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Dismissal and lay-off practices
The last year has been marked by financial crisis and markedly lower activity in our industry. We have indeed managed to avoid layoffs in Norway as a result of the financial crisis, however in some districts in both Sweden and Denmark we have conducted large workforce reductions. In each of the processes we ensure close cooperation with elected employee representatives, provide good information and follow-up including job-search training.
We have also had to resort to lay-offs in several of our regions in 2009. At the time of this report’s writing in 2010, the level of lay-offs had been reduced considerably, and is considered normal. The difficult economic times, however, have increased focus on discussions around lay-off rules in Norway. The rules for lay-offs in Norway have been inexpedient and far too rigid. In previous times of crisis, this has contributed to loss of key competence for the industry as a whole, and in the long run, this may have considerable socio-economic consequences. Lay-offs are not desirable, but function as an effective tool for creating stability and predictability during unstable economic conditions. More flexible lay-off rules will make it easier to retain the necessary expertise; expertise we know we will need in the years ahead.