Sólveig Anna Jónsdóttir, chairman of Efling Union, has sent a letter to the franchisees of the restaurant chains Subway IP LLC and Hard Rock Cafe International. The letter draws the attention of the parent companies to the participation of their franchisees in this country in rights violations against working people, illegal activities, and violations of the law.
In the letter, Sólveig Anna points out that Stjarnan ehf, which holds the franchise for Subway in Iceland, and HRC Ísland ehf, which holds the franchise for Hard Rock Cafe in Iceland, have both probably participated in the establishment of an illegal pseudo-union, which is controlled by employers. Sólveig Anna points out that both companies are members of SVEIT, an association of companies in the restaurant market, which has made an illegal collective agreement with the pseudo-union Virðing.
Efling has repeatedly pointed out that Virðing is a pseudo-union, founded by company owners. The founding members and board members of Virðing are thus restaurant owners or people with close ties to restaurant owners, and people closely connected to the board of SVEIT. Efling has also published a detailed comparison of the pseudo-collective agreement between SVEIT and Virðing on the one hand and between Efling and the Confederation of Icelandic Enterprises on the other. It points out that not only does the pseudo-collective agreement contain much worse terms for employees, but it also contains numerous provisions that violate Icelandic law and European regulations.
In Sólveig Anna’s letters to the international restaurant chains, she underlines that the actions of SVEIT and Virðing have been condemned by the entire labor movement in Iceland. Not only does it undermine the rights of employees but also damages the reputation of the mother companies. “While Efling recognizes that franchisees operate as independent entities under your brand, the relationship means that their actions could reflect negatively on your global reputation.”
In the letters, Sólveig Anna requests that Subway IP LLC and Hard Rock Cafe International investigate the conduct of Stjörnunn ehf. and HRC Íslands ehf., to “ensure that all franchisees operating under your brand comply with applicable labor laws, as well as any ethical practices related to the company.”