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On Thursday May 5th a new Collective Agreement on the
private labour market was signed on behalf of the trade unions.
Workers in the
country who are members of the unions within The Icelandic Confederation of
Labour (ASÍ) have had no agreement with their employers for almost half a year.
During this period purchasing power has
decreased, we have been facing growing unemployment, many have experienced a
sharp drop in their income as working hours have been cut and many have to
accept job sharing and part time work. The bargaining negotiations of last
months have been especially difficult for the negotiators as increase in wage
payments have been dragged for months when people really need a pay rise. It
has been of great help to our negotiators that people in the unions have been
very supportive and all decisions have been made in complete agreements. The new agreement will be put to vote in the
trade unions and has to be ratified before May 25th in order to come
in to force.
It is clear that if
the unions and employers had not reached an agreement the road was open for
serious industrial disputes as the trade unions had started preparing for
massive strikes in the country.
Increases in wages
According to the
agreement all wages will rise at least by 11,4% in the next 3 years. Minimum
wages will however rise by 23,6%.
General wage rise:
1.
June 2011: 4,25%
1.
February 2012: 3,50%
1.
February 2013: 3,25%
Increases in wage
tables
1.
June 2011: 12.000 kr.
1.
February 2012: 11.000 kr.
1.
February 2013: 11.000 kr.
Income guarantee
for full time work will be
1.
June 2011: 182.000 kr.
1.
February 2012: 193.000 kr.
1.
February 2013: 204.000 kr.
Special payments (because how late the
agreement was made)In June workers in
full time work in the months March – May will be paid 50.000 kr. once. Workers
who left employment in April or who are in part time work will be paid
proportionally according to time worked in March and April. Workers who started
to work in April and are in work on May 5 will be paid proportionally according
to time worked in March and April.
Special
payment in addition to the Vacation supplement in 2011: 10.000 kr.
Special payment in
addition to the December supplement in 2011: 15.000 kr. Other issues
The agreement deals
with many issues other than wages such as rights in case of accident, pension
rights, overtime work and time-of, calculation of overtime pay, definition of
shift work, week-end work and meal brakes and insurances in case of accidents
when working outside Iceland.
In relation to the
collective agreement the government, after dialogue with the trade unions and
the employers organisation, issued a statement on many issues in the interest
of workers. The statement deals with issues like unemployment and welfare
benefits, taxes, education and active employment measures and workers pension
rights. The statement has to be seen as an important and integrated part of the
agreement.
The agreement is valid to February 1th 2014.
The agreement is
based on some pre conditions. As regards 2011 the conditions are made as regard
the statement given by the government on May 5th. For 2012 and 2013
conditions are made as regards inflation, the value of the krona and real
wages.
If conditions for
2011 will not hold, the agreement expires on February 1 2012. If the conditions
for 2012 and 2013 will not hold, the agreement can be improved if both parties
agree or terminated by either or both parties to the agreement. In that case it
expires on February 1 2012 or February 1 2013.
What do we gain by the agreement?
We list here the
most important points in the agreement:
·
The wage tables on the private/general labour market
increase by 17-21,6% or 34,000 kronas over the term of agreement.
·
Income guarantee for full time work increases by
23,6%.
·
With higher wage tables the safety net is improved for
those who receive wages over wage tables stipulated in union agreements.
·
Special payments make up for the delay in the
negotiation process
·
The government will guarantee indexed tax credit and
will revise the tax system as regards child benefits and interest rates
deduction with relation to assets.
·
The pension system for workers on the general labour
market will now be improved by increasing payments into the system in the years
2014-2020.
·
One of the important goals of this agreement is to
increase employment, create jobs.
·
A special campaign will be launched for the unemployed
where the main target is to find jobs and give those who are out of work
opportunities in the formal and informal education system, both young people
and those who are above school age.
·
The government will support The Wage Guarantee Fund
and The Maternity/Paternity fund in order to guarantee payments to workers on
childbirth leave and those who risk loss of payments due to bankrupt companies.
·
Unemployment benefits and other welfare benefits will
increases as are stipulated in the agreement.
·
New legislation will guarantee rehabilitation rights
for all workers and those who are receiving benefits from the pension funds.
·
The government will guarantee indexed tax credit and
will revise the tax system as regards child benefits and interest rates
deduction with relation to assets.
·
In the statement issued by the government some social
reforms will improve the legal rights of workers.
We hope that once
you have reviewed the agreement you will agree with us on its benefits. It is
very important that you take part in the vote and express your will as regards
the new agreement.
We encourage you to participate in the vote.
