Norwegian Federation of Trade Unions (LO) and the Norwegian United Federation of Trade Unions (FF) on the one side and the Confederation of Norwegian Business and Industry (NHO) and the Federation of Norwegian Manufacturing Industries (TBL) on the other side,
2. the Construction Agreement (FOB) 2004 – 2006 between LO and FF on the one side and NHO and the Federation of Norwegian Construction Industries (BNL) and the Federation of Norwegian Technical Contractors (TELFO) on the other side, and
3. the Electrical Installation Agreement (LOK) 2002 – 2004  between LO and the Electricians & IT Workers Union (EL&IT) on the one side and NHO and TELFO on the other side.
Chapt. I. Introductory provisions

§ 1 Geographical scope
This regulation applies for the following petroleum installations onshore:
 Melkøya (Snøhvit) in Hammerfest municipality, Finnmark
 Tjeldbergodden in Aure municipality, Møre og Romsdal
 Mongstad in Lindås municipality, Hordaland
 Kollsnes in Øygarden municipality, Hordaland
 Kårstø in Tysvær municipality, Rogaland
 Nyhamna (Ormen Lange) in Aukra municipality, Møre og Romsdal
 Sture in Øygarden municipality, Hordaland
This regulation does not apply to related activities performed outside the geographical areas of the installations.

§ 2 For whom the regulation applies
This regulation applies for skilled and unskilled production workers on installations covered by § 1 performing:
 Assembling and installation work in engineering and technology industry.
 Construction work.
 Installation, servicing and repair work on electrical installations and automatization installations.
A skilled worker is a worker with an officially approved trade certificate or similar within his line of work.
The regulation does not apply for apprentices and young workers under 18 years of age.
The regulation does not apply for employees already covered by VO, FOB or LOK.

§ 3 The enterprise’s responsibility
Enterprises performing work covered by §§ 1 and 2 are responsible for implementing this regulation. The responsibility rests on the employer or any person managing the enterprise on the employer’s behalf.
Chap. II. Terms of wages and employment

§ 4 Terms of wages for employees in engineering and technology industry
1. Employees in engineering and technology industry shall as a minimum receive the following hourly pay:
a. Skilled workers NOK 110, 59
b. Unskilled workers NOK 105,44
2. If work tasks make overnight absence from home necessary, the employees shall receive the following supplements to hourly pay:
a. Skilled workers NOK 22,19
b. Unskilled workers NOK 21,09
No 2 does not apply to employees taken on at the work site.
3. On installations covered by § 1 using shift work, the following supplements shall be paid:
3.1. For work on a 2-shift system (36,5 hours a week) the following supplements shall be paid per hour:
1. shift until 14.00 hours on Saturday: No supplement
2. shift: NOK 12,42
For shift work after 14.00 hours on days before Sundays and public holidays: NOK 26,53.
From 14.00 hours on Christmas Eve, New Year’s Eve, Easter Eve and Whit Saturday: NOK 38,03.
Every hour after 24.00 hours is paid as for 3. shift.
3.2 For work on a 3-shift system (35,5 hours a week) the following supplements shall be paid per hour:
1. shift until 14.00 hours on Saturday: No supplement
2. shift: NOK 12,80
3. shift: NOK 19,05
For shift work after 14.00 hours on days before Sundays and public holidays: NOK 27,30.
From 14.00 hours on Christmas Eve, New Year’s Eve, Easter Eve and Whit Saturday: NOK 39,10.
For wholly continuous 3-shift work (33,6 hours a week) the following supplements shall be paid per hour:
1. shift until 14.00 hours on Saturday: No supplement
2. shift: NOK 13,56
3. shift: NOK 20,12
For shift work after 14.00 hours on days before Sundays and public holidays: NOK 28,83.
From 14.00 hours on Christmas Eve, New Year’s Eve, Easter Eve and Whit Saturday: NOK 41,32.

§ 5 Terms of wages for employees in construction work
1. Employees in construction work shall as a minimum receive the following hourly pay:
a. Skilled workers NOK 125,00
b. Unskilled workers NOK 114,00
2. On installations covered by § 1 using shift work, supplements are to be paid according to following provisions:
2.1 General provisions
It is permitted to use shift work in accordance with the provisions laid down in the Working Environment Act  (AML) Chapt. X. When shift work is used, a working plan shall be drawn up in accordance with AML § 48.
Supplements shall only be paid for shift work lasting minimum six days. Other shift work shall be paid as overtime.
2.2 Shift work supplements per hour
2. shift on weekdays: NOK 18,21
3. shift on weekdays: NOK 29,07
Supplements on Saturdays after 13.00 hours and on days before public holidays after ordinary working hours: NOK 72,31.
If an employee by transition from day work to shift work or the opposite within 24 hours (from 00.00 hours to 24.00 hours) is working more hours than normal for the actual 24 hour period, the employee shall receive overtime supplement for the extra hours.
2.3 Overtime work in connexion with shift work
For overtime work before or after a shift, a 50 % supplement to the shift supplement shall be paid. For work on Saturdays after 13.00 hours, on days before public holidays after ordinary working hours and on Sundays and public holidays, a 50 % supplement shall be paid.
2.4 Conversion factor
By conversion from ordinary working hours, 37,5 hours a week, to diverging working schedules, the table given below shall be followed:
From 37,5 hours a week to 36,5 hours a week =  2.74 %
From 37,5 hours a week to 35,5 hours a week =  5.63 %
From 37,5 hours a week to 33,6 hours a week = 11.61 %

§ 6 Terms of wages for employees employed in installation, servicing and repair work on electrical installations and automatization installations
1. Employees employed in installation, servicing and repair work on electrical installations and automatization installations shall as a minimum receive the following hourly pay:
a. Skilled workers NOK 134,20
b. Unskilled workers NOK 112,87
2. If work tasks make overnight absence from home necessary, the employees shall receive the following supplements to hourly pay:
a. Skilled workers NOK 17,71
b. Unskilled workers NOK 14,90
3. On installations covered by § 1 using shift work, the following supplements shall be paid:
3.1  2-shift system – 36,5 hour a week
A 2-shift system means that working hours alternate between day and evening (one week day work and one week evening work). 2-shift systems can be agreed upon within the period of 06.00 hours and 24.00 hours on ordinary workdays.
3.2  Supplements
Supplements shall be calculated on the basis of minimum hourly pay according to § 6 No 1. The supplement shall cover a nuisance compensation which amounts to 18.3 %. There is no supplement for day shift.
3.3  3-shift system – 35,5 hours a week
A 3-shift system means that working hours alternate between day, evening and night (one week day work, one week evening work and one week night work). 3-shift systems can be agreed upon within the period between 22.00 hours on Sundays and 06.00 hours on Saturdays.
3.4  Supplements
Supplements shall be calculated on the basis of minimum hourly pay according to § 6 No. 1. The supplement shall cover a nuisance compensation which amounts to 18.3 % for 2. shift and 29.3 % for 3. shift. There is no supplement for day shift
3.5  Wholly continuous shift work - 33,6 hours a week
Wholly continuous shift work is performed day and night without stoppage on Sundays and public holidays and is alternating between day, evening and night work according to a fixed shift plan.
3.6  Supplements
Supplements shall be calculated on the basis of minimum hourly pay according to § 6 No. 1. The supplement shall cover a nuisance compensation which amounts to 18,3 % for 2. shift and 29.3 % for 3. shift. There is no supplement for day shift.
On Saturdays after 13.00 hours and on days before public holidays after ordinary working hours the supplement shall cover a nuisance compensation which amounts to 73.2 %. On Sundays and public holidays before 22.00 hours the nuisance compensations shall also be 73.2 %.

§ 7 Supplement to minimum hourly pay
All employees covered by this regulation shall be paid a supplement to minimum hourly pay, cf. §§ 4 No 1, 5 No 1, 6 No 1, according to their skills, qualifications, experience, responsibility and job contents.

§ 8 Working hours
The ordinary daily working hours shall not exceed an average of 37,5 hours a week.
When working shift the following limits are applied:
– 2-shift system 36,5 hours a week in average
– 3-shift system 35,5 hours a week in average
– Wholly continuous shift system 33,6 hours a week in average
Deviating working schedules may be agreed upon according to the provisions laid down in AML Chapt. X.

§ 9 Supplements for overtime work
For work after ordinary working hours a 50 % supplement to hourly pay shall be paid. For work after ordinary working hours between 21.00 hours and 06.00 hours and on Sundays and public holidays a 100 % supplement to hourly pay shall be paid.

§ 10 Holiday
The employee is entitled to 12 % holiday allowances from the employer. The allowances shall be calculated on the basis of the total remuneration for the period the employee has been working on the installation, cf. §§ 1 and 2. Compensation for car expenses, expenses for board and lodging etc. is not a part of the total remuneration.
Further provisions for holiday allowance payment and taking of holidays are laid down in the Holiday Act.

§ 11 Public holidays, 1. and 17. May
Lost earnings for public holidays, 1. and 17. of May which ordinarily would have been work days, shall be compensated by ordinary pay unless the employee has been absent from work the work day before or after the public holiday.
Entitled to such compensation are employees who have been continuously employed at the same enterprise for at least 30 days before the public holiday, or have been employed later and the employment will be of at least 30 days duration. In this connexion the three-days public holiday at Easter is counted as one unit and the two-days public holiday at Christmas plus New Year’s Day are counted as one unit.

§ 12 Other supplements
Other supplements, e.g. for extremely dirty work, working clothes and tools, may be agreed upon between the employee and the employer in accordance with common practice at the installation.

§ 13 Compensation for travelling and, board and lodging expenses
If work tasks make overnight absence from home necessary, the employer is obliged by further agreement to compensate the actual costs for a reasonable number of journeys home. The employee and the employer shall also conclude an agreement on compensation for reasonable board and lodging expenses.

§ 14 Accommodation requirements
Accommodation placed at the disposal of the employee shall be in proper condition, equipped and maintained in accordance with ordinary good standard at the installation.
Chapt. III. Derogations etc.

§ 15 Derogation
This regulation is not applicable if the employee, based on a total assessment, is covered by more favourable terms of wages and employment according to agreement or the law of the country which ordinarily applies for the employment relationship.

§ 16 Terms of wages and employment in law or regulations
Provisions in law or other regulations which ordinarily are applicable for the employment relationship is also applicable for employment relationships covered by this regulation, see especially:
– Act 4. February 1977 No 4 relating to Worker Protection and Working Environment,
– Act 29. April 1988 No 21 relating to Holidays and
– Act 26. April 1947 No 1 relating to 1. and 17. May as public holidays.
This regulation applies within the restrictions of the exclusionary provision laid down in AML Chapt. XII B.
Chapt. IV. Entry into force etc.

§ 17 Entry into force and termination
This regulation enters into force…………..
This regulation is terminated 1 month at the latest after the Engineering Industry Agreement (VO) 2004-2006 between LO and NHO, the Construction Agreement (FOB) 2004 – 2006 between LO and NHO and the Electrical Installation Agreement (LOK) 2002-2004 between LO and NHO are replaced by revised collective agreements.


2 Addresses
Statoil Stavanger
HYDRO ASA Oslo
AMS GmbH & Co. KG Tyskland
Cegelec Construction GmbH
c/o Norsk-Tysk Handelskammer Oslo
Käefer Nesttun
West Team Godvik
Vestkran Ågotnes
Solid Vedlikehold Ågotnes
IKM Ågotnes
Øygarden Elektro Tjeldstø
Torsvik Elektriske Rong
Harkestad Tjeldstø
Reinertsen Orkanger AS Orkanger
Q-Star Manpower Danmark
AFS-Phil Hammerfest
Tractabel Industri Belgia
Aker Stord AS Stord
Veidekke ASA Oslo
AF VS Gruppen Oslo
Hammerfest Elverk Hammerfest
SAR Tananger
Linde AG Tyskland
Euro Industries Danmark
Scantec Lars Ovesen Danmark
Siemens Oslo
Petter Gagama Hammerfest
Malthus AS Stavanger
Arne Olsen AS Hammerfest
Aker Kværner Elektro AS Stord
NLI Alfr.Andersen Larvik
Larsen Maskin og Transport Hammerfest
Entreprenørservice Rud
L & H Rørbygg Danmark
Ølen Betong Ølensvåg
Alta Lasstebilsentral AL Alta
Einar Stene AS Alta
J.Rognerud AS Sørum
Røstad Entreprenør As Verdal
Havator Alta
Rolf Wee Transport As Førresfjord
AS Nord-Klima Harstad
Elektro AS Bodø
Kruse Smith AS Kristiansand
Dalseide & Fløysand Group AS Kokstad
Brødrene Langset AS Lyngstad
ABB Offshore Danmark
Kjell Eriksson Oslo
BM Steel Danmark
Industriteam AS Oslo
Adecco Norge Hammerfest
Rent & Montage AB Vøyenenga
Euro Contracting AS Sverige
Entrepose Contracting Hammerfest
Moelven Elektro Moelv
Skanska Sverige AB Sverige
ABB Offshore Systems AS Billingstad
Helland Elektro Mongstad
Mongstad Elektro Mongstad
Gunnar Karlsen AS Bergen
Leikvoll Smed & Mekaniske Austrheim
Radøygruppen AS Sæbøvågen
YIT Building System AS Mongstad
West Piping AS Mongstad
Nordhordland Grunn og Betong AS Mongstad
Magne Hope AS Lindås
Lindås VVS Lindås
Furmanite AS Porsgrunn
Crawford Door Bergen
Heis-Tek Bergen Godvik
Aker Offshore Partner AS Ågotnes
Norisol Norge AS Porsgrunn
Djønne Maskin Garnes
NCC Construction AS Oslo
Fjell Industrier Straume
Fjeldstad Stokke
Aker Kværner Process Nederland
Fabricom Stavanger
Emil Lundgren Sverige
Rheinhold & Mahla Industrier AS Sandnes
Mammoet Norge AS Skien
GM Industries APS Danmark
Scan Con Industries Danmark
SIS Industriservice Danmark
AGR Service / AGR EMI Team AS Straume
Anko Oppmåling Stavanger
Waco Isolering AS Stavanger
UNIFAB AS Bodø
Veidekke Haugesund
Stangeland Kran Stavanger
Rolls Wood Group Great Britain
Vest Elektronikk Randaberg
General-Electric Great Britain
Dresser Kongsberg
Atlas Copco Ski
Ildfast Vestby
Spirrax Hagan
GE/PII Pipetronix Tyskland
RC Sandnes
National Oilwell Norway AS Kristiansand
KH Technomarine Ltd Great Britain
Hydratight Sweeney Ltd Great Britain
Rontgen Technische Dienst Nederland
Plugging Spesialists Int. AS Stavanger
Fabricom avd. VIMEK Førresfjorden
Icopal Tak Vest AS Sveio
R.B.Johannessen AS Haugesund
Stålteknikk AS Stavanger
Heimdals Plastprodukter Kristiansand
Thermotech Norge As Haugesund
Rogaland Material Inspeksjon AS Stavanger
IKM Testing AS Sola
GMC Shipping Stavanger
Aker Inspection & Consulting Sandsli
TH BHAS Bygg AS Rong
Simex, Bergen AS Laksevåg
Pilkington Norge AS Stavanger
Øygarden Elektriske AS Tjeldstø
VA-IFAS Personalservice Tjeldstø
MSG Personalleasing Tyskland
Warmeverwertung GmbH Tyskland
Mammoet Germany
Mammoet Europe Nederland
AGR (PSL) Straume
MCE Voest GmbH & Co Østerrike
Stahlbau Tyskland
Foxboro Eckardt GmbH Tyskland
Käefer Isoliertechnik Gmbh & Co Tyskland
Peiniger RöRo GmbH & Co Tyskland
Kraftanlagen Anlagentechnik Munchen Tyskland
Malermester Røed Loddefjord
Takarbeid DA Nyborg
Heldal Mekaniske AS Nesttun
Termoizolacja SA Polen
MCE Voest VEA GmbH Tyskland
VAM GmbH & Co Østerikke
PIH Services England
Essener Hochdruck Tyskland
ACCO GesmbH Østerrike
Hoogveld Quality Services Nederland
KARO Ûitzendbûreaû Nederland
Soldometal Lda Portugal
Dirk Winkler Montageservice Tyskland

Arbeids- og administrasjonsdepartementet Oslo
Finansdepartementet Oslo
Justis- og politidepartementet Oslo
Nærings- og handelsdepartementet Oslo
Olje- og energidepartementet Oslo

Direktoratet for arbeidstilsynet Oslo
Petroleumstilsynet Stavanger
Landsorganisasjonen i Norge Oslo
Fellesforbundet Oslo
EL & IT Forbundet Oslo
Yrkesorganisasjonenes Sentralforbund YS Oslo
Akademikerne Oslo
Utdanningsgruppenes Hovedorganisasjon Oslo
Arbeidssøkerforbundet Oslo
Det norske Diakonforbund Oslo
Forbrukersamvirkets Lederforbund Olo
Luftfartens Funksjonærforening Oslo
Lederne Oslo
FarmasiForbundet Oslo
NITO Oslo
Norges Farmaceutiske Forening Oslo
Norsk Flygerforbund Lysaker
Norsk Flytekniker Organisasjon Gardermoen
Fagforbundet Oslo
Norsk Merkantilt Forbund Oslo
Norsk Journalistlag Oslo
Norsk Kabinforening Oslo
Naturviterforbundet Oslo
Politiets Fellesforbund  Oslo
Norsk Sjøoffisersforbund Oslo
Norsk Skuespillerforbund Oslo
Norske Meierifolks Landsforening Oslo
Olje- og energikartellet   Bergen
Prosessindustriens Landsforening Oslo
Den norske jordmorforening Oslo
Næringslivets Hovedorganisasjon Oslo
Teknologibedriftene Landsforening Oslo
Tekniske Entreprenørers Landsforening Oslo
Byggenæringens Landsforening Oslo
Finansnæringens arbeidsgiverforening Oslo
Handels- og Servicenæringens Hovedorganisasjon Oslo
Landbrukets Arbeidsgiverforening Oslo
Maskinentrepenørenes Forbund Oslo
Norges Apotekerforening  NAF Oslo
Arbeidsgiverforening NAVO  Oslo
Norges Taxiforbund Oslo
Samvirkeforetakenes Forhandlingsorganisasjon (SamFo) Oslo
Bedriftsforbundet Oslo
Transportbrukernes Fellesorganisasjon Oslo
Arbeidssamvirkenes Landsforening Oslo
Kirkens Arbeidsgiverorganisasjon Oslo
Kommunenes Sentralforbund Oslo
Professor Stein Evju Oslo
Info Tjenester AS Sarpsborg
Forskningstiftelsen FAFO Oslo
UiO - Senter for arbeidslivsstudier Oslo
UiO - Institutt for offentlig rett v/professor Henning Jakhelln Oslo


 

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