A wage agreement between the main trade union federation in Norway, the LO, and NHO (the employers’ organization, the NHO, was announced by both parties on Tuesday, April 1st 2025. They said that the framework was at 4.4 percent. Other key figures: five kroner in general hourly supplement for all members; two kroner in low-wage supplement for collective agreements where employees earn on average less than 90 percent of the average industrial worker’s wage; two kroner for the following collective agreements.
In a year characterized by significant price increases for household items, and with a general election taking place in September, the LO is prioritizing short-term considerations over the opportunity for a fair and substantial wage increase. This decision clearly demonstrates a lack of commitment to genuinely representing the best interests of their members. It also is an attempt at saving the Norwegian LP (AP) from the embarrassment of a strike during an election year.
The leader of the LO, Peggy Hessen, said: “We are satisfied with the settlement that we have now reached.” In a surprising turn of events, the state mediator announced that this round of negotiations wrapped up much earlier than anticipated. The LO and NHO have engaged in frequent and intense arguments since last fall, making their early agreement in mediation quite unexpected. “Could this be a sign that you have even better chemistry and dialogue between you both?” the State Mediator told the press.
The cost-of-living crisis gets worse in Norway. Household prices have and are increasing. A national newspaper, VG, states that it has recently received messages from worried readers with average incomes who report soaring prices for essential goods.
Over the past three years, food and beverage prices have risen by 25 percent. From February 2024 to February 2025, food prices rose by 7.6 percent, but everyday consumer items have skyrocketed in price.
The suppliers have a monopolistic grip over food in supermarkets. They need to be democratically nationalized under workers’ control and management; simply splitting them up (as some on the Norwegian Left want) will leave the owners still in control.
Electricity prices are significantly higher than they were before COVID. They have stabilised as have petrol and diesel prices but Trump’s tariffs have not yet kicked in.
Bank prices and mortgages. Currently, the mortgage price, according to the Central Statistics Bureau (SSB), is 6.5%. So, is a 4.4% wage increase truly adequate?
Debate over the new retirement age
Labour Minister Tonje Brenna believes that a higher retirement age is necessary to have enough workers and to secure the economy of the system.
There are grumblings at grassroots level in the trade union movement against the proposed changes to the retirement age limits. During the recent Trondheim Conference, plans were launched for a joint day of action to pressure the government to propose a change of course. But the government parties are holding their ground.
This key point was not addressed at any stage of the negotiations.
Wages for leaders and negotiators differ significantly from those of regular employees. Leaders and negotiators should not earn more than the regular workers they represent. These negotiations should be sanctioned by involving a shop stewards, pension representatives, and other bodies more connected to the rank and file workers and not these pampered union leaders.
All leaders should be subject to democratic recall if they fail to serve the workers adequately, and they must provide an explanation for their actions.
An independent commission to Investigate
The LO should establish an independent commission to thoroughly investigate the validity of the Sentral Statistics Bureau’s (SSB) assertion that inflation is merely 4.5%.
The commission should be composed of workers, unions, shop stewards and the local community.
The CWI in Norway say:
Make the rich pay for the cost-of-living crisis!
The trade unions must fight the new retirement age proposal.
A massive social housing programme; to bring jobs and end homelessness.
The nationalisation of the top supermarket chains, democratically run by workers, unions, and the local community, to ensure everybody can eat affordably.
For workers to inspect the profits of the big banks – open the books!
Nationalise the banks and insurance companies, under democratic workers’ control and management.
Renationalisation of the energy industry.
Huge government investment at regional and municipal levels, so that all the jobs lost can be re-gained, and affordable and properly functioning public services resumed.
A 30-hour working week, without loss of pay.
Reverse government cuts at all council levels.
For workers’/trade unions led mass campaigns to reverse climate change.
Socialist change to save the environment
Working class voters would welcome all these measures, alongside a full programme for socialist change.