Summary of the new agreements
A new collective agreement for private market workers in Efling has been signed, lasting for 3 years and 8 months. It includes significant input from the government, and adds disposable income from several sources.
It will be effective as of April 1, 2019. A vote on the agreement will take place very soon. Here’s an overview of the main items.
Raises
Wages will rise every year, from April 1, 2019 to the contract’s end in 2022. All wages (regardless of how high they are) will rise by the same amount, but additional raises will go to those who get paid according to wage tables. This ensures that the lowest wages get the highest proportional raise.
General wage raises
All wage groups will receive the following raise each year:
| April 1, 2019 | April 1, 2020 | January 1, 2021 | January 1, 2022 | |
| Raise per month | 17,000 | 18,000 | 15,750 | 17,250 |
Wage tables and minimum wage guarantee
The pay for those in a wage table will rise more than other wages. Those paid according to a table may get a basic pay that is less than the “minimum wage guarantee” (lágmarkstekjutrygging) which was 300.000 in the old contract. Premiums and bonuses can be used to lift them up to the minimum wage guarantee. With the new contract, both the wage categories and the minum wage guarantee will rise.
| April 1, 2019 | April 1, 2020 | January 1, 2021 | January 1, 2022 | |
| Raise per month | 17,000 | 24,000 | 24,000 | 25,000 |
| Minimum wage gurantee | 317,000 | 335,000 | 351,000 | 368,000 |
One-time bonus
If and when the agreements are accepted by the membership, and come into effect, a one-time lump sum of 26,000 will be paid out. This is to compensate for the several months of no raises since the last agreement expired.
December bonus
Last year, the December bonus was 89,000 for a full-time job. These are the amounts for the next years:
| 2019 | 2020 | 2021 | 2022 | |
| December bonus | 92,000 | 94,000 | 96,000 | 98,000 |
Growth-linked raises
The monthly pay will get an additional raise, dependent on GDP-growth. If the economy grows by a specified amount in 2020, then wages rise as of May, 2021. This is repeated for the following years of the agreement. Those paid according to a wage table, who have lower basic pay now, will get a higher raise than others, for the reasons stated above.
Growth rates and the raises they will give are the following:
| GDP growth per capita | Monthly raise for wage tables | Monthly raise for others |
| 1,00-1,50% | 3,000 | 2,250 |
| 1,51-2,50% | 5,500 | 4,125 |
| 2,01-2,50% | 8,000 | 6,000 |
| 2,51-3,00% | 10,500 | 7,875 |
| >3,00% | 13,000 | 9,750 |
Holiday bonus
Last year, the holiday bonus was 48,000 for a full-time job. These are the amounts for the next years:
| 2019 | 2020 | 2021 | 2022 | |
| Holiday bonus | 50,000 | 51,000 | 52,000 | 53,000 |
Purchasing power
The agreements have a precondition, that will be reviewed in September of 2020 and 2021, that the purchasing power of wages should increase. If they don’t, the agreements can be invalidated.
Governmental promises
The government has made a promise of several measures to improve conditions. The agreements can be made invalid if these promises are not kept. An evaluation will be performed in September of 2020 and 2021.
Tax relief
The government has promised to reduce taxes on low wages by 10,000 before the end of the agreement.
Parental leave
Parental leave will be extended from 9 months to 10 months in 2020 and to 12 months in 2021.
Child benefits
Child benefits will only be cut for those earning more than 325,000 a month, starting in 2020.
Housing market
Capital contributions to the housing market will be increased by two billion krónur per year, six billion in total for the years 2020-2022. This should allow for the construction of 1,800 homes in that time period.
Those who have not owned a home in the last five years will be offered an easier entry into the housing market.
Crimes of bosses
Punishments for breaking the collective agreement will be increased.
Interest rates
If the Central Bank does not lower policy rates significantly, the agreement may be voided after review. That review will happen twice, in September of 2020 and 2021. (Lower policy rates are useful to mortgage holders, and lead to lower loan repayment costs.)