Prime minister’s proposal proves key to wage agreement

The Confederation of Icelandic Enterprise has signed an extension of its collective agreement with VR, LÍV and Fagfélögin, with a proposal from the prime minister playing a key role, mbl.is reported.

The agreement was reached shortly before 4 p.m., just before the deadline to terminate the agreements over a failure to meet their conditions.

VR chair Halla Gunnarsdóttir said two factors enabled her and colleagues in LÍV and Fagfélögin to accept the extension. They were concerned about groups that had experienced pay cuts and wanted to ensure they would not face the same situation next year.

One factor was the prime minister’s approval of a special interest-benefit supplement, which Halla said could support the groups of greatest concern. The provision includes an inflation benchmark.

The other was an agreement on a clause setting conditions for the agreement. Halla said it would provide some safeguards while taking account of the challenges facing businesses and the views put forward by the Confederation of Icelandic Enterprise.

Asked whether the employers’ organisation had met the unions’ requests, Halla said the parties had reached a result together.