Vote on New Mediating Proposal Closing, Results Expected Soon

A vote on the temporarily-appointed state mediator’s new proposal will end at 10 AM today. The results of the vote are expected to be in shortly thereafter.

Results expected shortly after voting closes

On March 1, temporarily-appointed state mediator Ástráður Haraldsson called a press conference to announce that representatives from the Confederation of Icelandic Enterprise (SA) and the Efling union had agreed to vote on his new mediating proposal. While voting took place, all ongoing and impending strikes and lockouts were to be postponed.

Voting began at noon, Friday, March 3, and it is set to conclude at 10 AM this morning.

As previously noted, the new wage agreement between Efling and SA, as provided by the proposal, would be fully retroactive from November 1, 2022, and salary increases would be tantamount to those stipulated in agreements signed by other unions. The contract would, however, differ in two respect from other similar contracts: a new job title for general hotel staff (i.e. almennt starfsfólk gistihúsa) would be created and drivers of the oil companies and Samskip would receive additional hazard pay.

Sólveig Anna Jónsdóttir, Chair of the Efling union, has stated that she would vote in favour of the proposal.

The website of the Office of the State Mediator notes that the wage rates in the main collective agreement will increase between ISK 35,000 ($246 / €233) and ISK 52,258 ($368 / €349) ISK per month, the average increase being about ISK 42,000 ($295 / €280). The relative increase in wage rates is between 9.5% and 13%, with the average increase being over 11%.

This article will be updated.

Vote on New Proposal Approved, Strikes and Lockout Postponed

State mediator

Temporarily-appointed state mediator Ástráður Haraldsson called a press conference at 10 AM this morning. He told reporters that representatives from the Confederation of Icelandic Enterprise (SA) and the Efling union had approved of his new mediating proposal and that all ongoing and impending strikes and the proposed lockout would be postponed while voting took place.

Voting to begin on Friday

“Good morning, I’ve called this meeting because I’ve decided to submit a new mediating proposal in the dispute between SA and the Efling union,” temporarily-appointed state mediator Ástráður Haraldsson told reporters at a press conference that began at 10 AM this morning.

“This mediating proposal will replace the old one, which was originally submitted on January 26. The involved parties have agreed to put the proposal to a vote, which will be conducted on the website of the State Mediator’s Office. Voting will begin on Friday, March 3, at noon, and it will conclude on Wednesday, March 8. We believe that the results will be in shortly thereafter. The parties have also agreed to postpone all ongoing and impending strikes and the lockout beginning at noon today and until the results are in.”

Ástráður added that the new proposal was very similar to the original one; the agreement would be retroactive and salary increases would be the same as stipulated in agreements signed by other unions. “There is one item that is different. There is an alteration to the employment title for general workers in guesthouses and their respective salary bracket, but otherwise, it’s the same agreement as signed in the SGS agreement.”

Ástráður also noted that the parties would have six days to vote on the proposal to ensure that as many people as possible could vote.

Things evolve over time

When asked to pinpoint what exactly had led to this resolution, Ástráður responded thusly:

“It’s always the case, in such disputes, that life goes on, and things change, and we’ve had strikes going on for nine or ten days straight, which affects these negotiations. But the main thing is that the parties managed to conclude certain matters that aren’t a part of the proposal itself – and which have nothing to do with my role in these negotiations – but that matter in their communications and their future relationship. They managed to wrap that up yesterday. So they’ve agreed to vote on the proposal. But we’ll have to wait for the results.”

Ástráður clarified the above point by pointing to certain side agreements, aside from the main wage negotiations, that aren’t addressed directly in the proposal itself, but that were crucial to the proposal being approved. When asked if the negotiating committees would encourage members to approve of the proposal, Ástráður was unwilling to say.

Displeased with the retroactive clause of the agreement

Vísir also spoke to Halldór Benjamín Þorbergsson, Director of SA, who stated that he would need to place the proposal within its proper context. The dispute had been locked in a Gordian knot and that the parties were worn out after long negotiations. The strikes and impending lockout also had an effect.

“We expect that the disputing parties will encourage members to approve of the proposal,” Halldór stated, emphasising that the wage agreement stipulated in the new proposal was, in its material substance, the same as the original proposal. He also stated that he was not pleased with the fact that the agreements would be retroactive, as he did not want to reward unions for going on strike.

“Everyone had to yield certain demands … the magic often occurs in the grey areas,” Halldór observed. He concluded by saying that he was greatly displeased with the nature of the two parties’ discourse over the past weeks.

This article was updated at 10:46 AM

State Mediator’s Proposal Meets With Criticism from Efling and SA

SA / Efling Union

State mediator Aðalsteinn Leifsson presented his mediation proposal in the wage dispute between Efling and SA at a press conference yesterday. The proposal met with criticism from both SA and the Efling Union. The state mediator believes that he is well within his legal rights.

A controversial step, setting a questionable precedent

Yesterday, State mediator Aðalsteinn Leifsson presented a special mediating proposal (i.e. miðlunartillaga) to resolve the dispute between the Efling Union and the Confederation of Icelandic Enterprise (SA). Negotiations between the two parties have devolved into a sort of Gordian knot, with the last meeting between Efling and SA lasting only a minute. The proposal means that members of the Efling union will have to vote on the same contract previously agreed upon by other unions.

Sólveig Anna Jónsdóttir, Chair of Efling, told RÚV yesterday that she believed the state mediator had broken the law with his proposal: he had not consulted with Efling. Halldór Benjamín Þorbergsson, Director of SA, struck a similar note, arguing that it was “the right of the disputing parties” to bring the case to a conclusion.

State Mediator defends his proposal

Following the response from Efling and SA, Aðalsteinn sent out a press release yesterday in which he rejected any claims about the illegality of the proposal. A mediating proposal was one of the resources available to the state mediator to try to ensure peace in the labour market.

“Given the state of the dispute between SA and Efling, it was my assessment, the office’s assessment, that it was inevitable to try this remedy.”

Aðalsteinn admitted that the labour legislation imposes the duty on the state mediator to consult with the parties to a wage dispute before submitting such a proposal: this applies to the content of the proposal and the procedure for voting.

“And that’s why I called representatives of both parties to a meeting with me today for this purpose. I discussed it with them before the proposal was made public. This obligation to consult the parties, however, does not imply that they have the right to intervene or veto the proposal.”

As noted by RÚV, Aðalsteinn denies that the way in which the proposal was presented was illegal in any way. When asked if the parties to a dispute should be familiar with the content of the legislation, he replied that the law was very clear as regards the authorisation of a mediating proposal. “It is also very clear in the labour legislation that when a mediation proposal has been submitted, a vote must take place.”

The proposal a “monstrosity”

Sólveig Anna went on to describe the proposal as a “monstrosity” (i.e. óskapnaður) that failed to mediate anything. Efling’s point of view had not been taken into account: the state mediator was simply imposing SA’s offer on the Efling Union.

Aðalsteinn replied that this was far from the case. He was not proposing an agreement from SA but rather one that the Federation of General and Special workers in Iceland (SGS) had negotiated with SA.

“After very difficult and demanding wage negotiations – where an agreement was struck. This agreement has since been approved by an overwhelming majority of votes in all of the eighteen unions within SGS. It should also be noted that this agreement includes the highest proportional increases that have been settled in this round of wage negotiations, within the general labour market, over the past weeks and months.”

Efling yet to submit its membership list

At the time of writing, the Efling union had not submitted its membership list to the state mediator; the deadline was 8 PM yesterday. As noted by RÚV, Efling is thereby shirking its statutory duty, given that the office of the state mediator has the right to receive the membership list.

Elísabet S. Ólafsdóttir, Chief of Staff at the State Mediator’ office, told RÚV yesterday that the office would have to consider its next steps: “At this stage, we can send Efling another notice. If the notice proves ineffective, it may eventually be necessary to obtain a ruling from the district court to force delivery.”

The proposal will be put to a vote by the members of Efling and voting will begin at 12 noon on Saturday and continue until 5 PM on Tuesday.

This article will be updated