Government offers tax relief of 6,760 on wages under 900 thousand

Published by Efling on

Today, the government announced its proposals for tax changes, to ease the negotiations for new collective agreements. The emphasis was to be on the lowest wages.

“The negotiations had simply stranded,” says Sólveig Anna Jónsdóttir, head of Efling. “The SA business cartel wasn’t prepared to have a serious discussion about a living wage.” Last week, an offer was made by SA on the one hand and the unions VR, Efling, VLFA and VLFGrv on the other. The offers were far apart and were not considered a basis for further talks. Therefore, a lot was riding on the proposals of the government.

“We had expected something in the neighbourhood of 20 thousand per month,” says Sólveig Anna. “That could have been a basis for actual talks.” The proposals of the government, which were presented to the unions this morning, were nowhere near; tax relief of 6,760 per month for wages up to 900,000.

“I don’t understand why they’re spreading this minuscule cut such a long way up the wage scale,” Sólveig says. “Why do they waste this tiny fiscal space, as they call it, on wages that are much more than sufficient to cover the cost of living? That leaves the large group on low wages with barely anything.”

The negotiations committee of Efling meets tomorrow night, and on Thursday the four unions have a meeting with SA at the state mediator. There, it will be made clear whether talks will be stopped.