Questions and Answers about Compulsory Arbitration

What is compulsory arbitration?

Compulsory arbitration occurs when the government intervenes in a strike or lockout if the labor conflict poses a danger to life, health, or safety, or causes other serious societal consequences. The government then submits a proposition to the Storting, proposing a special law that prohibits continued industrial action and refers the interest dispute to the National Wage Board. The National Wage Board’s decision has the effect of a collective agreement between the parties.

Why does the government intervene in a strike with compulsory arbitration?

If a labor conflict poses a danger to life, health, or safety, or causes other serious societal consequences, the government can intervene with compulsory arbitration.

What conditions must be met for compulsory arbitration to be used?

Industrial action is a legal and legitimate tool for the parties in working life. The parties are responsible for conducting labor conflicts in a responsible manner, and society must generally endure the inconveniences a labor conflict may cause. Only if a labor conflict poses a danger to life, health, or safety, or causes other serious societal consequences, can the government consider intervening with compulsory arbitration. The threshold for intervention is high.

What happens when the government intervenes in a strike?

If the Ministry of Labor and Social Inclusion (AID), based on reports from relevant sector ministries, deems it necessary to intervene with compulsory arbitration, the Minister of Labor and Social Inclusion calls the parties to a meeting. The minister informs them that intervention is necessary. The minister asks the parties to consider stopping the conflict by finding a solution themselves. If the parties respond that this is not possible, the minister states that the government must intervene with compulsory arbitration. The minister asks the parties to accept this immediately and return to work as soon as practicable.
The government then quickly submits a proposition to the Storting (or a provisional ordinance if the Storting is not in session, which is a temporary rule with the force of law) proposing a special law that prohibits continued industrial action and refers the dispute to the National Wage Board. The National Wage Board’s decision has the effect of a collective agreement between the parties.

What reports does the ministry receive during a strike?

In cases where a strike may have consequences for life, health, or safety, or cause other serious societal consequences, the Ministry of Labor and Social Inclusion receives reports from other relevant sector ministries. If necessary, the sector ministries obtain reports from subordinate agencies. It is the sector ministries that report to AID.

How does AID receive reports on the consequences of a strike during a labor conflict?

The relevant sector ministries report in writing to AID. The frequency and extent of the reports depend on the specific circumstances and developments in the particular strike.

Are these reports public?

Information sent to AID in connection with wage settlements is generally exempt from public disclosure until the conflict is resolved.

Why is information about the sector ministries’ assessments during a strike not disclosed?

Information about the ministries’ assessments during a strike could influence the conflict. The parties are responsible for conducting labor conflicts. The authorities’ role is limited to intervening if the conflicts pose a danger to life and health or other serious societal consequences.

Why must the decision on compulsory arbitration be approved by the Storting?

In Norway, there is no general law on compulsory arbitration. Therefore, interventions in labor conflicts must be approved by the Storting on a case-by-case basis, following the regular procedures for passing laws.

What is a provisional ordinance?

It is a temporary law change adopted by the government (the King in Council). If the Storting is not in session when it is necessary to intervene in a labor conflict, the government can issue a provisional ordinance that prohibits continued industrial action and refers the interest dispute to the National Wage Board.

How long does it take for the Storting to process the case?

After a decision to intervene is made, AID prepares a legislative proposition that is submitted in the Council of State. The case is then referred to the Storting in the usual manner, where it is first considered by the Labor and Social Affairs Committee and then by the Storting in plenary. These cases are typically prioritized and processed quickly.

How long does it take for the National Wage Board to handle the labor conflict?

This depends on several factors. Only after the case is fully processed by the Storting is it referred to the National Wage Board, which then begins its consideration of the case. The National Wage Board must prepare the case. The parties must also have the opportunity to submit written statements and present their claims before oral hearings are held. After this, the National Wage Board issues its decision.