Government discusses fees and rent protections with employers and unions

The government is discussing possible fee increases, rental protections and inflation-linked issues with the Confederation of Icelandic Enterprise and the Icelandic Confederation of Labour, mbl.is reported. The talks are linked to the possibility that collective agreements could be terminated this winter.

The finance minister presented a 2027 budget proposal on Monday in which fees would rise by an average of 5.2 percent, in line with inflation. At the same time, the government aims to counter inflation.

Prime Minister Kristrún Frostadóttir said the government was holding three-way talks with the two organisations to prevent collective-agreement provisions from being used this winter to terminate agreements because inflation had exceeded the agreed threshold.

“Various issues are being discussed, including the fees being introduced, labour-market matters, inflation-linked issues, rental protections and other related matters,” Frostadóttir said. She added that the discussions also covered simplification measures, particularly those concerning businesses.

Inga Sæland, the minister of education and children, presented the rental-protection measure as a ban on index-linking rental agreements. Under the proposal, rent could be increased only once a year.

Frostadóttir said she hoped the talks would result in the collective agreements remaining in force. She said discussions with the employers’ and labour organisations were continuing and described that as positive.