"The transitional arrangements have worked as intended thus far. They help to ensure ordered conditions for workers, and do not prevent access to needed workers from the new Member States,” said Labour and Social Inclusion Minister Bjarne Håkon Hanssen.

The Government therefore proposes in Report no. 9 to the Storting (2005-2006) that the transitional arrangements, which have covered individual workers from eight of the new EEA Member States since 1 May 2004, be continued for up to three years. It is the EEA enlargement agreement which allows for limitations on the free movement of workers, which otherwise applies in the EEA.

In 2005, over 37 000 work permits were granted in Norway, and the number of permits has risen further in 2006. Mr Hanssen points to the fact that there has been a rising need for workers, including in the building and construction industry.

“The availability of workers from the new EEA Member States has revealed some of this need. Of all the Nordic countries, Norway has had by far the highest influx of workers from the new EEA Member States,” said Mr Hanssen.

The enlargement and flow of workers has also entailed certain challenges for Norway, relating to the danger of social dumping, particularly in certain industries. Although the transitional arrangements work as intended, they do not adequately prevent social dumping, particularly in the service sector. The Government therefore intends to pursue active policies in this area, and will deal with these problems appropriately.

“I want to emphasise that the transitional arrangements can be lifted at any point during the three-year period. A new assessment will be carried out in the course of this period, not least against the background of the flow of workers from the new EEA Member States and whether the labour market is likely to weaken,” said the Minister. “At the same time, the Government will increase its efforts to ensure controlled wage and working conditions through other measures. If the transitional arrangements are not considered necessary in the light of this assessment, they can be phased out.”

The transitional rules can apply for up to seven years, divided into three periods (two years + three years + two years). This is intended to gradually open up the labour market and extend the right of free movement to individuals from these countries.

Norway must notify EFTA’s Surveillance Authority, ESA, of its decision by 1 May 2006. The transitional rules can be continued for the three-year period without further conditions, but can be lifted at any point.

Link to summary of White paper on Transitional Arrangements for Individual Workers from new EEA Member States