Reykjavík City Council pays Dag B. Eggertsson nearly ten million krónas in vacation settlement

The Reykjavík City Council has made a significant payment of nearly ten million Icelandic krónas to Dag B. Eggertsson, the former mayor, as a settlement for unused vacation days upon his departure from office. This decision has raised concerns regarding the fairness of such arrangements for employees, according to Thorarin Eyfjord, the chairman of the Sameyki union.

Eggertsson had accumulated 69 unused vacation days over his ten-year tenure as mayor, which he was compensated for upon leaving. The total payout, including wages-related fees, amounted to 9,773,617 krónas. The mayor’s vacation rights are based on a collective bargaining agreement between Reykjavík City Council and Sameyki.

Eyfjord expressed that this payout seems unusual, as there are no known instances of similar large-scale settlements occurring within Reykjavík City or other public entities in recent years. He emphasized that there has been considerable pressure on regular employees to use their vacation days within a reasonable timeframe.

During the wage negotiations in 2021, the accumulation of vacation days was a significant topic of discussion, with agreements in place to discourage employees from hoarding old vacation days. Any potential accumulation has been justified in specific circumstances, but the situation raises questions about equality among employees regarding vacation entitlements.

Eyfjord stated it is essential to assess how vacation rights are applied to ensure that all employees working in Reykjavík or other public sectors have equal terms under similar circumstances.