Business Iceland (SA) has warned that if workers succeed in getting their demands met, most SA companies will raise prices on goods, fire many employees, or both.
Kjarninn reports that, according to an SA survey conducted amongst unnamed “main companies” within SA, 55.4% would either raise prices on their goods and services or fire a portion of their staff if the main demand of the Federation of General and Special Workers in Iceland (SGS) – to raise the minimum wage for their workers to 300,000 ISK per month – ends up succeeding.
Despite the demand having the support of over 90% of the country, SA contends workers are asking for too much. Drífa Snædal, the managing director of SGS, told RÚV that it was “food for thought” that SA, on behalf of its companies, says that they cannot pay a living wage. On the contrary, she told reporters, numerous companies within SA have already reached out, expressing a willingness to meet the workers’ demands.
In related news, “Flóabandalagið” (“The Bay Alliace”), a labour union umbrella consisting of the unions Efling, Hlíf and the Labour and Seamen’s Association of Keflavík, has reportedly made little headway with management in their negotiations, and the labour unions VR and the Commercial Federation of Iceland (LÍV) have decided that they will strike. This will begin with a two-day work stoppage on May 28 and 29, followed by an indefinite general strike on June 6, which many others are planning to take part in.
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