Employment relations in the grey or even black zone do also exist in Longyearbyen. Recently, the regional employment protection agency made controls in Longyearbyen and, in a number of cases, found evidence for black labour. Employees concerned are mainly of non-Norwegian origin, and often employed in house cleaning. Employees were found to have worked more hours than they were (officially) getting paid for, and wages were often well below usual levels. According to Svalbardposten, 50 kroner (currently approximately 4.25 Euro9 were paid per hour, while Norwegian standard wages would be at least 205 kroner (17.42 Euro).
The employment protection agency can only rise attention and bring cases to the attention of relevant authorities, such as the tax authority. Another difficulty is that some relevant Norwegian legislation is not in force in Svalbard. Due to the Spitsbergen Treaty system, not all Norwegian laws are automatically in force in Svalbard, but they have to be brought into force explicitly by Norwegian legislators.
There are, of course, house cleaning businesses in Longyearbyen that take care well of their employees and respect both legislation and reasonable ethical standards. Some of these companies are now raising criticism against their grey-zone competitors and against the lack of enthusiasm on behalf of the Norwegian government. Gustav Halsvik, director of ISS, is quoted saying that he thinks of the lack of action of Norwegian authorities as public racism, considering that Norwegian employees are hardly concerned.
Black labourn exists in Longyearbyen not only within house cleaning, but for example also in the catering trade. The cook of this delicious meal was most likely not getting paid according to standard wages!
Similar problems are known to exist in Longyearbyen also in industries such as transportation, building and restaurants.