TBU at 50: Wage formation – the Norwegian model’s unique attribute

The Technical Calculation Committee normally publishes two reports annually, one Norwegian public report (NOU) ahead of the wage negotiations. The report details wage and income developments, price developments with a prognosis for the price development during that year and the development of competitiveness. The report also sums up developments in the international economy and the Norwegian economy. Another report sums up developments after the wage negotiations.

TBU, The Norwegian Technical Calculation Committee for Wage Settlements, was established in 1967, headed by Odd Aukrust, a social economist and head of Statistics Norway’s (SSB) research department. During his reign the Committee was known as the Aukrust Committee. The frontfagsmodell was established as early as in 1966, and the terms protected and competitive industries were launched.

When Aukrust retired in 1984 after 18 years at the helm, Arne Øien, Director General at SSB, took over. He led the Committee for less than a year before becoming Minister of Oil and Energy in Gro Harlem Brundtland’s second government. SSB’s Director General Svein Longva then led the Committee for eight years before becoming State Conciliator (Riksmeklingsmann). The Committee was led by SSB’s Director General Øystein Olsen from 2005, until he got the job as the Governor of the Central Bank of Norway in 2011.

Today’s leader, previously Director General and now director of the research department at SSB, Ådne Cappelen, took over in 2011. There have been five leaders in the Committee’s 50 years of existence. All have been social economists from the University of Oslo and Director Generals at SSB.

The same parties who helped prepare the ground for the Calculation Committee’s work were speaking during the 50th anniversary: Statistics Norway, the social partners, social economic expertise and the authorities. The TBU’s work has been influenced by the social economic milieu around Statistics Norway, the Department of Economics (NTNU), the University of Oslo and the Ministry of Finance.

The social partners are also represented with their social economy expertise. The Ministry of Labour and Social Affairs appoint the Committee members and houses the administration. Members are appointed for three years.

According to professor Steinar Holden, the Committee’s debates are rich in professional argumentation and trust between people and organisations. This also provides an important basis for other committees.