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Conclusion of the policy group (málefnahópur) on labor market affairs

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May 16, 2019

Conclusion of the policy group (málefnahópur) on labor market affairs


The policy of the Socialist Party of Iceland on labor market affairs is:

  • That human value, dignity, and safety are ensured in the labor market with decent terms and working conditions.
  • That the basic rate of minimum wages and tax-free thresholds are never below the official subsistence level.
  • That the state and municipalities are not leading in low-wage policy.
  • That the gap between the highest and lowest wages will be reduced.
  • That the outsourcing of jobs in the public sector will cease.
  • That equality is ensured in the labor market and that different groups enjoy the same terms for the same work.
  • That special care is taken to ensure that foreign staff enjoy the same terms and rights as Icelandic staff and have good access to information on labor legislation and collective agreements.
  • That a clear action plan is initiated when human trafficking is discovered, and that particular attention is paid to ensuring that staffing agencies comply with laws and regulations, or face penalties.
  • That an undue connection between employer and landlord will be prevented.
  • That corporate shell games and wage theft are prevented with robust legislation and penalties.
  • That employment does not reduce the subsistence of pensioners or others who rely on income from the public sector.
  • That the demands of ÖBÍ are supported, that work capacity assessments are rejected, and that the króna-for-króna reduction for pensioners is abolished.
  • That parental leave will be extended to 18 months.
  • That increased democracy in workplaces is promoted.
  • That the establishment of cooperatives in the form of democratic enterprises owned by staff is promoted.
  • That a more human-friendly society is fostered with a 32-hour work week.
  • That democracy in trade unions is safeguarded.

Further reading:

The Socialist Party of Iceland is the political party of the working class and supports its interests. People shall enjoy respect, decent terms, good working conditions, and safety at the workplace. The strength of wage earners lies in their unity through strong labor and trade unions.

Labor market parties, public or private, shall always use recognized official subsistence as a benchmark for the lowest basic rates. Tax-free thresholds shall be raised so that the lowest wages are never taxed. Low wages harm society as they place an enormous burden on low-wage earners, often resulting in them dropping out of the labor market prematurely. Therefore, the lowest wages shall be raised, and at the same time, the aim is that the highest wages in the state and municipalities will be at most triple those. Furthermore, the incentive to pay excessive wages will be reduced through the tax system and legislation.

The state and municipalities shall be prevented from outsourcing certain job areas (e.g., cleaning and catering) within their workplaces and shall instead hire long-term staff to perform these tasks under the same terms and with the same rights as other public employees.

Furthermore, equality in workplaces shall be ensured, and it shall be guaranteed that people's rights are not violated based on gender, origin, religion, disability, or age.

A policy shall be formulated on how to receive foreign staff so that they know their rights and obligations, and that the societal infrastructure can accommodate them, e.g., regarding housing, welfare services, workplace supervision, and Icelandic language teaching. Furthermore, it shall be monitored that foreign staff unfamiliar with the Icelandic labor market are not automatically placed on the lowest rate and that their education and experience are not valued for wages. Clear rules on volunteer work shall also be established so that it does not undermine the wage struggle of employees.

The labor movement, in cooperation with authorities and employers, shall ensure that all information on collective agreements is accessible in various languages and that people, whether Icelandic or foreign, youth or disabled staff, are better protected from being exploited by employers. Furthermore, people shall have ownership of their work contribution, and laws restricting the general right to strike shall be abolished.

Pensioners and others who wish and are able to work part-time should not face worse terms for their work contribution, neither in the form of wages nor króna-for-króna reductions, to prevent people from falling into a poverty trap. Furthermore, work shall be done to eradicate disability prejudice in workplaces and to address accessibility issues more firmly.

Staff involvement in company decision-making must be increased, and they must be given an increased share in their profits. Efforts shall be made to ensure that staff have representatives on the board of their workplaces, and the establishment of cooperatives in the form of democratic enterprises owned by staff shall be pursued. In the event of a change of ownership or bankruptcy of companies, staff shall always have a pre-emptive right to them.

The establishment of democratic enterprises shall be facilitated, inter alia, with tax incentives and favorable operating loans. Joint-stock companies shall also be given the option to convert into cooperatives and then gain access to the same incentives and loans. For the establishment of cooperatives, only two founding members are required.

Democracy in trade unions shall be safeguarded, inter alia, with provisions on maximum terms for board and committee membership and by strengthening member activity.

Pension fund boards shall always be composed of fund members who pay or have paid into them and earned rights, and no one else.

Conclusion of the policy group (málefnahópur) on labor market affairs | The Socialist Party