Optimism in Ongoing Wage Negotiations Skip to content

Optimism in Ongoing Wage Negotiations

By Yelena

Westman Islands fish processing plant
Photo: Golli. Workers share some laughs at a fish processing plant in the Westman Islands.

The ongoing collective agreement negotiations in Iceland are going well, according to union representatives. Unions are hoping to negotiate a three-year agreement while the Confederation of Icelandic Enterprise (SA) is hoping for a five-year agreement. Both sides have a willingness to negotiate, but say the involvement of the government will be crucial.

“We are ready to negotiate and there’s a good spirit between the contracting parties,” stated Vilhjálmur Birgisson, chairman of the Federation of General and Special workers in Iceland (SGS). “We have reached the point now where it’s quite clear that we need to speak to the government before the weekend, to know what their involvement will be in these agreements.”

Price of services and goods rising

January is the month when fee hikes for public services take effect in Iceland. Prices for goods have also been rising alongside high inflation for more than a year. Both unions and the Confederation of Icelandic Enterprise (SA) have called on municipalities and businesses to keep price hikes to a minimum this year to ease the wage negotiations.

Salaries not a sticking point

Vilhjálmur says that wages themselves are not a sticking point in the negotiations at this time, and speculates that the parties can agree on a period between three and five years for the contract.

It is less than a year since the conclusion of very tense and prolonged collective agreement negotiations between SA and Efling. Tension was also high in November after the current negotiations began, and they were put on hold by union leaders due to proposed municipal fee hikes.

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