A pay adjustment guarantee negotiated for state- and municipal workers

Drífa Snædal, president of ASÍ, signed an agreement yesterday for a pay adjustment guarantee for state- and municipal workers. The wages of the municipal workers from the member unions of ASÍ will increase by an average of 1,7 percent because of the agreement and the wages of the members of ASÍ working for the state will increase by an average of 0,4 percent. The pay adjustment guarantee is retroactive and will be valid from January 1st of 2019. This agreement is a vital step towards insuring that the wage development of state- and municipal workers doesn’t lag behind wage development in the general labor market.The agreement, which was signed today, was based on the framework-agreement between management and labor from October of 2015. The contracting parties are the Icelandic state, the Icelandic Association of Local Authorities (SÍS), the City of Reykjavík, the Icelandic Confederation of Labor (ASÍ), BSRB and the Confederation of Icelandic Enterprise (SA).In the framework agreement it is stipulated that the wage development of those who work for the state and municipalities will not be poorer than in the general labor market. The plan is to thus prevent the wages of public sector workers from lagging behind the general development of wages.The benchmark is wage development from November of 2013 to November of 2018, on the one hand in the general labor market and on the other hand for state- and municipal workers.