Proposed Lockout Legal, Labour Court Rules Skip to content
Halldór Benjamín Þorbergsson SA Icelandic Confederation of Enterprise
Photo: Golli. Halldór Benjamín Þorbergsson, CEO of the Icelandic Confederation of Enterprise.

Proposed Lockout Legal, Labour Court Rules

The Icelandic Confederation of Enterprise (SA) had the legal right to call a lockout of Efling Union workers in the ongoing wage negotiations between the two parties, Iceland’s Labour Court has ruled. SA was also legally allowed to let all of its member companies vote on the lockout, even those that do not have Efling Union workers on their payroll, according to the ruling. The lockout and workers’ strikes have been postponed while Efling members vote on a mediating proposal. RÚV reported first.

Lockout would affect over 20,000 workers

The Labour Court case is the fourth legal case filed in Iceland’s most tense wage negotiations in decades. When negotiations came to a halt in February, SA held a vote on whether to impose a lockout on Efling workers. The pending lockout would affect all members of Efling, around 21,000 in total, neither allowing them to show up to work, receive a wage, nor accrue benefits and leave.

All member companies of SA were permitted to vote on the proposed lockout, and it was approved with just under 95% of the votes in favour. The Icelandic Confederation of Labour (ASÍ), Efling Union’s parent organisation, protested the fact that companies without Efling workers on their payroll were permitted to vote on the lockout and filed a case with the Labour Court, demanding the lockout be deemed unlawful. The Labour Court has now ruled in favour of SA.

Vote on mediating proposal

The lockout has been postponed until March 9, as Efling members are currently voting on a mediating proposal put forth by the state mediator on March 1. Voting closes at 10:00 AM on March 8. As such, the ruling has no immediate effect on the negotiations, though it would if Efling members reject the mediating proposal. Efling workers’ strikes, which had led to the temporary closure of several hotels in the Reykjavík capital area, have also been postponed while the votes are cast.

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