Four Hotels Shuttered as Wage Negotiations Drag On

Strike efling hotel workers union

As the ongoing wage dispute between the Efling union and the Confederation of Icelandic Enterprise (SA) drags on, managers decided to shutter four hotels yesterday. Two additional hotels will be closed tomorrow – and the seventh on Saturday. The Chair of the Association of Companies in Hotel and Accommodation Services (FHG) hopes that the wage dispute will be resolved sooner rather than later.

Heartbreaking having to close again

“It’s an incredible situation in which to find oneself. We have just reopened the hotels after a two-year closure due to the pandemic. The fact that this is happening to us again is heartbreaking,” Kristófer Oliversson, Chair of the Association of Companies in Hotel and Accommodation Services (FHG), stated in an interview with Morgunblaðið.

At the end of January, Efling union members working at seven hotels in the capital area voted in favour of a strike beginning on February 7. After two weeks of strikes, the first four of seven hotels targeted by the first round of strikes were shuttered yesterday. These include Hotel Reykjavík Saga and Hotel Reykjavík Grand, which offer, in total, over 400 rooms.

“It’s admirable that the managers of these hotels have held out for such a long time. They’re trying to keep the other three hotels open,” Kristófer stated. Companies within the hotel and hospitality industry are worried about the consequences of the ongoing Efling strikes and further strikes that are impending.

People will be on the streets

According to an announcement from the Icelandic Tourist Board, a decision has been made to close two additional hotels tomorrow – and a third on Saturday. These are Berjaya Reykjavik Natura Hotel, Hilton Reykjavík Nordica, and Berjaya Reykjavik Marina Hotel. The three hotels offer over 600 rooms. Yesterday morning, an emergency phone line was opened for hotel guests who may require assistance or need help with rebookings.

“People will be out on the streets as the week progresses. That is the situation with which the Icelandic Tourist Board is trying to deal,” Kristófer stated.

He also suggested the establishment of a mass-aid centre on the rationale that it was difficult to stop the flow of visitors. He does not see how to transport a large group of people from one place to another.

“The big booking engines don’t provide us with the necessary information so that we can contact guests directly. They keep this information to themselves so as to sell additional services to the guests. This means that it’s unclear whether visitors can be notified of the closures.”

Barring any unforeseen developments, all Efling members who work in hotels and guesthouses will be on strike at noon on Tuesday. Kristófer told Morgunblaðið that there are currently no plans to close hotels that will be affected by these latest strike actions.

“Of course, we hope that the wage dispute will be resolved,” Kristófer Oliversson concluded.