Icelandair aircraft mechanics earn average monthly salary of 1.4 million krónur

Aircraft mechanics at Icelandair earn an average of about 1.4 million krónur per month, mbl.is reports, as a strike is scheduled to begin on September 23. The state mediator has called the parties to a new negotiating meeting on Friday.

Reliable sources cited by mbl.is say that meeting the mechanics’ pay demands would increase Icelandair’s labour costs for aircraft mechanics by 25 to 30 per cent.

Under the collective agreement between the Icelandic Aircraft Mechanics Association and Icelandair, signed in May 2020, starting pay is 601,030 krónur per month. Few mechanics are believed to remain on that rate, according to the newspaper’s sources.

Pay rises to 641,165 krónur after one year and increases at regular intervals over the 18-year salary scale. After 18 years of employment, the monthly salary reaches 790,235 krónur.

State mediator Ástráður Haraldsson has summoned the full negotiating committees of Icelandair and the Icelandic Aircraft Mechanics Association to a meeting at noon on Friday. He told Morgunblaðið that he had met both sides on Wednesday and Thursday before deciding to call the meeting.

“I am making a final attempt to prevent this strike,” Ástráður said.

By law, the state mediator can submit a mediation proposal that would postpone the strike while the parties vote on it.

The planned strike is already affecting the tourism industry. Tourism companies have begun receiving cancellations from foreign visitors, as well as questions about cancelling or postponing planned stays in Iceland or receiving refunds.

Jóhannes Þór Skúlason, director general of the Icelandic Travel Industry Association, said the dispute was already having significant harmful effects on tourism companies across the country.

He said it was clear that the government would have to seriously consider the possible impact of the strike on the economy, particularly in light of the goal of presenting a balanced budget next year.