The long-standing IA agreement in Norway, aimed at promoting inclusive workplaces, has collapsed after over 20 years.

The breakdown occurred when the Norwegian Confederation of Enterprise (NHO) rejected the latest proposal from Labor Minister Tonje Brenna, which sought to preserve the current sick pay scheme.

The negotiations, which lasted three months, failed to reach a consensus, marking a significant rift between the government and labor organizations.

The disagreement centers on the preservation of full sick pay for a year, a point of contention as NHO advocates for discussions on reducing sick leave.

This development has sparked accusations from labor unions that NHO is banking on a political shift to cut sick pay, a claim NHO denies.