The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 82/00

Date: 28 April 2000

60 PER CENT NO (Dagsavisen)

Norwegian Confederation of Trade Unions (LO) president Yngve Hågensen is the big loser after around 60 per cent of his members voted against the settlement negotiated with the Confederation of Norwegian Business and Industry (NHO). The stage is now set for a general strike starting next Wednesday. The Norwegian Union of Transport Workers rejected the settlement by an 85 per cent majority, but observers are waiting in suspense for the results of the vote in the Norwegian United Federation of Trade Unions, whose leaders have recommended the settlement. According to rumours, a No vote is likely here, too. This would clinch a resounding defeat for Mr. Hågensen and the other LO leaders, leaving opponents of the solidarity alternative in a stronger position as next year’s LO convention approaches.

LITTLE TO GAIN BY STRIKING (Vårt Land)

Strikes seldom pay, at least if the goal is a better wage settlement than what one’s opponents have offered. Torgeir Stokke, researcher at the Institute of Applied Social Sciences (FAFO), has found it difficult to find examples of strikes in the past decade which have produced significant improvements. Add to this the fact that striking workers earn no wages while they are on strike. Mr. Stokke says the government sector pay settlements have largely been determined by the settlements in the private sector, which have been characterized by a policy of moderation since the end of the 1980s. But a strike this year will not necessarily mean a farewell to moderation. Mr. Stokke points out that the LO has had to work hard every time to garner sufficient support for moderation.

ALVIK CASTIGATED IN REPORT (Aftenposten)

The Norwegian Board of Health has failed to perform its supervisory role in connection with the assisted suicide case in Bærum Hospital, its handling of the case was sloppy and marred by illegalities, and the official assigned to the case did not recognize its gravity and eventually proved to be disqualified by a conflict of interest. These are the conclusions of a report released yesterday by acting Director General of Health Petter Øgars. The report cannot be viewed as anything other than a sharp censure of Director General of Health Anne Alvik, who is on a leave of absence. Ms. Alvik has repeatedly characterized the work carried out by her agency as good.

STATE TO TRIM GOLDEN PARACHUTES (Dagens Næringsliv)

Inspired by Sweden’s example, Prime Minister Jens Stoltenberg is contemplating guidelines for salaries, severance pay and pensions for senior executives of state-owned corporations. One of the results may be to limit severance pay to the equivalent of two years’ salary. The controversy ignited by former Statoil chief executive Harald Norvik’s pension agreement has raised the question of the necessity of establishing standards regarding executive remuneration in state-owned corporations. Sweden has had guidelines in this area since 1994.

FUTURE UN OFFICIALS TO RECEIVE TRAINING IN OSLO (Aftenposten)

Norway will host a seminar for future leaders in the UN system next month, to be organized by the Norwegian Defence International Centre. The purpose of the seminar is to prepare civilian and military leaders to fill senior positions in UN operations. The seminar is aimed at people with military, police or diplomatic backgrounds, as well as people from NGOs. The first week of the seminar will take place Oslo from 14 to 20 May, and the rest in New York the following week. The Ministry of Foreign Affairs believes it should have some impact on our candidacy for a seat on the Security Council.

CONFLICT ANTICIPATED AS ELECTION OF NEW ORKLA DIRECTORS APPROACHES (Dagens Næringsliv)

A number of Orkla shareholders want Christian Sveaas, who was recently accumulated relatively large Orkla holdings, on the board of directors. Orkla chief executive Jens P. Heyerdahl will hardly share their enthusiasm, so we can expect some skirmishing to precede the election of new board members in the middle of June. Orkla is viewed as a management-dominated corporation in which Mr. Heyerdahl always has the last word.

WORTH NOTING

• A rejection of the private sector labour settlement will push demands up in the public sector. The Norwegian Federation of State Employees' Unions added NOK 500 to its demands in response to rumours of the defeat of the LO-NHO settlement. Public sector negotiations have halted pending the conclusion of the strike. (Dagens Næringsliv)
• Pressure on the krone continues to build, and its strength relative to the dollar and euro dropped noticeably yesterday. Short-term interest rates continue to rise. Attention is focussed on the outcome of the ballot referendum in the private sector. The krone hit a 15-year low against the dollar yesterday. As one broker comments, the exchange rate reflects a number of negative influences. (Aftenposten)
• Other leading banks are sitting on the fence after Gjensidige NOR yesterday raised its rates by 0.3 percentage points. Kreditkassen’s senior information officer, Kjell J. Flø, confirms that the Kreditkassen is also contemplating a rise in interest rates. (Aftenposten)
• The fall of the Norwegian krone against the Swedish krone has suddenly reduced the value of MeritaNordbanken’s bid for Kreditkassen by NOK 2.2 billion. The bid must be renewed today. (Dagens Næringsliv)
• Statoil has reportedly discovered a large oil deposit six km north of the Norne field. The reservoir seems to be substantially larger than what the geologists were expecting. Neither Statoil nor the Petroleum Directorate would confirm the find. (Stavanger Aftenblad/NTB)
• Minister of the Environment Siri Bjerke is open for the construction of further hydropower facilities on Nordland’s most important salmon-fishing river without the benefit of a new impact report. Centre Party chairman Odd Roger Enoksen intends to stop the case in the Storting. (Dagbladet)
• The Norwegian fjords are named Europe’s best natural attraction by the Chicago Tribune Magazine. The explanation for this choice is the unusual combination of dramatic scenery and colours. (NTB)

TODAY’S COMMENT from Nationen

The Norwegian krone is sliding. Another interest rate hike threatens, which could derail the labour settlement. Does anyone else recognize the sequence of events that took place early in the Bondevik Government’s period in office? Remember how Labour and other know-it-alls blamed the Bondevik Government for everything that went wrong, and declared that it was ineffectual and devoid of any talent for governing? Well, the Labour Party has effectively judged itself, and it has every reason to be embarrassed. Doubly so, considering the fact that Svein Gjedrem of Norges Bank, with his untimely interest rate increase, has behaved every bit as dogmatically and single-mindedly as central bank governors in the EU are supposed to. But that is the system Labour wants Norway to join, is it not? Or do they want to play down their aspiration to join the euro-economy now that the euro, too, is plummeting like a stone?