A planned strike of 400 employees of the Rio Tinto aluminium smelter in Straumsvík, not far from the capital, will go ahead as planned tomorrow, Friday, October 16, RÚV reports. The chairman of the Hlífar labour union says that negotiations have not been productive and employees are tired of waiting of a promised cost of living increase.
Five of the six labour unions that represent Rio Tinto employees voted to strike last week. If nothing changes, the first strike action will take place tomorrow, followed by an indefinite general strike to begin on December 1. According to Reinhold Richter, a union representative, the striking workers are demanding the same wage hikes as are outlined in the “standard of living contract” signed by unions and the Icelandic Confederation of Enterprise (SA) in 2019.
Rio Tinto’s employees have been without a contract since the beginning of July, although they were promised a wage increase in March, with the proviso that in order for the raise to go into effect, the company would first need to finalize new electricity agreements with Landsvirkjun, the National Power Company of Iceland. The smelter failed to come to an agreement with Landsvirkjun, their contract expired, and the dispute was referred to a state mediator. This means that the promise raise been on hold.
Rio Tinto is one of the largest metal and mining corporations in the world. Its executives have long expressed dissatisfaction with its electricity prices and even raised the idea of permanently closing the smelter. They say that that high power costs have contributed to the company’s losses and are preparing a lawsuit against Iceland’s National Power Company.