Confederation of Icelandic Enterprise Warns Against Companies Raising Prices Skip to content
Halldór Benjamín
Photo: Halldór Benjamín.

Confederation of Icelandic Enterprise Warns Against Companies Raising Prices

Halldór Benjamín Þorbergsson, head of the SA Confederation of Icelandic Enterprise, warns against businesses raising their prices in the wake of recent union deals in Iceland, RÚV reports.

Union leaders have been negotiating with the confederation over the last weeks and months in order to raise salaries of their members. But many companies have said that they in turn intend to raise their prices to deal with the added expenditure that comes with the new deals.

“It is no secret that the negotiated increases in salary will be tough on some companies, but that should test the possibility of businesses rearranging operations and searching for more advantageous ways to do business,” Halldór said in a post on the confederation’s website. “Everybody must contribute and be responsible. That goes for those with the highest salaries too,” he added.

A few companies have come out recently, saying that they are forced to raise the prices of their products in the wake of the new union deals. One such company, ÍSAM, caused outrage when they declared that they intend to raise their prices by 3.9% and the prices of imported goods by 1.9%

In his new post, Halldór talks about the recent deals, explaining how they center around a four-pronged solution: “Higher salaries, especially for those with low incomes, an increased flexibility to shorten the workweek, lower taxes and ways to create an atmosphere that is conducive to lowering taxes in Iceland, indefinitely.”

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