Type
Internal restructuring
Country
Norway
Region
Norge; Oslo og Akershus;
Location of affected unit(s)
Sector
Administrative Services
Employment Activities
Employment Activities
78.20 - Temporary employment agency activities

120 jobs
Number of planned job losses
Job loss
Announcement Date
16 December 2022
Employment effect (start)
24 December 2022
Foreseen end date
31 December 2022

Description

The Norwegian temporary work agency CBA Formidling will cut 120 jobs, mainly in the construction secor, to be implemented in December 2022. The reason for the downsizing is the new regulations for hiring labor in Norway, acccording to the CEO. With a few exceptions, the provision that companies can hire labor from temporary work agencies for temporary needs disappears. In the building and construction industry in and around Oslo, the Parliament has banned the use of temporary work agencies altogether. The intention of the new regulation is that those working in temporary work agencies will rather be employed directly by the companies. 

Since 2019, there has been a requirement that workers in temporary work agencies are permanently employed. Almost all of the employees in CBA Formidling are foreign workers from the EEA area, typically Eastern Europe. The main trade union confederation LO and the biggest private sector union organising in construction, The United Federation of Trade Unions (Fellesforbundet), have celebrated the changes in the regulations.   

CBA Fagformidling was established in 2003 and was one of the first temporary work agencies in Norway. 


Sources

Citation

Eurofound (2022), CBA Fagformidling, Internal restructuring in Norway, factsheet number 108099, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/108099.