New Government leaves the present sick pay scheme untouched

A new Government of the centre took power in Norway on 17 October 1997. According to the statement which outlines the new administration's position, it is clear that current policy with regard to sick pay and other labour issues will not be dismantled, but will to a large extent be continued along previous lines.

On Friday 17 October, the Norwegian Labour Party Government stepped down and made room for a new coalition Government comprising the three centre parties - the Christian Democratic (Kristelig Folkeparti) Centre (Senterpartiet) and Liberal (Venstre) parties The new Government is a minority administration which aims at cooperating with parties both to the right and to the left of centre on a case-by-case basis. In their political programmes and in earlier political debates, the three parties had diverging points of view on several labour-related issues (NO9709125N). This is the case with regard to amending the sick pay scheme so as to make it less generous, and introducing a greater degree of deregulation so that the rules relating to temporary employment and contracting out labour become less restrictive. The central question has been whether the new Government would seek support from the Labour Party and thereby continue current policies, or whether it would seek support from the right and thereby introduce one or more changes in the present system.

The joint statement, which sums up the joint position which the three government parties have agreed upon, indicates that the new Government will only introduce minor changes to labour legislation:

• The sick pay scheme will be maintained. It is the sick pay scheme which has received greatest attention. At present, the scheme provides full pay from the first day of absence due to sickness. Two of the three government parties (the Liberals and Christian Democrats) would like to introduce one or more waiting days or would like to reduce the financial compensation. Nonetheless, the new Government's position is to retain the present scheme.

• Private job placement, contracted out of labour and temporary employment. Norwegian law is restrictive with regard to private job placement, the contracting out of labour and temporary employment. There are different points of view amongst the three government parties with regard to liberalising these regulations. The new Government will "look at the structure for leasing labour", but has not indicated whether or not it intends to change the present legislation. The joint statement does not contain any proposals to amend the clause in the Worker Protection and Working Environment Act which regulates temporary employment, but the new Government wishes to draw up guidelines as to how the clause is to be understood (NO9708118F).

• No significant amendments to the Labour Dispute Act. In the joint statement, the three government parties also touched upon the Labour Law Commission's recommendation to amend the Norwegian Labour Dispute Act. The new Government would like to amend the Act so as to restrict the right of independent organisations to bargain and the right to strike (NO9706112F).