Unions Split on Wage Negotiations Skip to content
vr union iceland, Ragnar Þór Ingólfsson
Photo: VR Chairman Ragnar Þór Ingólfsson.

Unions Split on Wage Negotiations

The coalition of unions engaged in wage negotiations with the Confederation of Icelandic Enterprise (SA) suffered a setback yesterday when VR, one of the largest unions, pulled out of the talks. The other unions will go forward with their negotiations as they’ve reached an agreement on major points of contention, Morgunblaðið reports.

Negotiations on a new collective bargaining agreement had been halted for two weeks after a disagreement on a clause in the proposed four-year deal to protect workers from downside risks if inflation and interest rate targets were not met. An agreement on salaries had already been made in principle.

Negotiations to proceed

Talks began again Wednesday and apart from VR, the unions accepted a compromise on the aforementioned clause. “We disagreed on whether the clause went far enough and we decided to step aside,” VR President Ragnar Þór Ingólfsson said. “I sincerely hope that they reach an acceptable deal for their constituents and that could be the foundation that we could build from and reach an agreement on what we need for our constituents.”

SA Director Sigríður Margrét Oddsdóttir said that it was a disappointment to not be able to reach an agreement with the coalition as a whole. She is still hopeful for a long-term agreement that would create the conditions to lower inflation and interest rates.

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