Send this page to someone

The Nordic Model combines competitiveness and growth with highly developed public services on a national level. But the model is also found on company level and at the workplaces.

The Reitan Group is one of Norway’s largest franchisors. In addition to their own Rema 1000 retail chain, the group has been running 7-Eleven in the Nordic countries since 2001, as well as the Norwegian chain of convenience stores Narvesen and the cosmetics chains Estetique and Vita.

All four businesses were turned into franchises, and De Facto has studied the consequences for employees. They all suffered less job security as a result of no longer working for a large corporation, rather than a single shop. Other changes included:

- Many of the shops turned franchises lost their collective labour agreement

- Pension rights worsened

- Loss of collective insurance policies

According to De Facto it became impossible to pay the wages set out in the collective labour agreements and at the same time stay within the budget laid down by the franchise deal offered by the Reitan Group.

“Even with a dramatic lowering of wages and personal input far beyond the call of duty from the franchisee it is hard to make money from running a 7-Eleven”, the study states.

The Reitan Group has been taken to court by several ex-franchisees, and have changed their agreements somewhat after a lot of publicity. In one noticeable ruling one franchisee won the right to benefit directly from the discounts the Reitan Group had negotiated for 7-Eleven. Both parties have appealed the ruling.