Many feared this could be the last meeting in the negotiations regarding an inclusive working life (the IA agreement). There was a significant risk that the agreement could fall apart today.
The employers do not want to agree to the request from LO and the government to protect sick pay for an additional four years.
After the meeting, Labor Minister Tonje Brenna stated that it is still possible to reach an agreement.
All eight parties to the agreement will meet again on Tuesday at 3:00 PM in Tonje Brenna’s ministry.
Facts about Inclusive Working Life (IA)
• The agreement between the state and the parties in the labor market regarding a more inclusive working life (the IA agreement) aims to reduce sickness absence and decrease dropouts from the workforce.
• It was first entered into in 2001 and has been renewed four times. The current agreement applies from 2019 to 2024. It was extended in 2022 without changes due to the pandemic’s impact on the labor market from 2020 to 2022.
• The goal of the agreement is to reduce sickness absence by 10 percent compared to 2018, as well as to decrease the dropout rate from the workforce.
• The agreement applies to all companies in the country, with certain conditions.
• In addition to the state, the parties to the agreement include NHO, LO, KS, Unio, Virke, YS, Spekter, and Akademikerne.
NTB
99 percent of the content is supposed to be fully negotiated. The only issue remaining is sick pay.
The arrangement, which was fought for by the labor movement and LO in 1978, means that we can receive full salary during illness for one year.
Satisfied with Brenna
LO Deputy Leader Steinar Krogstad pointed out after the meeting that it is important that LO has the government and a parliamentary majority backing them.
LO wants to protect sick pay for four years. Last week, the employers offered to protect sick pay for 18 months. After that, it is up to the Parliament to decide.
After the meeting, Krogstad responded to questions about whether the employers have changed their position on protecting sick pay for 18 months:
– I would say no. But we do agree to meet again tomorrow, Krogstad responds.
Facts about sick pay
Employees who have become ill or injured and cannot work may be entitled to sick pay. It is Nav that determines whether the sick leave entitles the employee to sick pay.
The employer shall pay sick pay for a period of up to 16 calendar days, also known as the employer period.
The proposal from the employer organization NHO to change sick pay is categorically rejected by LO.
Early on Monday, NRK reported that there are strong indications that Labor Minister Tonje Brenna (Ap) is working towards what LO advocates. Specifically, to protect sick pay for an additional four years.
Sacred for the labor movement
Those involved in this agreement include the government, the main organizations on the employee side (LO, Unio, YS, and Akademikerne) and the main organizations on the employer side (NHO, KS, Spekter, and Virke).
The goal of the agreement is to facilitate that as many as possible can work as much as possible, for as long as possible. And to reduce sickness absence.
The right to full pay during illness is sacred to the labor movement, but NHO firmly maintains that cuts to sick pay must also be a topic in the negotiations over the IA agreement.
The alternative is that NHO does not participate in a new IA agreement. The first one was entered into in 2001 and has since been renewed four times.
Opens for investigation
LO and Deputy Leader Steinar Krogstad have previously stated that LO could participate in an investigation of the sick pay system if the employers protect sick pay for the next four years.
YS, Unio, and Akademikerne – the three other employee organizations – are open to NHO’s desire to investigate different models for reducing sick pay.
Labor Director Nina Melsom at NHO has previously expressed that the most important thing is to use the negotiation space to find solutions.
– We will leave no stone unturned and will look at everything from working conditions and the role of businesses and sick leave to what the employee themselves can contribute, but we must also be willing to examine the sick pay arrangement, she stated.
According to Melsom, NHO wants to work knowledge-based and look at incentives for both employers and employees to contribute to more job presence and less job absence.
Could be decided in the Parliament
When the current IA agreement was signed in 2018, the aim was to reverse the trend and cut absence by 10 percent. The reality is that absence has increased by nearly 20 percent.
Norwegian employees currently have a sickness absence rate that is the highest in 15 years.
Without an IA agreement that protects the sick pay arrangement, LO cannot participate in an investigation.
In the worst-case scenario, the tripartite cooperation may collapse, and the Parliament would have to decide the structure of the sick pay arrangement without broad consensus among employee and employer organizations.
In the proposal for a new policy, Venstre proposes to cut sick pay by 20 percent after a six-month absence period.
Høyre has made it clear they do not wish to run for election next year on cutting the sick pay arrangement – despite the fact that Oslo Høyre disagrees and wants to cut the arrangement.
Most read: The drama over sickness absence has been ongoing for nearly 25 years
What are the key issues being negotiated in the Inclusive Working Life (IA) agreement concerning sick pay?
Interview Between Time.news Editor and Labor Agreement Expert
Editor: Welcome to Time.news. Today, we have the pleasure of speaking with Dr. Anna Vik, an expert on labor relations and inclusive work practices. Dr. Vik, thank you for joining us.
Dr. Vik: Thank you for having me. I’m glad to be here.
Editor: There has been significant discussion about the ongoing negotiations regarding the Inclusive Working Life (IA) agreement, particularly about sick pay. Can you explain the current situation?
Dr. Vik: Absolutely. As of now, the negotiations are quite tense. The Labor Minister, Tonje Brenna, has indicated that there’s still hope for a resolution. However, the major sticking point remains the request from LO and the government to extend sick pay protections for an additional four years—a proposal that the employers, represented by NHO, have notably resisted.
Editor: What’s at stake if the parties don’t reach an agreement?
Dr. Vik: The IA agreement, which has been in place since 2001, aims to create a more inclusive workforce by reducing sickness absence and minimizing workforce dropouts. Failure to reach an agreement could jeopardize these goals, and without a deal, employees might face a less secure sick pay scheme, which is considered a fundamental right in Norway’s labor movement.
Editor: You mentioned that 99 percent of the content of the agreement is settled, with only sick pay remaining. Can you elaborate on why this issue is so contentious?
Dr. Vik: Certainly. The right to full pay during illness is viewed as sacred by many in the labor movement, especially for those who may rely on that support. The current proposal from employers to reduce sick pay coverage from one year to just 18 months is unacceptable to LO. It’s essentially about creating a safety net for workers during tough times, and if that gets politically undermined, we could see increased financial stress for employees and a higher risk of workforce attrition.
Editor: Steinar Krogstad, the LO Deputy Leader, has voiced the importance of having government backing in these negotiations. Why is political support crucial in this context?
Dr. Vik: Political backing can significantly influence the negotiations. With the government on LO’s side, there’s greater leverage to protect sick pay provisions. Furthermore, a parliamentary majority in favor of safeguarding these rights can help expedite processes and ensure that the agreement is ratified, which not only secures the rights of employees but also promotes social stability overall.
Editor: The employers have proposed that if the sick pay protection is not extended, they may reconsider their participation in the agreement. How does this impact the negotiations?
Dr. Vik: This creates a precarious situation. The employers’ stance introduces risk and uncertainty into the negotiations. It highlights the balance of power and the extent to which both sides are willing to compromise. The employers want a seat at the table and are looking for operational flexibility, while the labor side seeks to ensure long-term protections for workers.
Editor: There’s talk of a potential investigation into the sick pay system if LO agrees to certain conditions. What could that entail?
Dr. Vik: If LO allows for an investigation, it would likely involve analyzing the effectiveness and sustainability of the current sick pay model. This could lead to exploring alternative approaches to sick leave that may balance the needs of both workers and employers, but it’s important to tread carefully. Any proposed changes must not undermine the protections already in place.
Editor: As we await the next round of negotiations, how important do you think these discussions are for the broader labor market?
Dr. Vik: These discussions are absolutely crucial. They serve as a litmus test for labor relations in Norway. The outcomes can either reinforce the principles of inclusive work or lead to a regression in workers’ rights. The future of the IA agreement will influence not only employees but also employer practices and the safety nets we have for sick leave.
Editor: Thank you, Dr. Vik. It’s apparent that these negotiations are not just about sick pay but about defining the future of work in Norway. We appreciate your insights.
Dr. Vik: Thank you for having me. It’s been a pleasure to discuss such an important issue.
