Labor disputes escalate against Seigla staffing agency in Iceland

Labor disputes concerning wage violations are ongoing against the staffing agency Seigla. This agency is the third of its kind owned by the same individuals operating in Iceland. Seigla’s attorney denies allegations of wage violations.

According to Saga Kjartansdóttir from the Icelandic Confederation of Labor, Seigla has been a significant concern for the labor movement. Currently, there are 34 wage violation cases open against Seigla at the labor union Hlíf. The union has had to intervene repeatedly on behalf of its members. This involvement began in spring 2023 when an employee of Seigla was assaulted, prompting the union to assist. Since then, numerous new cases have arisen.

Gundega Jaunlinina, vice-chair of Hlíf, confirmed that many current and former Seigla employees have come forward, expressing a clear demand for accountability from problematic companies. Jaunlinina stated, “There is a growing need to identify the black sheep and to engage with companies that can be trusted.”

Seigla’s owner, Halla Rut Bjarnadóttir, and attorney Skúli Sveinsson refute the claims of wage violations. Sveinsson noted that Hlíf has legally pursued only one wage-related case against Seigla, primarily focused on a legal interpretation issue in European law. He asserted that allegations of severe contract breaches are unfounded and arise from a misunderstanding of newly established European regulatory principles.

The issues surrounding Seigla were also discussed in a recent radio segment, amplifying public interest and prompting inquiries from various stakeholders regarding their business dealings with the company.