In the wake of minimum wage protests in the US, I thought I would address the issue of the Norwegian minimum wage. I'm sure that you're thinking it's something astronomically high, because of all the socialism they've got going on. Well you're wrong.
Norway has no minimum wage.
That said, it's no libertarian, free-market paradise; as will be discussed in a later post, taxes are some of the highest in the world. So, why no minimum wage? The answer (this time) has to do with the Norwegian political ideology of 'Social Democracy'.
In Norway, as well as several other countries like Austria, Sweden, Switzerland, and Denmark, wages are reached through collective bargaining, between unions and employers. Unlike the US, where unions have collapsed following anti-union legislation over the second half of the twentieth century, unions are very much alive, kicking, and screaming in Norway.
At this point, you're probably thinking that this sounds suspiciously like Soviet Russia, France, or pre-Thatcher Britain. Not so much. In Norway, union membership is common (but not mandatory), with 1/5 of the population (I'm not sure about the workforce) being in unions. Unions in Norway are a diverse grouping with jobs including civil servants, teachers, pilots, police, journalists, news editors, IT, and musicians. These unions are covered by four "umbrella" or "federation" unions which represent the interests of groups of unions (for instance, The Norwegian Confederation of Trade Unions).
All that said, the rights of the worker are not the only consideration. Unions include not just employees, but also employers, representing the interests of businesses and themselves bargaining with employee's unions.
So, employers and employees bargain together and decide on what wage is appropriate for that work, in line with the cost of living, inflation, and other factors. The benefits of this extend to both union and non-union members, with non-union members receiving the wages which are collectively bargained.
But, what about a rough number for the minimum wage?
What? Base pay, pay after 6, pay after 9, Saturday pay, closed shops on Sundays? It's called ubkvemstillegg and it will be explained in Part 2, later this week.
Norway has no minimum wage.
That said, it's no libertarian, free-market paradise; as will be discussed in a later post, taxes are some of the highest in the world. So, why no minimum wage? The answer (this time) has to do with the Norwegian political ideology of 'Social Democracy'.
In Norway, as well as several other countries like Austria, Sweden, Switzerland, and Denmark, wages are reached through collective bargaining, between unions and employers. Unlike the US, where unions have collapsed following anti-union legislation over the second half of the twentieth century, unions are very much alive, kicking, and screaming in Norway.
At this point, you're probably thinking that this sounds suspiciously like Soviet Russia, France, or pre-Thatcher Britain. Not so much. In Norway, union membership is common (but not mandatory), with 1/5 of the population (I'm not sure about the workforce) being in unions. Unions in Norway are a diverse grouping with jobs including civil servants, teachers, pilots, police, journalists, news editors, IT, and musicians. These unions are covered by four "umbrella" or "federation" unions which represent the interests of groups of unions (for instance, The Norwegian Confederation of Trade Unions).
All that said, the rights of the worker are not the only consideration. Unions include not just employees, but also employers, representing the interests of businesses and themselves bargaining with employee's unions.
So, employers and employees bargain together and decide on what wage is appropriate for that work, in line with the cost of living, inflation, and other factors. The benefits of this extend to both union and non-union members, with non-union members receiving the wages which are collectively bargained.
But, what about a rough number for the minimum wage?
- For working in a supermarket, 120 kroner (£12 or $20) per hour, with an additional 20 kr for working after 6pm, and an additional 40 kr (20 more) after 9pm.
- In a boutique, 150 kr/hour base salary with 150% pay for working on Saturdays.
- As for Sundays, all businesses are closed by law (unless you are a food shop that is smaller than 100 square metres).
What? Base pay, pay after 6, pay after 9, Saturday pay, closed shops on Sundays? It's called ubkvemstillegg and it will be explained in Part 2, later this week.