Maintaining the leading sector wage bargaining model

The Norwegian wage formation is based on a so-called front-runner model with the industry as the leading sector. The model has contributed to low unemployment, high-value creation, and small wage differences. For the model to function, several conditions must be present. Firstly, the degree of organization and coverage of collective agreements must be high enough to coordinate the majority of wage formation through this model effectively. Furthermore, the model requires that the parties in the labour market follow it loyally. The main labour organizations have faithfully supported the model. At the same time, there are various tensions within this model that lead some parties to believe that the model does not serve them well. In this project, we will describe the challenges with the current wage formation model in more detail and explore alternative ways to adjust the model to prevent it from breaking down.