All Unions But One Settle On Collective Bargaining Agreement - The Reykjavik Grapevine

All Unions But One Settle On Collective Bargaining Agreement

Published February 24, 2014

All the unions but one that initially voted against a collective bargaining agreement struck between union leadership and employers have accepted management’s counter-offer.

Vísir reports that all 17 unions that voted against the agreement, apart from the Akranes Trade Union, have accepted additional proposals made by the Confedaration of Icelandic Employers (SA). These will be added to the agreement that the majority of Iceland’s labour unions rejected last January.

The new offer includes a one-time 14,600 ISK payment for the month of January, as well as an increase in the yearly December bonus and holiday pay by about 30,000 ISK.

As reported last January, 17 unions voted against the agreement, whilst 14 voted in favour. Many union felt the proposed pay rise for the lowest paid workers – 2.8% – was not enough to constitute a living wage.

The agreement struck between the Confederation of Icelandic Labour Unions (ASÍ) and SA also proposed changes to the tax code. A person making 246,000 ISK per month will see 8,000 ISK more per month, before taxes, and no rebates on their taxes. At the same time, another person making 1 million ISK per month will get an extra 28,000 ISK per month, plus 3,500 ISK taken off their monthly taxes.

For more on this story, see When Solidarity Happens.


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