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Managerial Salary Increase Sparks Controversy amid Criticism

This is happening at the same time as managerial salaries and bonuses are strongly criticised.

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KS director Lasse Hansen will have his salary increased by much more than the municipal employees in 2023.

He received a pay rise of a whopping 6.25 per cent, or NOK 120,000.

It is well over the frame in the municipal settlement, where KS is the counterpart to the trade union movement in the annual wage settlements, which apply to 450,000 employees.

– We have mostly followed the frontline framework, but we have to be competitive. Our employees are in demand in Municipality-Norway, writes KS chairman Gunn Marit Helgesen (H), in an SMS to FriFagbevegelse.

Lasse Hansen does not want to comment on his own salary.

Around two million

An average municipal worker will have his salary increased by 5.4 per cent in 2023.

That was what KS and LO, YS, Unio and the Academics agreed on in this year’s salary settlement.

It is above the limit in the private business world, 5.2 per cent.

The KS director nevertheless received a salary increase of 6.25 per cent, which is 0.85 percentage points higher than the municipal employees.

The salary increased from NOK 1,920,000 to NOK 2,040,000. An increase of NOK 120,000.

In comparison, the same kroner supplement would have given a salary increase of more than 20 per cent for an average social worker or vocational teacher.

The differences are increasing: Those who earn the least have the worst wage growth

Criticism of executive salaries

This is happening in a collective bargaining year where management salaries and bonuses have been strongly criticised.

Even NHO chief Ole Erik Almlid acknowledged after the central salary settlement that the salary increase for managers in the private business world soured the atmosphere around the negotiating table.

– It is a fact that high management salaries and bonuses made the negotiations more difficult this time, said Almlid.

Salary interview

– KS is not the salary leader, but due to a couple of years behind schedule, we adjusted to slightly below the salary range in KS and the price increase. It is important for us to retain skilled managers, and to be approximately in line with municipal directors in the largest cities, writes chairman Gunn Marit Helgesen.

– We must be competitive. Our employees are in demand in Kommune-Norge, writes KS chairman Gunn Marit Helgesen.

Johnny Syversen / KS

The chairman explains that the Labor Committee had previously approved a framework for the salary negotiations in KS. KS director Lasse Hansen then had a regular salary discussion with his manager, that is Helgesen himself.

In the end, it was the chairman of the board who decided the new salary.

The price increase Helgesen refers to is the latest Statistics Norway figure at the time.

The chairman also adds that Hansen got under the front subject framework in 2022.

Helgesen is also group leader for the Conservative Party in Vestfold and Telemark County Council.

2023-07-16 10:01:42


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