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Smaller wage increases predicted

Smaller wage increases have been predicted in Norway during the next years due to the European Union expansion to the east.

The Confederation of Norwegian Business and Industry (NHO) claims that Norwegians must accept a weaker salary increase in the future in order to save their jobs when the EU includes with ten new countries next year.

The statement was made at NHO’s conference about the European Economic Area (EEA) Thursday.

460 million Europeans will then be working in a common labor market.

Sigrun Vågeng, director at NHO, states she believes the immigration to Norway from Eastern European countries will increase and that the competition on the labor market will become tougher.

“We believe, as a number of researchers claim, that over time this will lead to smaller salary increases,” Vågeng said to TV 2 Nettavisen.

NHO claims that Norwegians have to accept that the salary increases must be much smaller during the next few years and that it is necessary if Norwegians want to keep their jobs.

Increase of moonlighting

Finn Bergersen Jr., head of NHO, claim that the expansion of the EU may bring about a larger moonlighting market in addition to competition based salaries.

“The competition will involve more than just wages,” Bergersen said. “Quality, employees’ skills, management, organization, accuracy. Many companies survive in the tough, global competition while located in Norway in spite of the high salary level.”

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