Municipal employers reject wage agreement despite union deal with finance ministry

The Municipal Employers’ Association (KAF) is refusing to accept a wage framework agreement already signed by 12 unions with the Faroese finance ministry, according to a report by Kringvarp Føroya. The dispute comes as KAF prepares to resume contract negotiations with unions, including the Healthcare Workers’ Association, next week.

Mary Antonsdóttir, chair of the Healthcare Workers’ Association, criticised KAF’s stance, calling it “outrageous” that the employer group rejects an agreement it had no role in shaping. “I will not accept a framework that we had no influence over,” she told the broadcaster.

The 12 unions reached a deal with the finance ministry in February, securing a 3.87% wage increase for the first year. However, KAF—responsible for municipal workers’ contracts—has declined to adopt the same terms, instead insisting on separate negotiations with each union, including healthcare workers.

Contract talks between KAF and the Healthcare Workers’ Association are set to restart in the coming week.