Union leaders meet ministers twice over labor agreements

Union leaders Vilhjálmur Birgisson and Sólveig Anna Jónsdóttir met the prime minister and finance minister twice on Tuesday to discuss the labor market and possible ways to address the breakdown of key assumptions underpinning wage agreements, mbl.is reported.

The government also discussed a package of measures intended to help keep the agreements in force. The package is nearing completion, but the government will not withdraw a planned 15.9% increase in the kilometre charge, which is included in next year’s budget bill.

VR chair Halla Gunnarsdóttir told mbl.is that SA was trying to pressure the government instead of sitting down with its negotiating partners to discuss the agreement. According to mbl.is sources, SA wants the government to reverse the kilometre-charge increase. SA managing director Bjarni Benediktsson has said the increase would fuel inflation and complicate wage negotiations.

Birgisson and Jónsdóttir spoke to mbl.is after their second meeting with ministers, held at the prime minister’s office on Tuesday evening. They have been working for weeks to find a way forward. Birgisson described the meetings as constructive, saying they focused on finding common ground and that much was at stake for union members and society as a whole.

He said the government’s package included measures that would benefit workers’ rights and other issues. The measures would be presented if an agreement is reached, he said.

One option under consideration is a new clause setting conditions for the second half of the agreement. Birgisson said the unions wanted the agreements to remain in force if inflation was 3.9% or lower. If inflation exceeded that level, the agreement could be shortened by two or three months.

Birgisson said a joint effort should make it possible to bring inflation down. He pointed to municipalities and the government limiting increases in fees to 2.5%, as well as grocery chains and other companies stepping forward.