Frode Alfheim in LO’s fourth largest confederation, Industri Energi, made the legendary football commentator Bjørge Lillelien’s words his own when he addressed his own national meeting yesterday afternoon: – Jonas Gahr Støre, can you hear me? We’ll give your guys one hell of a beating, and we will continue to do so until we have scrapped the proposal and started a better dialogue, said Alfheim to a standing ovation from the national assembly hall. The core of the dispute is the so-called CO2 compensation scheme. This is a support scheme that aims to reduce the risk of Norwegian industrial workplaces closing down and moving to low-cost countries with weaker rules for climate emissions. Facts about the scheme The CO2 compensation scheme is intended to prevent increased power prices that the industry has to pay as a result of the EU’s quota system. The scheme has nothing to do with the industry’s own emissions, because these are subject to quotas and must be reduced in line with the quota system. In the national budget for 2023, a floor of NOK 200 was introduced in the scheme. This means that the industry was only compensated for the part of the quota price that exceeds NOK 200. In this year’s proposal for the national budget, the government proposes to raise the floor to NOK 375. According to the power-intensive industry itself, this will cost around NOK 2.4 billion a year in lost CO2 compensation. Threatening a strike – We are ready to use all the means at our disposal to stop the government’s cuts in the CO2 compensation scheme, said Alfheim in the national assembly speech. This also means that the union is prepared to go on a political strike against the government, if the budget proposal is not changed in the negotiations currently underway in the Storting between the government parties and budget partner SV. Alfheim confirms to news that a strike could be the result: – Yes, and we are not a union that takes strikes lightly, so that says a lot about how serious this is. An intensive campaign is now underway to get the parties to turn around. This includes “carpet bombing” of e-mails to parliamentary representatives, but also direct contact with the parties’ budget negotiators. – We demand that the government and the Storting accept that they are about to make holes in the living conditions of the world’s most climate-friendly industry. It is not too late to turn around – scrap the proposal, says Alfheim. Extra bill The reason for the harsh words is that the government in the national budget raises the so-called floor in the scheme from NOK 200 to NOK 375 next year. This floor, which was first introduced this year, means that the industry will not be compensated for the part of the quota price that is below NOK 375. (See fact box) – We cannot live with a shock bill of 2.7 billion for the world’s cleanest process industry one year and another 2.4 billion the next, says Alfheim. He leads a confederation which, after the merger with the Confederation for Management and Technology, has around 80,000 LO members. In this matter, the employee organization stands side by side with the employers in Norwegian Industry. – The CO2 compensation scheme is one of the most important framework conditions for Norwegian processing industry, says Alfheim, who claims that the government’s proposal will particularly affect cornerstone companies in the rural areas. Rejects cuts – I expect nothing but a clear speech from the trade union movement, it is a strength for cooperation, says climate minister Andreas Bjelland Eriksen (Ap). He is the one who answers on behalf of the government. – Is it appropriate for the government to change the decision and in that way listen to the demands from Industri Energi? – The government has submitted its budget proposal, and it is up to the Storting to adopt the national budget. Climate Minister Andreas Bjelland Eriksen believes the scheme has become so expensive that the floor had to be raised. Photo: Amanda Iversen Orlich He denies that the government has cut the scheme. – The transfer to industrial companies under this scheme will increase by NOK 1.7 billion next year, to NOK 6.4 billion, he says. – Honestly! There was a floor of NOK 200, which has now been increased to NOK 375. In two years, the government has increased the costs of the industry by 5.1 billion a year. Of course this is a cut, counters Alfheim. Climate Minister Andreas Bjelland Eriksen says the costs of the scheme have increased considerably, which forces changes. According to the minister, without changes the scheme would have cost around NOK 94 billion in the period 2021 to 2030. In comparison, the state spent a total of NOK 6.7 billion on CO2 compensation from 2013 to 2020. That is only half the truth, Alfheim retorts: – The scheme will cost more towards 2030, but the income to the state will go through the roof for precisely the same reason. Oslo Economics has calculated that the additional income to the state and municipality as a result of the quota system will be at least NOK 632 billion in the period 2021–2030.
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Lo union threatens Støre with strike – news Norway – Overview of news from various parts of the country
