This article analyses the reasons for the continuation of the Norwegian
consensual model of capitalism with its strong focus on collective
bargaining and a universal public sector. Two main causes are
identified. First, capital in Norway is characterized by the
predominance of small and medium-sized companies and, as a result, is
comparatively weak. Second, the agency of labour has been decisive and
trade unions are still able to balance the structural power of Norwegian
employers. Prior to the 2005 elections, trade unions adopted a more
independent position from the Labour Party, and the Campaign for the
Welfare State broadened the social basis for the maintenance of the
public sector by bringing together trade unions and social movements. As
a result, the Labour Party moved towards the left and continued to
support traditional social democratic achievements such as the universal
public sector and a strong role for trade unions in economic and social
policy making.
