Type
Internal restructuring
Country
Norway
Region
Norge;
Location of affected unit(s)
Sector
Professional Services
Professional Services And Management Consultancy
Activities Of Head Offices; Management Consultancy Activities
70.22 - Business and other management consultancy activities

120 jobs
Number of planned job losses
Job loss
Announcement Date
14 June 2019
Employment effect (start)
Foreseen end date

Description

The Norwegian company Din Utvikling providing career counselling services to the Norwegian Labour and Welfare Administration (NAV) is downsizing with 120 jobs. The downsizing is due to the company losing several tenders for NAV during the past year.

The background for the downsizing is also that the company has  been pressured to change its employment model during the past years. In the autumn of 2017, a report from the law firm Wiersholm concluded that most of the career counselors were illegally associated with the company as independent contractors when they should have been employees. Because of this report, the company decided to hire the contractors as permanent employees in May 2018. About 8 per cent of the career counselors working on specific projects remained contractors. Din Utvikling also established a collective agreement with the Union of Employees in Commerce and Offices (HK) in 2018. When it comes to the downsizing, the shop steward expresses frustration over the lack of job security in a system where one cannot plan for more than four years at a time.

Din Utvikling is part of the Frisk Utvikling Group, and has about 260 employees throughout the country.  


Sources

Citation

Eurofound (2019), Din Utvikling, Internal restructuring in Norway, factsheet number 98211, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/98211.