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UNIONS IN DNV GL SECURING JOBS IN 2015 BY SETTLING FOR 2.6% SALARY GROWTH The salary negotiation settlement is important in order to secure a correct salary increase for all DNV GL employees in 2015. NINA IVARSEN, ANGELA MILLER, GRETHE VALDØ VEFF, Tekna and NITO negotiated together this year. This enabled us to use all statistic data available early in the year. Negotiations have now been concluded and the salary has been distributed. This article shows the unions’ calculations, figures and statistics, which you can use to benchmark your salary in line with your colleagues’ salaries and your expectations. You can also read the unions’ comments to the negotiations in this article.
DNV GL’s policy DNV GL distributes the negotiated salary increase, but the unions argue strongly that this must be experienced as fair for all parties. Unions take care of the interests of all members, and believe we are all part of our knowledge-based society and the services we provide for our customers. We have different categories and a differentiated basis, but your salary increase should be reasonable compared to the increases allocated to your peers. Salary developments in DNV GL are to be based on four known criteria, negotiated in central agreements between the Confederation of Norwegian Enterprise (NHO) and the main unions YS/Parat (VEFF), Tekna and NITO. The four criteria are: • Economy • Productivity • Outlook • Competitive ability
formula. This is based on a norm used by DNV GL during the past few years – refer to the matrix below. DNV GL is a knowledge-based company whose main focus is on engineering assignments relating to oil, shipping and energy. If you are in the first ten years of your career and have a master’s degree or the equivalent, you will receive the largest share of the ”salary pot”. The older you are, the smaller your salary growth percentage will be. This year’s distribution framework is 2.0%. In addition to the framework, 0.6% was distributed for promotions and appointments as of 1 April 2015. The
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Tekna’s comments Many of our members are concerned about how their own individual compensation compares to Tekna statistics. The DNV GL Tekna group has not come significantly closer to the Tekna average after the salary negotiations these past few years, and we will follow this trend carefully when Tekna statistics for 2015 are made available to us.
Adjustment Salary adjustment
2.0% Total adjustment
Salary adjustment and promotion*
2.6%
Distribution of promotions – 0.6% Promoted to grade
Verification report for the pay settlement 2015 In principle it is DNV GL that allocates salary on the individual level. DNV GL practises individual remuneration, but fundamentally complies with a distribution
percentage rate per category is average for all employees in that category and can only be used as a guide. Note that the trade unions only negotiate a percentage framework; unions do not allocate the percentages.
Grand total
No. of employees 4
2
6
10
7
83
8
83
9
74
10
65
11
58
12
38
13
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Civil engineer – DNV GL in Norway vs Hewitt 1,100,000
2,3% 1,000,000 900,000
0,7%
800,000
0,4%
700,000 600,000 2.0%
500,000
1,2%
400,000 2014
2011
2008
2005
2002
1999
1993
1990
1987
1984
1981
1978
1975
1972
DNV GL average salary + SUS Hewitt average salary
During this year’s negotiations, we feel we got the best settlement possible and at the same time helped secure a sustainable business development for 2015, as we saw the forecast was unpredictable. Going into Q2, we see that our business is not as robust as earlier years, and holding a moderate line was important.
NITO’s comments It is in general a great uncertainty about the developments in the labour market in Norway for 2015. Factors in the macro economy – such as oil prices, investment levels, exchange rates and other international matters – give concern, and an increase in the unemployment level is expected. The achieved salary increase is a moderate settlement, and would give us the possibility to stay strong in the increasingly competitive market. We hope this will make it possible for DNV GL to avoid the massive lay-offs we see especially in the O&G market. NITO in DNV GL is satisfied with the cooperation with the other unions during the salary negotiations, and we believe that we together have more impact when we agree on the arguments to use. One of NITO’s goals in salary negotiations is that we should all have a fair increase in
salary compared with the increase in cost (KPI). We also strive for a more equal pay for equal work, even if the basic education may be different.
VEFF’s comments As we all know, the forecast for 2015 is unpredictable, so this year’s negotiation was all about securing a sustainable business and holding a moderate line. VEFF therefore believes that the negotiated frame of 2.6% is fairly good. VEFF experienced that the cooperation with Tekna and NITO was valuable. VEFF wants to safeguard diversity among the employees and ensure that we all are paid according to effort and knowledge, gained by academic education or by experience. VEFF’s slogan is “equal payment for equal effort and equal payment for equal knowledge, regardless of gender and age”. We have reviewed the distribution of the negotiated frame and concludes that our slogan is fulfilled.
AON Hewitt companies Aibel Aker Solutions DNV GL Elopak Esso ExxonMobil E & P Norway FMC Kongsberg Subsea Gassco GE Healthcare GE Oil & Gas INEOS ChlorVinyls Norway Kongsberg Maritime Kværner Norconsult Norsk Hydro Roxar
AON Hewitt’s civil engineers These statistics are based on salary data reported by the companies themselves as of November 2014. Statistics population: 5,500 graduate engineers (not including DNV GL).
DNV GL’s Norwegian civil engineers
2%
DNV GL’s salary statistics are based on data from Partner (salary with SUS included), including only permanent employees in category A (Norway) in salary groups 1–13. Statistics population: 1,407 employees.
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Comparison of salaries for DNV GL Tekna and Tekna private in 2014 Tekna smoothed
DNV GL Tekna with bonus and SUS
1,200,000 1,100,000 1,000,000
Salary
900,000 800,000 700,000 600,000 500,000
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
400,000
Graduation year The graph shows a comparison of arithmetic mean for DNV GL Tekna and Tekna private for different graduation years. The FIGURES for DNV GL Tekna include both SUS and bonus. On average, DNV GL Tekna is at a level 97.19% of Tekna arithmetic mean.
Historic salary gap to Tekna 101% 100% 99% 98% 97% 96% 95% 94% 93% 92% 91%
2007
2008
2009
2010
2011
2012
2013
2014
The graph shows the historic difference between arithmetic mean for DNV Tekna and Tekna. Figures pre-2011 are based on VEFF’s historical figures for category A. The figures include bonus and SUS.
VEFF VEFF+NITO NITO
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NITO-B
0.96
0.97
0.99
NITO-D
1.28
1.28
1.27
NITO
1.00
1.01
1.03
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Average base salaries
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