Wage Contracts Intact, Taxation Debated Skip to content

Wage Contracts Intact, Taxation Debated

The Confederation of Icelandic Employers (SA) decided at a meeting last night to extend wage contracts on the general employment market until the end of November 2010. However, SA does not agree with certain points in the government’s plans on taxation.

Managing director of SA Vilhjálmur Egilsson. Photo by Geir Ólafsson.

The government, SA and the Confederation of Labor (ASÍ) are currently discussing the future of the stability pact, which they signed in June. Recent developments, such as a proposed increased energy tax, have jeopardized the pact.

Managing director of SA Vilhjálmur Egilsson and President of ASÍ Gylfi Arnbjörnsson discussed the matter on RÚV’s news magazine Kastljós yesterday evening. Egilsson argued that the energy tax is preventing sorely needed foreign investments.

According to visir.is, the ASÍ negotiating committee celebrates SA’s decision to extend the wage contracts and trusts that an acceptable solution can be reached on the future of the stability pact.

Due to disagreement on taxation issues, continued discussions with the government have been requested. SA emphasizes the importance of such discussions taking place as soon as possible.

Click here to read more about the proposed energy tax.

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