The Confederation of Restaurant Businesses (SVEIT) and the pseudo-union Virðing have drafted a new so-called collective agreement between them. Despite some changes from the previous agreement, the new contract remains unfavorable for the vast majority of workers in the restaurant sector. Efling strongly urges its members to reach out for support if employers attempt to pressure them into accepting this agreement. That can be done by the form found here.
As Efling has previously pointed out, the former agreement between these parties was incompatible with Icelandic law and international commitments that Iceland has undertaken. While the new contract has addressed some of these legal violations, many rights remain significantly weaker than those guaranteed by the existing and lawful collective agreement between Efling and the Confederation of Icelandic Enterprise (SA).
Regular Working Hours Extended by Three Hours
One of the most significant issues is that despite the slightly higher base wage rate in the new SVEIT–Virðing agreement compared to Efling’s agreement with SA, overall earnings for most restaurant workers will be significantly lower. This is because regular working hours have been extended by three hours per day.
Under the agreement, the hours between 17:00 and 20:00 are considered regular working hours, meaning that employees working during this period only receive standard wages. In contrast, under Efling’s agreement with SA, these hours are classified as overtime and paid accordingly. Additionally, the premium rates for evening and weekend work are lower in the SVEIT–Virðing agreement than in Efling’s contract with SA.
Wage Losses Amounting to Tens of Thousands of ISK
SVEIT itself has stated that 56% of restaurant employees’ working hours take place outside of regular hours. The new agreement, therefore, results in wage reductions for those who work more evening and weekend shifts, disproportionately affecting part-time workers.
Efling’s calculations highlight these losses. A 22-year-old entry-level restaurant worker earns ISK 41,507 more under the Efling–SA agreement than they would under the SVEIT–Virðing agreement. As of April 1, this difference will increase to ISK 45,081. These calculations assume the employee follows a common rolling shift schedule, which includes work until 22:00 on most evenings and four weekend shifts per month, totaling 171 working hours per month. A detailed breakdown of these calculations can be found at the bottom of this article.
An Unlawful Agreement
Efling reiterates its stance regarding SVEIT and the pseudo-union Virðing’s attempts to undermine restaurant workers’ wages and working conditions. Virðing is not a legitimate trade union but rather an extension of employer interests. The organization was established at the initiative of restaurant owners, by restaurant owners themselves, or by individuals closely affiliated with them.
As a result, the agreement between SVEIT and Virðing is not a genuine collective agreement but a unilateral act by employers. It is therefore unlawful and constitutes illegal collusion.
Efling urges its members, as well as all restaurant workers, to report if their employer is enforcing this illegal agreement. Reports can be submitted via the form available here, by emailing vinnurettindi@efling.is, or by calling 510-7500.
Efling’s staff is ready and available to provide guidance and assistance to ensure that workers can claim their rightful protections under the legally binding collective agreement between Efling and SA, rather than being forced into an unlawful pseudo-agreement.