5 Responses

  1. Zz
    Zz 12 November 2012 at 11:14 am |

    How can Norwegian be a “low cost” option? Do you have any idea what the salary costs are in Norway.

  2. Delta Points
    Delta Points 12 November 2012 at 12:31 pm |

    @Zz – not to mention the tax. Keep in mind that not only do Scandinavian works pay a HUGE tax, but the company’s pay a HUEG tax per worker on TOP of that as well. I love Scandinavia and visit often but would never run a business from there!

  3. eds183
    eds183 12 November 2012 at 7:05 pm |

    @delta points

    I have direct reports in norway, UK, France, and the US. The real bottom line difference in cost for the Norse worker to my company is about 8% more fully loaded with benefits. The Norse worker pays a high VAT, but pays very little property tax, pays into maternity/paternity leave (which is very generous), pays into a vacation fund (all workers are given a min of 5 Max of 6 weeks/year, and a state pension. My back of the envelope math comes to about 12% more than the equivilent US worker. But they get some very good benefits for that extra $$.

  4. Stephan
    Stephan 13 November 2012 at 2:42 am |

    All those “benefits” and high salaries are no longer affordable in a competitive environment. SAS will not survive without a government bailout and it won’t be the last one to run into this scenario either.

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