SGS calls for national pact to curb prices

The Icelandic Federation of Labour Unions, SGS, has called on all municipalities to join a national pact on price stability, mbl.is reports. The federation says the assumptions underlying current collective agreements have been breached.

SGS says the government, municipalities, businesses, retailers, service providers and others who influence prices should commit to limiting increases. Its proposal is for prices and tariffs to rise by no more than 2.5 percent for the remainder of the current collective agreements.

The aim is to reduce inflation and interest rates and create conditions for the agreements to remain in force, SGS said.

The federation said the plan would only work if all parties accepted responsibility and showed restraint. Lower inflation and interest rates would benefit households, municipalities, the state treasury and companies.

SGS said workers had already contributed by signing long-term collective agreements based on moderate wage increases. It is now calling on all other parties with influence over prices to make a similar contribution.

The federation has asked each municipality to provide a written response on whether it is prepared to participate. SGS will compile the responses and keep track of the municipalities willing to join the initiative.