Sunday, May 22

The wage support secured jobs for 10,000 Norwegians

Nearly 10,000 Norwegians who were preparing to be laid off at the beginning of 2022 escaped with the horror. – The wage support secured thousands of jobs, says LO leader Peggy Hessen Følsvik.

LO leader Peggy Hessen Følsvik pressured Prime Minister Jonas Gahr Støtte to introduce wage support.

When the government tightened its coronation measures on December 13, it triggered a landslide of redundancy warnings. Especially in the hotel and tourism industry.

Following demands from LO, NHO and negotiations with SV, the Labor Party, the Socialist People’s Party and the Socialist People’s Party agreed on 20 December on a wage support scheme. It led to many thousands who were facing layoffs escaping with horror.

A review by LO shows that wage support has secured around 10,000 jobs.

The numbers speak for themselves according to LO: There were far fewer employees who were laid off from their jobs after the wage support scheme came into place.

– It is of course very tough for very many. But fortunately we see that the wage support scheme has secured thousands of jobs, says LO leader Peggy Hessen Følsvik.

Relax with the fear

The calculation is as follows:

  • Just before the tightening on 13 December, around 16,000 jobseekers were laid off.
  • Around 20,000 workers received redundancy notices after the government tightened. The sum indicates that there would be around 36,000 workers at the beginning of 2022.

That’s not how it went. Thousands of redundancy notices were withdrawn after the wage subsidy scheme came into place. On 4 January this year, Nav’s statistics show that there were 26,600 redundancies in Norway.

Nearly 10,000 Norwegians who were preparing to be laid off at the start of 2022, escaped with horror.
The figure includes people who were already laid off, and people who were on their way to layoffs.

Short-term measures

Wage support scheme is a short-term measure that initially applies to December and January. The scheme is aimed at companies that are hard hit by national infection control measures that limit activity.

There are primarily number restrictions, table placement requirements and bar restrictions. Hotels and restaurants, bars, theaters and cinemas were hit hard.

The purpose of the wage subsidy is to keep workers in work rather than being laid off. The support amount per. month is limited upwards to 40,000 kroner per. worker.

Unemployment exploded

The LO leader acknowledges that the wage support scheme does not affect everyone equally well. But she believes that the scheme helps to keep people in work where possible.

– The alternative would have been that far more people had been laid off or lost their jobs, says Følsvik.

She recalls how the redundancies exploded when Norway closed down for the first time in March 2020.

– We all remember the dramatic situation last time. 400,000 Norwegians were either unemployed or laid off. This time we are now able to resist mass redundancies, and we have managed to stop many thousands of redundancy notices, she says.

The LO leader still believes that a lot of work remains before the ghost of unemployment is scared away.

– Now there are two things that apply: We must continue to vaccinate people at a high pace. And we must continue to do what we can to keep people in work, says Følsvik.

Leave a Reply

Your email address will not be published.