Professor predicts lower Norwegian wages

MoneyNorwegian employees in several companies must be prepared for lower wages in the years ahead, predicts Lars Sørgard at the Norwegian School of Economics.  The professor of social economics thinks that a lower wage level is almost impossible to avoid when Norwegian companies establish new departments abroad, in line with what Norwegian airline has already done in countries such as Thailand, Dagsavisen reports. 

Sørgard explains that when hiring staff from Thailand, Norwegian has also put pressure on Norwegian employees. By having a department abroad, the company will place more pressure on each and every salary negotiation in the future, Sørgard says.

Research that Søgard and his colleagues have conducted shows that unions have little to say in situations like these.

"We have looked at the consequences of hundreds of mergers in the American business sector. If a company establishes a bridgehead abroad, unions know that jobs may eventually be moved to that department if they are too hard in upcoming wage negotiations," Sørgard tells Dagsavisen.

Vegard Einan, deputy leader in the union Parat confirms Sorgards findings. 

"There is no doubt that our members and representatives are subject to significant pressure because of increased internationalization. More competition across country borders also include competitive wages," he says. 

Einan also points out that this issue is not just limited to the airline industry. "This is also true for economists, accountants, people working in the financial sector, the travel industry. In reality no one is protected from this," he concludes. 


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