Labour groups urge action to preserve collective agreements

The negotiating committees of VR, LÍV and Fagfélögin have called on employers and the government to seek solutions to preserve their collective agreements and end uncertainty in the labour market, mbl.is reports.

The committees expressed their position in a joint statement approved on Monday evening. They said the assumptions underpinning the agreements had failed.

Workers had accepted modest wage increases on the understanding that large companies would restrain price rises and that central and local government would keep increases in fees moderate. The expectation was that inflation would fall, followed by lower policy interest rates.

“None of this has happened,” the statement said. Inflation is rising, policy interest rates have remained high for almost four years, and wages covered by collective agreements have increased less than inflation. Housing costs for most workers have also risen sharply during the agreement period, leaving workers to pay the bill, the committees said.

The committees said they were deeply concerned about the situation facing families with children. Despite promises to protect their interests, charges on families had increased and services for children had been reduced, they said. Families with children are also the group bearing the heaviest burden from high interest rates through housing loans and rent.

To preserve the agreements, the committees said contractually agreed wages must be corrected in line with inflation, the number of holidays should be increased to offset cuts to services for preschool and primary school children, and a genuine cap must be placed on price and fee increases.

They also said the state and local authorities must honour their commitments on housing. The negotiating committees urged employers and the government to approach the issue with a focus on solutions so that uncertainty in the labour market could quickly be eliminated.