Aircraft mechanics cite pay and outsourcing concerns in strike threat
Friday 11th September 2026 on 17:01 in
Iceland
The Association of Icelandic Aircraft Mechanics has cited pay, shift arrangements, the use of contractors and the future of specialised jobs at Icelandair as key reasons for announcing industrial action, mbl.is reports.
Icelandair’s aircraft mechanics have been without a collective agreement since the beginning of the year. Formal negotiations have been on hold since talks at the state mediator’s office broke down on June 22. Informal discussions have taken place since then but have not produced results.
The association said the dispute was not solely about wages. The parties also disagreed over shift systems, the use of contractors and how aircraft mechanics’ jobs and responsibilities would be organised in the future.
The mechanics said they had taken Icelandair’s difficult position after the pandemic into account in their previous collective agreement. They had given up demands for retroactive pay and wage indexation, and had agreed to a longer contract than would otherwise have been the case.
In the association’s view, those concessions have left aircraft mechanics significantly behind in terms of pay. It said their basic wages at Icelandair had not developed at the same rate as those of comparable groups.
The association also linked the dispute to Icelandair’s plans to move specialist and technical jobs out of the country. It said the positions involved valuable expertise built up within Icelandair over many years.
It warned that moving the jobs could also result in technical knowledge and future projects leaving Iceland, while creating a risk of social dumping and bogus contracting.
Because of these concerns, the association has sent a formal letter to the chief executives and board chairmen of nine pension funds that own shares in Icelandair Group, asking them to examine the company’s plans.
Despite the announced action, the Association of Icelandic Aircraft Mechanics said it still wanted to reach an agreement with Icelandair.
“A strong Icelandair and strong aircraft mechanics go hand in hand. It is in everyone’s interest to continue building up expertise, jobs and operations in Iceland,” the statement said.