Faroese unions secure wage increases in fixed amounts rather than percentages

Unions representing workers in the Faroe Islands have negotiated wage increases in fixed amounts rather than percentage-based raises, a move welcomed by the Havnar Arbeiðskvinnufelag (Tórshavn Women’s Workers’ Union), Kringvarp Føroya reports.

Ruth Boetius, chair of the union, said the decision was made because current wages are so low that a percentage increase would be insufficient. “We cannot negotiate in percentages when we start with such low wages. It is better to receive wage growth in fixed amounts,” she stated.

Under the new two-year agreement between employer associations and unions in Tórshavn and Klaksvík, hourly wages will rise by 4.17 kronur on 1 May this year and by 5.97 kronur on 1 May next year. This will bring the hourly wage to 171.94 kronur in 2027. Overtime pay will also increase by 0.5% next year, raising it to 12.5%.

The agreement allocates part of the wage fund to increase seniority-based supplements and adjusts certain individual contracts. Union members have also gained additional days off: 1 November will become a half-day holiday for Tórshavn unions, while St. Olav’s Eve will be a full holiday for unions outside the capital.

The allowance for hairdressers will rise from 9.15% to 15%. Workers on fixed-term contracts will now receive the difference between their wages and unemployment benefits for three months instead of two. Employers will also cover the wage gap for injured workers receiving sick pay for up to six months. The agreement further extends the employer’s payment obligation to 18 months.