Regulation 24 November 2005 on general application of wage agreement for construction sites in the county of Hordaland

Regulation 24 November 2005 on general application of wage agreement for construction sites in the county of Hordaland

Established by the Tariff Board under the provision of Act 4 June 1993 No 58 relating to General Application of Wage Agreements etc. § 3.

Chapt. I. Introductory provisions

§ 1 The basis of general application

This regulation is established on the basis of the Construction Agreement (FOB) 2004 – 2006 between the Norwegian Federation of Trade Unions (LO) and the Norwegian United Federation of Trade Unions (FF) on the one side and the Confederation of Norwegian Business and Industry (NHO) and the Federation of Norwegian Construction Industries (BNL) on the other side.

§ 2 To whom the regulation applies

This regulation applies to skilled and unskilled employees in construction work at construction sites in the county of Hordaland.

A skilled worker is a worker with an officially approved trade certificate or similar within his line of work. An unskilled worker does not have such trade certificate.

The regulation does not apply to apprentices and participants in labour-market measures.

§ 3 The enterprise’s responsibility

Enterprises performing work covered by § 2 are responsible for implementing this regulation. The responsibility rests with the employer or any person managing the enterprise on the employer’s behalf.

Chapt. II. Terms of wages and employment¹

§ 4 Terms of wages for employees in construction work

1.      Employees in construction work, cf. § 2, shall receive as a minimum the following hourly pay:

1. Skilled workers: NOK 126,00
2. Unskilled workers: NOK 115,00

2.      When using shift work, supplements are to be paid according to following provisions:

2.1    General provisions

It is permitted to use shift work in accordance with the provisions laid down in Act 17 June 2005 No 62 relating to Working Environment, Working Hours and Employment Protection Chapt. 10. When shift work is used, a working plan shall be drawn up in accordance with Act 17 June 2005 No 62 relating to Working Environment, Working Hours and Employment Protection § 10-3.

Supplements shall be paid only for shift work lasting minimum six days. Other shift work shall be paid as overtime.

2.2    Shift work supplements per hour

2. shift on weekdays: NOK 18.45

3. shift on weekdays: NOK 29.50

Supplements on Saturdays after 13.00 hours and on days before public holidays after ordinary working hours: NOK 73.30.

If an employee by transition from day work to shift work or the opposite within 24 hours (from 00.00 hours to 24.00 hours) is working more hours than normal for the actual 24 hour period, the employee shall receive overtime supplement for the extra hours.

2.3    Overtime work in connection with shift work

For overtime work before or after a shift, a 50 % supplement to the shift supplement shall be paid. For work on Saturdays after 13.00 hours, on days before public holidays after ordinary working hours and on Sundays and public holidays, a 50 % supplement shall be paid.

2.4    Conversion factor

By conversion from ordinary working hours, 37.5 hours a week, to diverging working schedules, the table given below shall be followed:

From 37,5 hours a week to 36.5 hours a week =   2.74 %

From 37,5 hours a week to 35.5 hours a week =   5.63 %

From 37,5 hours a week to 33.6 hours a week =  11,61%

§ 5 Supplement to minimum hourly pay

All employees covered by this regulation shall be paid a supplement to minimum hourly pay, cf. § 4 No 1, according to their skills, qualifications, experience, responsibility and job contents.

§ 6 Working hours

The ordinary daily working hours shall not exceed an average of 37.5 hours a week.

When working shift the following limits are applied:

2-shift system                                    36.5 hours a week in average

3-shift system                                    35.5 hours a week in average

Wholly continuous shift system           33.6 hours a week in average

Deviating working schedules may be agreed upon or determined according to the provisions laid down in Act 17 June 2005 No 62 relating to Working Environment, Working Hours and Employment Protection Chapt. 10.

§ 7 Supplements for overtime work

For work after ordinary working hours a 50 % supplement to hourly pay shall be paid. For work after ordinary working hours between 21.00 hours and 06.00 hours and on Sundays and public holidays a 100 % supplement to hourly pay shall be paid.

§ 8 Public holidays, 1 and 17 May

Lost earnings for public holidays, 1 and 17 of May which ordinarily would have been work days, shall be compensated by ordinary pay unless the employee has been absent from work the work day before and after the public holiday.

Entitled to such compensation are employees who have been employed continuously in the same enterprise for at least 30 days before the public holiday, or have been employed later and the employment will be of at least 30 days’ duration. In this connection the three-days public holiday at Easter is counted as one unit and the two-days public holiday at Christmas plus New Year’s Day are counted as one unit.

§ 9 Other supplements

Other supplements, e.g. for extremely dirty work, working clothes and tools, may be agreed upon between the employee and the employer in accordance with common practice at the construction site.

§ 10 Compensation for travelling and board and lodging expenses

If work tasks make overnight absence from home necessary, the employer is obliged to conclude an agreement with the employee on compensation of the actual costs for a reasonable number of journeys home. The employee and the employer shall also conclude an agreement on compensation for reasonable board and lodging expenses.

§ 11 Accommodation requirements

Accommodation placed at the disposal of the employee shall be in proper condition, equipped and maintained in accordance with ordinary good standard.

Chapt. III.   Derogation etc.

§ 12 Derogation

This regulation is not applicable if the employee, based on a total assessment, is covered by more favourable terms of wages and employment according to agreement or the national law which ordinarily applies to the employment relationship.

§ 13 Terms of wages and employment in law or regulations

Provisions in law or other regulations which ordinarily are applicable to the employment relationship is also applicable to employment relationships covered by this regulation, see especially:

Act 17 June 2005 No 62 relating to Working Environment, Working Hours and Employment Protection,

Act 29 April 1988 No 21 relating to Holidays and

Act 26 April 1947 No 1 relating to 1 and 17 May as public holidays.

This regulation applies within the restrictions laid down in Act 17 June 2005 No 62 relating to Working Environment, Working Hours and Employment Protection § 1-7.

Chapt. IV.    Entry into force etc.

§ 14 Entry into force and termination

This regulation enters into force on 1 January 2006.

This regulation is terminated 1 month after the Construction Agreement (FOB) 2004 – 2006 between LO and NHO is replaced by a revised collective agreement or if the Tariff Board passes on a new decision on general application based on the same collective agreements.

Comments on the provisions

Chapt. I. Introductory provisions

To § 1 The basis of general application

In accordance with the claim from LO the regulation is based upon the Construction Agreement 2004 – 2006 (FOB) but besides from the wage clauses, few agreements clauses are directly implemented.

To § 2 To whom the regulation applies

The provision shall embrace all groups of employees and all kinds of activities falling within the scope of the collective agreement and within the geographical scope of the regulation.

Compared to the provisions of the agreement, the Board has made substantial simplifications, with the aim to achieve reasonably practical rules. The collective agreement itself should be consulted if there are difficulties in determining whether an individual employee falls under the regulation or not. The relevant provisions in FOB are § 1-1 No 1 first paragraph and Nos 2 to 4.

Skilled workers must have some kind of officially approved trade certificate. The important point is that skilled workers must be able to document their skills.

The regulation does not apply to apprentices and participants in labour-market measures. These groups are usually covered by special arrangements.

To § 3 The enterprise’s responsibility

The provision clarifies that the responsibility for giving employees terms of wages and employment according to this regulation, rests with the individual enterprise. The provision makes no changes in any agreements on this subject between for instance the main contractor and sub-contractors at the construction sites.

Chapt. II. Terms of wages and employment

The provisions in § 4 must be read in connection with § 12. It follows from this section that the terms of wages and employment must be considered as a whole when determining whether the regulation is applicable. The provisions on shift work do not apply when agreements on diverging working time schedules are in force, e.g. divergent rotation systems including all the workers in a company or at a construction site.

To § 4 Terms of wages for employees in construction work

To No 1: The rates correspond to the minimum wage rates in the collective agreement, but must be read in connection with § 5.

To No 2: The provisions, which apply for shift work, are copied from FOB § 6.4.

To § 5 Supplement to minimum hourly pay

The provision shall ensure that employees who are covered by this regulation, in addition to receive the minimum wage rates according to § 4 No 1, shall be evaluated as regards wage level in the same way as Norwegian workers covered by FOB.

To § 6 Working hours

The provision settles the main rule according to the collective agreements, which is 37.5 hours a week in average. The provision also contains rules on average weekly working hours for shift work. Furthermore, it clarifies that the opportunity of calculating average working hours according to the Working Environment Act Chapt. 10 also applies for employment relationships covered by this regulation. The aim is to give the enterprises the possibility to enter into the regular working schedules at the construction site or on the installation. It must be noted that the basis for calculating average working hours shall be 37.5 working hours per week.

To § 7 Supplements for overtime work

The provision means that employees are entitled to supplement for overtime work if they work more than the average weekly working hours of 37.5 hours a week or the limits for shift work according to § 6. If the opportunity to agree on divergent working schedules is used, cf. § 6 above, the right to supplements for overtime work must rely on the limits in such agreements.

§ 8 Public holidays, 1 and 17 May

Ordinarily, the employee is entitled to regular pay on public holidays, 1 and 17 May if such days otherwise would have been working days. The entitlement is limited if the employee is absent from work in immediate connection to such holidays. A certain continuity in the employment relationship is also required. Both the collective agreements and the Act relating to 1 and 17 May as public holidays contain similar provisions.

To § 9 Other supplements

The provision is meant to intercept different supplements covered by the collective agreement. What supplements and which amounts are to be determined by agreement between the employee and the employer. Supplements for dirty work, working clothes or tools are some examples, but the use of this provision must be seen in connection with common practice at the construction site or installation in question.

To § 10 Compensation for travelling and board and lodging expenses

The collective agreements have many different and very detailed provisions on compensation for these kinds of expenses. Thus, the Tariff Board has adopted a provision without any fixed sum or standard. However, it instructs the employer to enter into an agreement with the employee on the coverage of such expenses. As for travelling expenses, the employer is obliged to cover at least the employee’s actual costs. A reasonable number of journeys home shall be agreed upon.

In an opinion on the interpretation of the identical provision in the regulation on general application of wage agreements for petroleum installations onshore, the Tariff Board has stated that the expression journeys home is not limited to a residence in Norway, but to the place were the employee actually lives. If the provision should contain such a limitation, it would in practice be meaningless for foreign employees.

Before concluding agreements, it will be natural to seek guidance in the provisions in FOB Chapt. 7.

§ 11 Accommodation requirements

The provision in § 11 is restricted to necessary minimum requirements on accommodations, at the same time as the requirements on construction, equipment and maintenance must be in accordance with the Working Environment Act § 4-4 fourth paragraph. It is emphasised that the demands must correspond with common practice within the industry or at the construction site in question.

Chapt. III.   Derogation etc.

To § 12 Derogation

The provision emphasises what also ensues from the General Application Act § 3, namely that terms of wages and employment derived from this regulation, are minimum terms. If an employee falling within the scope of this regulation already is entitled to better terms, either by individual agreement, collective agreement or by other law or regulations, such terms will still apply. The provision also emphasises that it is the wages and other working conditions that after an overall evaluation has to be in accordance with the regulation. This means that one or several clauses on wages or other working conditions may differ from the regulation and still, based on a total assessment of the terms, be in conformity with the regulation.

To § 13 Terms of wages and employment in law or regulations

The provision is included for information purposes and emphasises that rules or regulations with relevance to the employment relationship deriving from other laws or regulations are applicable as well. The provision lists the most important acts, but is not exhaustive.

The Working Environment Act is not applicable for certain employees on very brief assignments, cf. § 1-7 and the accompanying regulation. This limitation also follows from the General Application Act § 3 first paragraph. This means that this regulation will not apply to posted skilled or specialized workers on particular assignments when their assignment period does not last for more than eight days. It is presumed that the extent of this exception is limited.

Chapt. IV. Entry into force etc.

To § 14 Entry into force and termination:

As a main rule regulations at the earliest can be made applicable one month after they have been published in Norsk Lovtidend, cf. the Public Administration Act § 39.

This regulation enters into force on 1 January 2006 and will as from this day on apply to all enterprises and employment relationships falling within its scope. This means that enterprises offering poorer terms on wages and employment than what follows from the regulation are obliged to offer terms in accordance with this regulation as from 1 January 2006.

The regulation is terminated one month after FOB (2004 – 2006) is replaced by a new agreement, or if The Tariff Board passes on a new resolution on general application based on the same collective agreement.