Broad coalition signs extension to agreements with SA

The Broad Coalition of unions has signed an extension to its collective agreements with the Confederation of Icelandic Enterprise (SA), mbl.is reported. The coalition comprises the Icelandic Federation of General and Special Workers, Efling union and Samiðn, the Federation of Industrial Workers. Its members account for about 60% of the Icelandic Confederation of Labour’s membership.

Vilhjálmur Birgisson, head of the Icelandic Federation of General and Special Workers, told mbl.is that the agreement followed an overall assessment of the work done in recent weeks.

“There is no sense in doing anything other than saving these agreements and ensuring workers receive the wage increases they are due after the New Year,” he said. The lowest wage scale for manual workers will exceed 500,000 krónur for the first time, he said, adding that it would have been unreasonable to put those increases at risk while unemployment is rising.

Birgisson praised the government’s involvement, pointing to a package of measures intended to help keep the agreements in force. He and Sólveig Anna Jónsdóttir, head of Efling, met twice during the day with the prime minister and finance minister.

Birgisson said the package would be similar to one introduced in 2024, regardless of whether any agreements are terminated. The package is well advanced and was discussed at a cabinet meeting late in the afternoon, he said.

The coalition dropped a proposed new provision linking the agreements to certain conditions and shortened their term by one month. They will now expire on December 31, 2027. Birgisson said he was pleased the parties had avoided a confrontation, calling it responsible to avoid conflict under the circumstances.

Meanwhile, VR, LÍV and Fagfélögin have been authorised to terminate their agreements with SA on Thursday if they receive no offer in response. Representatives of the parties met at Karphúsið, where negotiations are held. The Broad Coalition’s agreement with SA is expected to put pressure on other labour-market parties to reach agreements and keep them in force.