Norway's labor unions and employers are at odds over the country's generous sick leave policy, which is seen by some as the best in the world but also blamed for high absenteeism rates.

The Labour Party-led government is siding with the unions, led by the Norwegian Confederation of Trade Unions (LO), in preserving current sick leave benefits for at least four more years. This decision comes despite calls from employers' organizations, including the Confederation of Norwegian Enterprise (NHO), to reform the system to reduce absenteeism.

NHO had argued that amending sick leave benefits would help curb absenteeism, which reached 7.2 percent in the third quarter of last year. 1  However, LO maintains that punishing people financially for being sick is not the answer.

The breakdown in negotiations between NHO and LO has strained the traditionally cooperative relationship between unions, employers, and the government in Norway. Labour Minister Tonje Brenna has called both sides back to the bargaining table, but it appears likely that sick leave benefits will remain unchanged for now.

The Norwegian government will now have to focus on other measures to address absenteeism, while employers and taxpayers continue to shoulder the high costs of the current sick leave system.