Aircraft mechanics’ strike demands called unrealistic by former Icelandair CEO

Former Icelandair CEO Jón Karl Ólafsson has called aircraft mechanics’ wage demands a “crazy approach”, according to mbl.is, after union members voted to hold an all-out strike on September 23.

Óskar Einarsson, chairman of the aircraft mechanics’ union, said members had been offered a 3.5 per cent pay rise, in line with recent agreements in the wider labour market. The mechanics consider that insufficient.

“We have fallen behind the comparison groups we use as a reference. They have received wage increases of around 50 per cent, while we have received around 27 per cent. We have aimed to catch up with these comparison groups,” Óskar said.

Ólafsson said the demands were unrealistic, arguing that Icelandair could not afford to negotiate on those terms given its financial performance.

“Wage negotiations should not be about what others are receiving, but about what the company you work for can afford to pay,” he said.

Ólafsson pointed to AirBaltic’s request for a payment moratorium and said airlines such as SAS had repeatedly gone bankrupt.

“Icelandair is becoming a special case, a small company competing with giants. It is very difficult for us to transfer a wage system from Iceland that has no connection with international competition,” he said.

He said the key task was to discuss that issue rather than compare unrelated groups in the Icelandic labour market. He warned that the mechanics’ demands could have serious consequences.

“If aircraft mechanics receive a 20 to 30 per cent increase, it is obvious that pilots will not accept anything less,” Ólafsson said.