Statement by Efling, ASÍ, and SGS condemning unethical conduct towards cleaning workers.
Trade unions across the country received reports in the autumn of 2024 that the company Dagar hf., which has almost half of the cleaning market share, was reducing its employees’ wages by 20%. In the following months, news came that more companies had and are playing the same game. A major and long-overdue discussion began about the work and conditions of cleaning workers. But what are the facts of the case? What is it all about?
Collective agreement negotiation – negotiated increases
When negotiating collective agreements last year, there was a unanimous opinion among the Federation of General and Special Workers in Iceland (SGS), Efling, and the Confederation of Icelandic Employers (SA) to improve the wages of cleaning workers. It was decided that this group would receive an increase of two wage brackets, in addition to a monthly cleaning bonus of ISK 19,500. or an increase of 11.9% after the cleaning increase came into effect on August 1. Thus, it was agreed to increase the then-existing wages specifically, as there was a consensus that better work needed to be done for this group, which performs extremely difficult basic work for the benefit of society. Without cleaning workers, healthcare institutions, nursing homes, schools, and so on could not be kept open for a long time.
As has been stated many times, it is the clear position of ASÍ, SGS, and Efling that the wage reduction being discussed here is not a reduction in wages above the minimum rate but, as has been argued, a reduction in collective bargaining wages. It is therefore sad to see the Confederation of Icelandic Employers accept and support the decision of the company managers to reduce wages to achieve increased efficiency in operations. This efficiency was decided while the same parties were sitting at the negotiating table and promising reforms and an increase in the minimum wage. There was no desire among these companies, which together have an overwhelming workforce in the industry, to work on the joint project that was set out in the collective agreements. Such working practices involve a serious breach of trust.
What is time-measured piecework?
Time-measured piecework is the arrangement in which an employee is paid for certain projects based on an estimated number of hours. The project is thus measured and the total time that such a project will take is determined. The general speed is based on 100 per work cycle or 100 m2 per hour. In the general labor market, it has been agreed to pay for a work speed of 130, or 130 m2 per hour. The calculation takes into account the frequency of cleaning, flooring, square footage, type of space, and all obstacles that slow down cleaning performance. For faster work than is generally expected, a 12% higher salary has been negotiated, in addition to an 8% higher salary for taking fewer breaks.
The parties’ collective agreement makes strong demands for transparency in terms of working conditions, work speed, and wages. As has been reported in the news, numerous companies have ignored the collective agreement-based rights and obligations that apply to cleaning jobs. In this way, they have used their superior position towards employees
Lied to employees?
There are employment contracts from Dagar hf. from 2023 and 2024 where it is clearly stated that people are hired for time-measured piecework. After the collective agreement was concluded in the spring of 2024, employees in time-measured piecework were required to take a wage reduction equal to the 20% that arose due to the piecework. Employees are told that they have been overpaid despite no such indication, as employees were hired clearly on a piecework basis and there was no relaxation in the requirements for work speed, on the contrary. It is also clear that work arrangements were not changed after the wage terms had been changed.
Brief and unclear explanations were given and people were handed a document titled an agreement. The agreement in question does not stipulate a change in the working environment.
The key point here is to put yourself in the shoes of employees from 40 nationalities with varying lengths of residence and experience in the Icelandic labor market. The unions have received descriptions of events and the experiences of employees and it is clear that this is a dark scenario. After the satisfaction of a special wage increase after the last collective agreement, the journey described here and under discussion has begun. The people who welcomed higher wages are now saying goodbye to that increase and accepting even further wage cuts. Today, we are left with lower wages than before the collective agreements!
Outsourcing and unethical savings
The outsourcing journey that began at the turn of the century has come to a complete standstill. The state and local governments have given the outsourcing of jobs a focused leadership. The reason is always the same: a demand for savings in the operation of the state and local governments. And where is the choice to drive the savings? Yes, in the ranks of women who have the lowest wages and do the most difficult jobs!
Bids are sought through public tenders, where the lowest is usually accepted. Private and profit-driven businesses take over, seeking every way to provide services at the lowest cost.
The vast majority of union wage claims for unpaid wages are on behalf of immigrants, and no other conclusion can be reached than many employers take for granted take advantage of their superior position towards these immigrant workers.
It is unbelievable that the state and local governments will take the lead in creating the conditions for such abuse.
Let us recall that special laws apply to public procurement with the aim of “ensuring equality between companies, promoting efficiency in public operations through active competition and promoting innovation and development in public procurement of goods, works and services.”
There are two things to be found in the aforementioned law on the responsibility of tenders towards workers: The buyer is permitted to reject a bid if, among other things, the bidder does not guarantee collective bargaining rights or other social rights. The buyer is also permitted to secure the supply chain and assume responsibility if collective bargaining rights are not respected by the person selling the service. It is disappointing that this is optional in Icelandic law when public funds are available, but it must nevertheless rest with the government to ensure the rights of the people who work in their chain. It is even more disappointing when the government chooses not to use the authority in question.
Immediate corrections!
We, the undersigned, condemn the actions of Dagar and other companies that have decided to further increase their profits by exploiting the groups of workers who can be said to be in the most difficult situation in this country.
We demand that these companies immediately resume payments per the collective agreements.
At the same time, we condemn the complete apathy that characterizes the actions of state and local government officials and draw attention to the blatant hypocrisy that characterizes these people’s arguments about recognition and respect for the work of others. We demand that if companies do not change their behavior, local governments and the state intervene with actions that they are morally obligated to take.
Undersigned,
Finnbjörn A. Hermannsson, forseti Alþýðusambands Íslands (ASÍ)
Vilhjálmur Birgisson, formaður Starfsgreinasambands Íslands (SGS)
Sólveig Anna Jónsdóttir, formaður Eflingar stéttarfélags