Itinera faces exclusion from Norwegian projects following court ruling in Oslo
Tuesday 1st October 2024 on 14:04 in
Denmark
The Italian construction giant Itinera has failed to adequately ensure proper wage and working conditions for its employees on major projects in Denmark, according to a ruling issued by a court in Oslo. This decision supports the Norwegian road authority’s stance that Itinera can be excluded from bidding on a billion-dollar project in Norway.
Itinera is currently involved in the construction of the Storstrøm Bridge, the New OUH hospital in Odense, and the university hospital in Køge. However, the Norwegian authorities have decided against allowing the Italian firm to undertake their infrastructure projects due to issues stemming from its previous Danish contracts, where it was determined that the company did not do enough to guarantee fair pay for all its workers as per collective agreements.
Frustrated by the exclusion, Itinera challenged the decision in court in mid-September. The court has now upheld the Norwegian authority’s exclusion, stating that it is justified and ordering Itinera to pay nearly 1.3 million kroner in legal costs.
The court highlighted repeated and serious violations of labor regulations, noting that false timesheets were a consistent problem and that proper wages were not paid. While some of the issues date back in time, a recent case from April 2024 indicates that Itinera continues to struggle with subcontractors’ adherence to basic labor standards.
The Norwegian road authority emphasized four key cases relating to poor pay and working conditions on the projects mentioned. Itinera contended that the responsibility for underpayment rests with subcontractors. The company has not yet provided a public response regarding the ruling or if it intends to appeal.