Impact of the More Inclusive Working Life Agreement

In Norway, the tripartite Agreement on a More Inclusive Working Life (IA Agreement) has been extended three times since it was signed in 2001. Two reports by the National Institute of Occupational Health show that, for 1994–2005, the duration of sick leave was on average shorter for employees in an IA company than for those in companies without an agreement. The level of disability benefits was also significantly lower for IA employees than for non-IA employees.

Background

The tripartite Agreement on a More Inclusive Working Life (IA Agreement) was first signed by the Norwegian government and the social partners in 2001. With the assistance of companies and an emphasis on including older people and those with chronic illnesses in the labour market, the focus of the agreement has been to:

• reduce the incidence of sick leave and the payment of disability benefits;

• increase the retirement age;

• ensure the recruitment of those with disabilities and other vulnerable groups.

After the first extension of the agreement in 2006, a new letter of intent (39Kb PDF) on a more inclusive working life was produced for the period 1 March 2010 to 31 December 2013. This new agreement replaces the first letters of intent and the declaration by the parties on continuation of the original agreement.

About the studies

Two reports published by the National Institute of Occupational Health (STAMI) highlight the factors that affected the incidence of sick leave and disability benefits before and after the introduction of the IA Agreement. The reports looked at the importance of individual requirements, working environment and health (Foss and Skyberg, 2006, 2008).

The studies were based on available public records:

• FD-Trygd – a statistical database compiled by Statistics Norway on social security, social assistance and other demographic data linked to social policy;

• Bedrifts og Foretaksregisteret – a register of businesses and enterprises

• IA Register held by the former National Insurance Administration (Rikstrygdeverkets);

• data from the Oslo Health Study (HUBRO).

Sick leave and disability benefit data for 1994–2004 and 2001–2005 were analysed by dividing people into an ‘IA group’ and a ‘non-IA group’. The IA group consisted of those who had been employed in an IA company after the agreement was signed. As well as differences between the two groups, the relationships between sick leave due to mental disorders, musculoskeletal disorders, socio-economic factors and working conditions were also studied.

Key findings

Number and length of sickness absences

The total number of new sick leave cases increased between 1994 and 2005 for people in both IA companies and in companies without an agreement. However, the period of sick leave was on average shorter for IA employees than for non-IA employees. The average length of absence of non-IA employees showed a relatively strong increase until 2002, but the length of absence of IA employees was relatively stable.

Disability benefits

Levels of disability benefits were significantly higher for non-IA employees than for IA employees during the period examined by the studies. Notwithstanding the variation in the results regarding different age groups, the impression is that people in IA companies receive relatively few disability benefits compared with those employed by non-IA companies. This overall pattern indicates the creation of an inclusive work environment in IA companies.

Mental illness

Sick leave due to mental disorders was found to be more strongly associated with factors in the work environment than with socio-economic factors such as education and income. People who had taken sick leave due to a mental illness reported a poorer psychosocial working environment than those who had not been sick.

Education was found to have a weak direct effect on the risk of sick leave due to mental illness, but seemed to impact indirectly through a poor psychosocial working environment and working conditions as people with low educational attainment and income more frequently reported such issues.

Musculoskeletal disorders

A strong correlation was also found between education and income and sick leave due to musculoskeletal disorders. Those who had jobs involving heavy physical work, shift work or night work were significantly more often on sick leave due to musculoskeletal disorders. This group also came out worst when adjusted for education and income.

Job uncertainty (that is, fear of losing work) had a clear impact for both diagnostic groups, but had the greatest effect on those with low education and income.

Sick leave due to mental disorders and musculoskeletal disorders was found to be highest among those workers who reported poor supervision.

Commentary

The results from the two STAMI studies showed that, although the number of cases of sick leave among IA employees increased between 1994 and 2005, the number of sick leave days and average length per absence fell. Over the same period, the number of disability pensions remained low for employees associated with the IA companies. The overall pattern suggests that these companies had succeeded in creating an inclusive work environment.

References

Foss, L. and Skyberg, K. (2006), Utvikling i sykefravær og andre helsedata før og etter avtalen om Inkluderende arbeidsliv (IA). Hvordan samspiller individuelle faktorer med forhold ved bedriften? (352Kb PDF), STAMI-rapport, 2006, Vol. 7, No. 1.

Foss, L. and Skyberg, K. (2008), Sykefravær i ulike bransjer: Utvikling i sykefravær og uførhet i lys av individuelle faktorer og forhold ved arbeidsplassen (1.59Mb PDF), STAMI-rapport, 2008, Vol. 9, No. 18.

Bjørn Tore Langeland, National Institute of Occupational Health