Published: 09 December 2024 at 20:10Last updated: 09 December 2024 at 20:10
At LO breaks cooperation with NHO and the entire employer side, it shakes the very foundation of Norwegian working life and societal development, believes senior researcher Lisbeth Øyum at Sintef.She is critical of the heated conflict that has arisen.
Øyum specializes in the Norwegian working life model and reminds us that NHO and LO are the two bastions in that context.
– They are the two who lead during negotiation periods. The fact that they are not cooperating as usual means that the working life loses role models for secure working conditions, Øyum tells Dagsavisen.
On Monday, there was a breakdown in negotiations for a new IA agreement in the tripartite cooperation between NHO (employers), LO (employees), and the state. At the same time, LO announced that they are temporarily breaking cooperation with the counterpart.
Agreement on a new IA agreement is blocked only by the large contentious area: sick pay. the current IA agreement has protected sick pay for 23 years. LO wants to maintain sick pay for four more years, but NHO will not agree to that. They have proposed two years.
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IA Agreement
- The agreement between the state and the parties in working life on a more inclusive working life (IA agreement) aims to reduce sickness absence and decrease dropouts from the workforce.
- It was frist entered into in 2001 and has been renewed four times. The current agreement is valid 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 dropouts from the workforce.
- The agreement applies to all companies in the country, with certain conditions.
- In addition to the state, NHO, LO, KS, Unio, Virke, YS, Spekter, and Academics are parties to the agreement.
LO’s justification for breaking the cooperation is that they feel sidelined both during and after the negotiations and that they are subjected to an unfair process by NHO.
LO leader Peggy Hessen Følsvik calls NHO’s behavior a “gross breach of trust” according to Frifagbevegelse.
Now, more than just a new IA agreement might potentially be at stake, fears senior researcher Lisbeth Øyum, who explains to us what the vital tripartite cooperation is and what significance it has:
– It means that the employer side and the employee side in Norwegian working life agree on a number of common rules and laws for working life, wich they have negotiated. The third party, the state, acts as a guarantor that the parties can manage that cooperation in coming to agreements and executing them.The state collaborates with both parties to implement, such as, pension reform and the IA agreement.
– The IA agreement is a good example of how the tripartite cooperation is supposed to function. in broad terms, we are talking about social development that springs from this important cooperation between the three parties. Historically, there has not only been a focus on them reaching agreements on everything, but that it is beneficial for all three to have a productive and good society, Øyum points out.
She explains that the essential goal for the three parties and all of us is to ensure that people have jobs, so that the country has money circulating and that we can fund the welfare state.
– It is indeed societal building, the researcher emphasizes, and reminds us of the long history and tradition of cooperation and conflict resolution in Norwegian working life.
– The tripartite cooperation has roots all the way back to when Norway began rebuilding the country after World War II. The cooperation has encountered many significant conflicts, but also systems and routines to regulate the conflicts. We know how to handle conflict in Norway.The guarantor, the state, has had the means to intervene when there is a danger to life and health, such as through compulsory wage mediation to end strikes. This is institutionalized but rests practically on the will of the politicians and the parties.
It is this will that now hangs in the balance, as Øyum perceives the situation.
– The Constitution of Norwegian Working Life
The researcher believes there is reason to be concerned about the step LO has now taken but warns against placing all the blame on them.
– It can possibly have significant consequences. I find it dramatic. But I think it is important to understand that the step LO has taken is not made out of thin air. Such steps are a response to both a principled important issue for LO and perhaps also an expression that the dialogue over time has not been as good as it has traditionally been, Øyum explains, attempting to understand LO’s step in a past perspective:
– In 2035, it will be 100 years since LO and NHO reached agreement on the first main agreement, which is considered the constitution of Norwegian working life, so the cooperation has a long history. Perhaps LO does not recognize the counterpart now? it is indeed conceivable if the counterpart’s positions are to hard on workers’ welfare arrangements and security as employees.
– No,the two parties have such a long history and have gone through ups and downs together,so I cannot believe that the cooperation can break forever,Øyum replies.
but she has noticed the LO leader’s use of the term “gross breach of trust.”
– These are strong words.To rebuild trust,it takes more experiences that it was worth taking the risk – for trust is to take risks – so that one experiences that the other party can be relied upon,she explains.
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NHO Director: – ready for Cooperation
LO explains the breakdown in cooperation as follows:
“Breaking the collaboration with the employer side means, among other things, that LO does not wish to conduct bilateral cooperation with all employer organizations. This includes, among other things, cooperation such as the IA agreement’s sector program, the energy collaboration in the power lift, and so on.”
At the same time, the LO leader has stated that the tripartite cooperation is important for LO and that they continue to respond when the government invites them to dialogue. LO will also conduct wage negotiations, labor law and contract dispute meetings, and provide assistance to members.
– We will take our obligation for our members’ rights. We also still adhere to the main agreement, has the LO leader stated according to Frifagbevegelse.
NHO director Ole Erik Almlid is clear with Dagsavisen that they wish to continue cooperation with LO.
– We must endure to discuss. There is a tremendous amount we could do together to reduce sickness absence, even if we do not agree on sick pay.on many points,we agree,but now the agreement is not signed. LO should have set sick pay aside and negotiated the rest. We were willing to extend the sick pay protections for two years rather of the four years LO demands. There was no willingness from LO for that.
– That is something LO must answer for. Nine out of ten of our member companies respond that the collaboration between employer and employee is good at their place, and that they have a solid and long tradition for it.
– It is very unlikely, since the state is also a party in the tripartite cooperation. We have many agreements, and they cannot just be nullified. It has been the cornerstone for societal development for many decades, Almlid responds.
Senior researcher Øyum finds it arduous to predict what consequences such a breakdown in cooperation between the two bastions of working life might have for the employees. But she fears it could have ripple effects.
– I have thought that the disagreement between LO and NHO could seep into certain workplaces and sectors and remove the basis for cooperation on measures to reduce sickness absence. It could echo to workplaces, where there could be somewhat more rigid fronts. That is what I fear. But I hope this does not propagate, she emphasizes.
– It is difficult to have a clear opinion on that, but from LO’s perspective, two years is quite a short time. If they had been given four years before a new round of assessments and negotiations, I think it would have led to more workplaces and sectors realizing they needed to change how they worked to reduce sickness absence. Two years might be a bit too short a time for them to come
– So I also suspect that NHO thinks they want to maintain pressure on reducing sickness absence and that four years thus feels a bit too long for them, the researcher adds.
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What are the historical foundations of cooperation between labor unions and employer organizations in Norway?
Class=”default__StyledText-sc-1sijj6x-0 cKwqwH body-paragraph “>The LO’s decision to break collaboration signals a significant shift in the tripartite cooperation that has historically characterized Norwegian labor relations. This move indicates a growing rift between the labor union and employer organizations, specifically the NHO. The implications of this breakdown could extend beyond the immediate agreements, possibly affecting broader labor market dynamics.
In the midst of the pandemic, the labor market faced unprecedented changes, prompting a need for cooperative agreements like the IA (Inclusive Workplace) agreement aimed at reducing sickness absence and maintaining workforce participation. However, the frustrations expressed by LO regarding their treatment during negotiations highlight deeper issues of trust and interaction between the parties involved.
Senior researcher Lisbeth Øyum emphasizes the importance of this cooperation, which has roots extending back to post-World War II efforts to rebuild the nation. The relationship between employers,employees,and the state,which serves as a guarantor of agreements,is crucial for social stability and economic welfare. The breakdown of trust, as pointed out by Øyum, brings into question whether the long-standing cooperative framework can withstand current tensions.
the changes in the labor market due to the pandemic, combined with LO’s decision to halt cooperation with NHO, present significant challenges. It raises concerns about the future of collaborative efforts essential for ensuring job security and a functioning welfare state in Norway. As the situation evolves, the ability of both sides to rebuild trust may prove vital for restoring effective dialog and cooperation in the labor market.