Sickness absence continues to increase

New figures issued in summer 2002 show that the sickness absence rate continues to rise in Norway, despite an October 2001 agreement between the social partners and government aimed at reducing the rate by 20% by 2005.

Despite the social partners' agreement with the government in 2001 to reduce the sickness absence rate (NO0110107F), recent figures from Statistics Norway (Statistisk Sentralbyrå, SSB) and the National Insurance Administration (Rikstrygdeverket) show a continued increase in sickness absence. The proportion of the total number of agreed working days lost to sickness absence increased from 6.5% in the first quarter of 2001 to 7% in the first quarter of 2002. Women between the ages of 25-39 have shown the most significant increase, at between 0.7 and 0.8 percentage points. Sickness absence is highest in the health and social sector, with an estimated absence rate of 9.4% in the first quarter of 2002, up from 9% in the first quarter of 2001.

In October 2001, the social partners and the outgoing Labour Party (Det norske Arbeiderparti, DnA) government concluded an 'agreement of intent' with a view to creating a more 'inclusive working life'. The main purpose of the agreement is to reduce the take-up of sickness benefits and the rate of sickness absence, and it sets out several measures to this end. The parties included in the accord an explicit goal of reducing the sickness absence rate by at least 20% over the period 2001-5. In addition they have committed themselves to work towards getting a much larger share of employees with 'impaired functionality' into employment, and to direct efforts towards increasing the average actual retirement age. The agreement is to be re-evaluated after the second quarter of 2003, and will be terminated if it becomes evident that the objectives will not be achieved, unless the parties agree otherwise. The centre-right coalition government of the Conservative Party (Høyre), the Christian Democratic Party (Kristelig Folkeparti, KRF) and the Liberal Party (Venstre) pledged its support for the agreement when entering office in October 2001 (NO0110108F).

It was hoped that the 2001 agreement would put to rest the controversial issue of sick pay for some time. However, on several occasions during summer 2002 high-profile politicians have cast doubts on the viability of the agreement, for example calling for changes to the present sick pay scheme, which grants employees full wage compensation from the first day of sick leave. Lars Sponheim, the leader of the Liberal Party, which is part of the coalition government, went as far as to express his regrets about giving his consent to the agreement in autumn 2001, thus preventing the possibility of changing the present sick pay scheme. The director of the National Insurance Administration, Arild Sundberg, has called on the social partners to intensify efforts to bring the absence rate down, but emphasises that, despite the continued negative tendencies, it is too early to assess the effects of the agreement. Following significant protests and uproar within the labour movement, the government pledged its continued support for the October 2001 agreement at a meeting with the social partners.