Finnbjörn says wage talks took months to deliver

Finnbjörn Hermannsson, president of the Icelandic Confederation of Labour (ASÍ), said the union had been negotiating with the government and the Confederation of Icelandic Enterprise since May. He said reaching an agreement was the most important outcome for the public, mbl.is reported.

Hermannsson also said the agreement should help restart the general housing system, a rental scheme for people on low incomes. The scheme has provided 1,300 homes over the past 10 years, he said, but should have delivered considerably more. The government is prepared to give municipalities a one-year exemption to help move the system forward.

He made the comments at a news conference at the government’s reception house, called by Prime Minister Kristrún Frostadóttir to discuss wage agreements in the general labour market.

The Confederation of Icelandic Enterprise signed an extension of its wage agreement with VR, LÍV and Fagfélögin earlier on Thursday. The deal was reached shortly before 4 p.m., the deadline for terminating the agreements over a failure to meet their conditions.