Address at conference for social dialogue between Norway and Brazil

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Vice Minister Lambertucci,
Senhoras e senhores, Dear all, 

First of all, I am very happy to have this opportunity to speak to you about the Norwegian Government’s policy on social dialogue.

I came to Brazil yesterday, and had very good and constructive meetings with Minister Dulci and the Ministry of Foreign Affairs. I am sure this day also will be fruitful.

We held a general election in Norway last month, and the good news is (at least for me) that the sitting centre-left coalition Government had its mandate renewed for four more years.

Two weeks ago we presented the new platform for the government, and in that platform social dialogue, corporate social responsibility and decent work are highlighted as key priorities for the Norwegian Government.

These interconnected topics are important both in our national policies, but also in our international policies.

So let me be clear: Our government is fully committed to this agenda, and therefore we are also fully committed to following up the ongoing social dialogue process between our two countries.

Yesterday I discussed this with minister Dulci, and I now that the Brazilian government is as committed as we are. That is good.

I strongly believe that the excellent and dynamic relations Norway and Brazil enjoy, both in the private sector and between our governments, has been a prerequisite for establishing the social dialogue process.

And of course: We would not have been able to start this process if it had not been for the commitment by you all.

Therefore I would like to commend you all on the work you have done so far, including the conferences and meetings that have been held and the research papers that have been produced.

My task in this speech is to give you a brief description of the Norwegian experience of social dialogue and tripartite cooperation, as seen from the Government’s point of view.

I will also use the opportunity to tell you how we work on issues concerning corporate social responsibility and decent work, as these are integrated policies.

Let me start with social dialogue and the tripartite system.

In general I would say that the tripartite system between workers, employers and the state refers to all forms of consultation, negotiation or simply exchange of information on issues of common interest relating to labour, social and economic policy.

The organisations on both sides are representative, strong and responsible. They are tough, with clear demands –you will meet some of them later today.

They have a clear understanding of their roles, but also an understanding of the rules of the game. I believe that is important, and for us as a government it is also important to be aware of our role.

The tripartite system will not work unless each party is independent and has a good understanding of the functions they are to perform.

Let me try to be more concrete on how this works in my country. For example the employers’ associations and trade unions are closely involved in preparing new legislation and labour regulations, and work in close cooperation with the Government, public administration and Members of Parliament, both in formal and informal settings.

Relevant committees are also established by the Government, and the organisations participate and make suggestions regarding political decisions and changes that will affect them.

Let me give you one example of how this works.

The Liaison Committee is an informal committee directly under the Prime Minister. Here, the Government and the organisations can discuss the basis for wage formation and the organisations can present their views in advance of the wage bargaining round. All the larger organisations participate in these meetings.

Several other important committees have been established, and deal with questions such as labour market issues and pension reform, key issues for most people.

Even though the tripartite-system relates to issues and questions related to social and economic development, let me also mention that contact with the trade organizations and the employers-organization is something I believe all ministries focus on.

In the Ministry of Foreign Affairs, we also have committees where the employers’ and employees’ organizations are represented.

So, that was a quick overview of how the tripartite system works, but one thing is how it works, which is important in itself. But it is not only a good model –it gives results!

I believe that the Norwegian model for social dialogue has been a crucial factor in our economic development.

In fact, social dialogue between democratic governments and independent workers’ and employers’ organisations has been one of the most important preconditions for achieving social development and social justice in Norway.

The International Labour Organization (ILO), of which both Brazil and Norway are members, claims that tripartite cooperation is the best way to promote better living and working conditions, as well as social justice.

The system can make the economy perform better. It can ensure that the economy is more competitive. It can make society more stable and fair. I believe this has been the case in my country.

The model has been so successful that there is a broad political consensus of the importance of the model. I think it’s safe to say that the social dialogue model has proven to be durable through shifting political regimes in Norway.

I am not saying that there is no longer any tension and conflict between the social partners. There will always be conflicts, but so far I think this model has served us well as a tool for finding acceptable solutions for the parties involved.

Above all, the model has proven to be invaluable in generating trust between the parties and it has thereby opened the way for dialogue and negotiated solutions.

Let me go to the question of corporate social responsibility.

The issue of corporate social responsibility is becoming increasingly important with a growing number of Norwegian businesses going abroad – many to Brasil - and in a situation where we see an increased amount of foreign investment.

That is why the Norwegian Government presented its first white paper to the Parliament on corporate social responsibility in January this year, one of the first comprehensive policies of its kind.  

The timing of this white paper may seem surprising. As the world was escalating into the worst recession in decades, as we were discussing the soundness of the financial sector and possible outcomes for Norwegian business and industry, the Government sent a message to Norwegian enterprises about their social and environmental responsibility.

We are of course fully aware of the tough times many enterprises are experiencing, and that companies are leaving no stone unturned in the quest to cut costs. But this does not remove the need for responsible business conduct. 

Working with the white-paper we had close co-operation both with the trade unions and the employer’s organisation –another example of the effect of the tripartite-system.

In the white paper, the Norwegian Government expresses its clear expectations of Norwegian companies:

First of all, companies are expected to respect human rights in all their operations.

Secondly, companies are expected to respect the rights of employees and create decent working conditions. The Norwegian Government has signed a NOK 100 million agreement with the International Labour Organisation (ILO), supporting this work.

Thirdly, companies are expected to take into account environmental considerations. Public–private partnerships will be invaluable in developing climate policies and new technologies.

The Government’s fourth expectation of companies is that they engage in fighting corruption and in increasing transparency.

I believe that when a company demonstrates transparency about its operations and their impacts on people and the environment, this builds legitimacy.

As far as the Government’s own activities are concerned, it aims for the public sector to be at the forefront when it comes to socially responsible procurement, ownership and investments.

This is particularly important because of the high degree of public engagement in the Norwegian private sector. Government ownership interests in companies listed on the Oslo Stock Exchange was nearly 40% at the end of 2008.

The Norwegian Government Pension Fund established ethical guidelines for its international investment in 2004, and cooperates with companies on corporate governance, child rights and corporate environmental lobbying.

Around 30 companies have been excluded from the Fund’s investment portfolio because of violations of the guidelines. One of them is the US-based Walmart.

A part of corporate social responsibility is decent work.

In September 2008 the Norwegian Government launched a seven-point strategy to promote decent work globally.

Our goal with this strategy is to strengthen Norwegian policies for decent work, and make them more accountable and coherent.

Foreign policy, international development policy, trade and industrial policy all influence working conditions both in our own country and in other countries.

Our approach in these different areas must therefore be more systematic and guided by the same considerations and principles.

Thus, decent work will be increasingly important in several of our policy areas, in our bilateral relations as well as in international forums. We are aware of the difficulties involved in ensuring decent work.

Therefore it is important with a closer dialogue and cooperation with Brazil and others in order to overcome them. We also believe that social dialogue plays a vital role in advancing the discussion on this issue, both nationally and internationally.

Let me sum up with some overall reflections.

Globalisation has brought great benefits, but also important new challenges, not least to labour markets – for governments, workers and employers alike.

Only by making globalisation fair can we make it legitimate, and only by making it legitimate can we make it sustainable. And not only sustainable –sustainable also in the sense that it creates economic growth.

That is our experience in Norway. And that is a key issue and the reason why I think that this model has survived through different political regimes in Norway –and has a broad support. It gives us growth.

The global crisis has led to job losses and deteriorating working conditions, and it has exposed weaknesses in the international economic system.

Therefore we put great emphasis on the speech by President Lula at the ILO Summit on the Global Jobs Crisis in Geneva in June this year, which addressed exactly these issues.

At that event our Foreign Minister Støre hosted a side-event on the financial crisis, on decent work as a prerequisite and a tool to counter the crisis.  

Brazil’s membership of the G20 is in that regard also important.

We were happy to see that the Pittsburgh meeting emphasised the G20 countries’ commitment to implementing recovery plans that support decent work, employment, job growth and social protection.

Fair globalisation is possible, but only through better regulation and international cooperation and by focusing on poverty alleviation and decent work.

I believe that this conference today is of great importance. It brings a new dimension to the bilateral relationship between Norway and Brasil.

If we all are committed, I am sure that this conference will be a success.

Thank you for your attention.