Direct agreements

When NITO has a member group in a company that is not affiliated with an employers' association, a collective agreement (collective agreement) can be entered into directly between NITO and the company. We call these agreements direct agreements.

NITO primarily recommends that union representatives work to ensure that the employer joins an employers' organisation with which NITO has an agreement at a central level. In the private sector, NITO has key agreements with the employers' organisations NHO, Virke and Finance Norway.

If the employer does not want this, a direct agreement is an alternative.

Direct agreements can be entered into in two ways:

1. The simplest is that the direct agreement is a so-called referral agreement to the collective agreement entered into between NHO and NITO.
2. A collective agreement can be entered into, which is a short form of NITO's agreement with NHO.

Referral agreement

A referral agreement is a direct agreement that refers to other collective agreements. It could read as follows: "The agreement in force at any given time between the organizations NITO and NHO is made applicable."

Template referral agreement agreement NHO-NITO

Short Form Agreement

NITO has prepared a standard for direct agreements. This standard is a short form of NITO's agreement with NHO. We have aimed to create an agreement that is easy to understand and to use. 

Template direct agreement with AFP

The main emphasis in this template is on rules for cooperation between union representatives and management and rules on how salary negotiations are to be conducted.

The standard is a proposal from our side, and the company group is free to make changes and additions as long as the content does not conflict with NITO's guidelines. Our experience is that most people establish agreements that are identical to or close to the standard, and that these agreements work well in practice. 

From 2019, contractual pensions are part of NITO's direct agreements. Read more about AFP at afp.no. 

A direct agreement is not the same as a house agreement

Some companies have so-called house agreements. These are collective agreements between the employer and a local housing association. NITO will not be a party to such an agreement. The templates for direct agreements are not applicable to house agreements. 

It is the business group that negotiates

Our experience shows that it is most appropriate for the company group to be responsible for the negotiations on the establishment of direct agreements, with NITO's secretariat as an advisor on the sidelines. Since it is the parties locally who will practice the agreement, it is also reasonable for these parties to discuss their way to the final drafting.  

The usual procedure is for the board of the company group to review NITO's standard and discuss desired changes/additions with NITO's secretariat, before the outline is presented to the employer. It may be a good idea for the agreement outline to be sent or handed over to the employer together with a proposal for a deadline for written feedback or a setting of a time for a negotiation meeting.  

The groups usually contact us to discuss the formulation of their own requirements and response to the employer's proposed changes. When negotiation meetings are held, we are usually informed of the time so that the case officer can be available by phone during the negotiations. If the employer refuses to negotiate, or an agreement cannot be reached, we will usually have a meeting with the entire company group to discuss how the situation should be handled. 

NITO is a party - Entering into and terminating direct agreements

When the company and NITO's business group have reached an agreement on an agreement text, the agreement must be sent to NITO's secretariat for approval and signing. The agreement can be sent electronically, signed by the employer. NITO will return the signed agreement to the union representative, who will send a copy to the employer. 

NITO's direct agreements are usually entered into for one year at a time. The date of entry into force (usually the time of signing of the agreement) and the time of expiry must be determined. The agreement can be terminated with a certain deadline (usually two months before the expiration date). If it is not terminated within the deadline, the agreement continues for a new period. Terminations are prepared and signed by NITO's secretariat. 

Direct Agreement Revision

An audit means that the agreement is terminated for renegotiation. 

If the company group wants changes or updates to a direct agreement, the secretariat must be contacted well in advance of the agreement's expiry.

AFP

NITO has terminated all of its direct agreements without AFP for renegotiation. This has been done due to changes in the AFP statutes, which oblige us to do this (see below). If you are aware of direct agreements to which NITO is a party and which do not have AFP, please contact NITO.

The appendix to the statutes for the AFP scheme states:

Appendix 2: The AFP list
An employers' organisation that is a party or participant in the Joint Scheme cannot have a collective agreement approved or continued on the AFP list, if the employee organisation that is a party to the collective agreement in question is bound by a direct agreement within the same industry (natural delimitation as for an industry agreement) or for the same groups of employees, without the AFP supplement in the private sector."

Termination of collective agreements differs markedly from other forms of termination, and we encourage our union representatives to pay particular attention to the following: When a collective agreement has been terminated, it does not immediately cease to apply at the end of the collective agreement period.

According to the Labour Disputes Act, the collective agreement has repercussions. This means that the collective agreement remains in full force, with the same binding effects as otherwise for the parties and for their members, even after the end of the collective agreement period.

The after-effects persist until steps have been taken by one of the parties to initiate a strike, lockout or other industrial action. In addition, the deadlines set out in the rules on mediation for the right to take industrial action must have passed. It is only then that the collective agreement can lapse.