Landmark Labour Negotiations Concluded

On March 7, a long-term agreement was reached between the Confederation of Icelandic Enterprise, and labour unions Starfsgreinasambandið, Efling and Samiðn. The new contract aims to create conditions for lower inflation, decreased index rates and increase stability.

Dubbed Stöðugleikasamningurinn (the Agreement for Stability), it is set to increase the living conditions for tens of thousands of employees, effective until 2028.

Following negotiations starting in early 2024, the agreement introduces many changes to the Icelandic labour market. Notable actions include wage increases; housing support for parents on the rental market; free school meals; increased financial child support; and the building of 1.000 apartments every year until 2028.

After negotiations were reached, the Icelandic government subsequently announced the Vaxandi velsæld (Increased Prosperity) action plan, funding the operations with 80 billion ISK.