Employment, Social Affairs & Inclusion

Database of labour market practices

This database gathers practices in the field of employment submitted by European countries for the purposes of mutual learning. These practices have proven to be successful in the country concerned, according to its national administration. The European Commission does not have a position on the policies or measures mentioned in the database.

Norway The Memorandum of understanding on a more Inclusive Workplace (IW-agreement), Objective 3 - Raise the real (average) retirement age
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Original Title: Intensjonsavtalen om et mer inkluderende arbeidsliv (IA) (IA-Avtalen) - Mål 3
Country: Norway
Responsible body: Ministry of Labour
Name(s) of other organisations involved (partners / sub-contractors): Confederation of Norwegian Enterprise (NHO); Enterprise Federation of Norway (HSH); Norwegian Association of Publicly Owned Companies (NAVO); Norwegian Association of Local and Regional Authorities (KS); Confederation of Vocational Unions (YS); Education Union (UHO); Inclusive Workplace Support Centres set up by the Norwegian Labour and Welfare Administration (NAV); Centre for Senior Policy (CSP); 'Vox', the Norwegian Agency for Lifelong Learning
Start Year of implementation: 2001
End Year of implementation: Ongoing
EU policy relevance:

An increasingly common area of concern in Europe is the demographic shift towards an ageing population, which represents a major threat to the sustainability of government-funded services and benefits, particularly pensions. According to Eurostat the projected old-age dependency ratio in 2060 will 52.55% for the EU-27 (calculated before the accession of Croatia), up from 25.92% in 2010. In this context, the EES seeks to encourage greater numbers of older people to re-enter the job market, as well as to extend the working lives of those already in the labour force.

  • One of the targets within the Europe 2020 Strategy for Growth – a 75% employment rate for all 20-64 year olds – rests heavily on the increased participation of elderly people in the workforce. The EU’s 2010 Employment Guidelines for Member States explicitly mention the involvement of older workers as one way of reaching the 75% goal.
  • Active ageing is emphasised throughout the flagship initiative, ‘Agenda for New Skills and Jobs’. Furthermore, 2012 was the European Year for Active Ageing and Solidarity between Generations: an EU awareness-raising initiative underlining the importance of elderly people to society and the labour market.
National labour market context:

Despite the economic crisis, the Norway’s labour market was performing relatively well. In 2010, the general unemployment level was fairly low (3.6%) and there was nearly equal proportion of men and women in the workforce. In comparison to the rest of the continent, Norway’s participation rate of elderly people in the labour market was particularly high. In 2010, around 69% of 55-64 year olds were working in Norway, as opposed to the EU average of 46% for this age group. The Norwegian average retirement age increased from 62.5 to 63.6 in the period between 1998 and 2010.

The country had a history of strong cooperation between the government, social partners and large labour market organisations.

Policy area: Labour market participation, Work-life balance
Specific policy or labour market problem being addressed:

The main problem being addressed was the demographic shift towards an ageing population, which placed particularly pressures on government-funded services and benefits, particularly pensions.

Aims and objectives of the policy or measure:

In 2001, the tripartite deal Inclusive Workplace Agreement (IW-agreement) was signed between the Norwegian government and key social partners (see above). This encouraged a collaborative approach towards a more inclusive labour market.

The IW-agreement had three main objectives:

  • Reduce sickness absence by at least 20 per cent;
  • Increase the employment of persons with disabilities;
  • Raise the real (average) retirement age.

The third objective fits into a wider active ageing approach, as it aims to prolong the working lives of elderly people. The IW-agreement was in force between 2001 and 2004, although it was later renewed for the periods 2006-2009 and 2010-2013. It sets up a framework for ‘senior policy’. One of its particular goals for the period between 2009 and 2013 was to achieve a six-month rise in the average retirement age in Norway.

Main activities / actions underpinning the policy or measure:

The implementation of the IW-agreement took place at the company level. “IW enterprises” who had signed a cooperation agreement with the Norwegian Labour and Welfare Administration (NAV) received support, resources and advice from 19 Inclusive Workplace Support Centres set up in each of the 19 Norwegian counties and employing around 450 advisers, in exchange of committing to introduce clear policies for the  three objectives of the agreement.  Each IW enterprise was responsible for designing its own goals.

The Centre for Senior Policy (CSP), a tripartite centre of expertise, supported the implementation of the IW-agreement with a broad range of activities.

  • It trained Inclusive Workplace Support Centres advisers, and also directly offered consultancy services on Age Related HRM to businesses and public bodies, advising them as to the steps that they can take to incentivise older workers to stay. It offered information resources to businesses, HR staff and union delegates at all levels. The CSP’s Win-Win website offered customised advice for workers and employers’ representatives hoping to set up a senior policy in their organisation.
  • The CSP cooperated with ‘Vox’, the Norwegian Agency for Lifelong Learning, on a project to project basis to develop courses, seminars and materials relating to senior policies, on education and career guidance.
  • The CSP set up the Norwegian Senior Policy Barometer in 2003, which undertook annual surveys on managerial / employee attitudes towards the integration of older people in the job market.
  • The CSP carries out extensive awareness raising media activities.
Geographical scope of policy or measure: National
Target groups: Older workers and unemployed (aged 50 to 64 years)
Outputs and outcomes of the policy or measure:

Since 2001, there have been some positive developments in terms of perceptions, the adoption of senior policies and the participation rate of elderly people in the workforce, which can be partly related to the implementation of the IW-Agreement.

 

  • There were signs that the attitudes of older people may had been changing in relation to the expected length of their careers. When responding to the Norwegian Senior Policy Survey in 2003, 53% of those over 60 said that they would carry on working past the official retirement age; by 2011, this number had risen to 66%. Generally, there appears to be greater awareness of these issues. In 2009, the CSP website received 19,916 ‘hits’ and 66,165 referrals; within a year, these figures had gone up to 54,334 and 138,299 respectively. Between 2000 and 2011, there has also been a large increase in the number of online searches for ‘active ageing policy’.
  • The number of organisations with specific senior policies in place had increased significantly. In 2010, 90% of public sector bodies had such policies, up from 50% in 2005. Similarly, 50% of businesses had these policies in force in 2010, up from 22% in 2005. This rise can be attributed to the fact that since 2006 all IW-agreement signatories have to introduce clear policies and goals at the company level for its three objectives.
  • As mentioned, around 69% of Norwegians aged 55-64 are currently working. In 2000, the corresponding figure was 65.2%.
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