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Sólveig Anna Jónsdóttir
Photo: Golli. Sólveig Anna Jónsdóttir.

Wage Negotiations Halted

The coalition of unions has ended its negotiations with the Confederation of Icelandic Enterprise (SA) on a new collective bargaining agreement. The coalition claims that negotiations were not moving forward, Vísir reports.

Disagreement on economic targets

In a press release, the coalition claims that a clause on the development of inflation and interest rates became the point of contention. The coalition hoped to include a clause in the four-year deal to protect workers from downside risks if inflation and interest rate targets were not met.

“The coalition is deeply disappointed by SA choosing to derail negotiations because of this clause,” the release said. “It’s especially regrettable, since both parties have worked hard to reach an agreement on modest salary increases and an agreement on salaries had already been reached in principle. The signing of new agreement was within our grasp.”

The coalition claims that all long-term agreements in recent decades have included a clause such as the one in dispute. “This would mean that workers alone would carry the risks if the targets aren’t reached. It is strange that SA is not ready to cement in a long-term agreement the goals they have often claimed are most important to them: lowering inflation and interest rates.”

Government benefit increases discussed

Negotiations have been ongoing for weeks, with parties also conferring with government ministers. The unions have called for increased government spending on child and housing benefits in exchange for modest salary increases. “We’ve been able to deepen the conversation on possible scenarios and how the government can be involved,” said Prime Minister Katrín Jakobsdóttir after a meeting with union coalition on Thursday. “I’ve repeatedly said that we are willing to back a collective bargaining agreement that supports inflation targets and creates the conditions to lower interest rates. All of us agree on this point.”

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