MAGNA lawyers have sent a letter to the CEO of Kringlan on behalf of the Efling Union, drawing attention to the fact that at least one operator at Kringlan is violating its employees. The letter refers to the fact that the representative of the restaurant Finnsson Bistro has declared that the restaurant’s employees must follow the illegal collective agreement of the pseudo-union Virðing with SVEIT, an association of companies in the restaurant market. The letter calls on Kringlan to act.
The letter from MAGNA lawyers refers to public discussion of the issues of the pseudo-union Virðingar. This is an association established on the initiative of employers, to protect their interests and not those of workers. Therefore, Virðing is not considered a union within the meaning of the law, and agreements made within its framework are not regarded as collective agreements and hence do not have legal effect.
The so-called collective agreement of the pseudo-union includes poorer terms and fewer rights in all respects than the current collective agreement of Efling and the Confederation of Icelandic Enterprises. Therefore, companies that take advantage of the illegal agreement pay wages below the minimum wage. In addition, the agreement contains provisions contrary to the provisions of the law, including the law on the 40-hour workweek, the law on equal treatment in the labor market, and the principle of equality in the constitution.
As mentioned above, Finnsson Bistro’s representative has publicly stated that the employees will be required to receive wages according to the illegal agreement. This means that employees are paid lower wages than the law allows and their rights are violated.
“Kringlan must demand that the activities conducted in Kringlan are per the law. Legal activities include, among other things, that stores and restaurants respect the general rules of the labor market in their operations. Efling expects Kringlan to respond if it is informed that a company in Kringlan is violating the rights of employees who work there,” says the letter from MAGNA lawyers.
Kringlan is called upon to respond to the conduct of the Finnsson Bistro operator and to act. Furthermore, it is requested that MAGNA lawyers, on behalf of Efling, be informed of the response to the report no later than January 31st.