News
January 19, 2019The Socialist Party is a workers' party
A general meeting of the Socialist Party of Iceland, held on January 19, 2019, approved incorporating the demands of the Federation of General and Speciality Workers (Starfsgreinasambandið) towards the authorities into the party's policy. With this approval, it is reiterated what is stated in the party's policy that the Socialist Party is a party of wage earners in Iceland.
The resolution of the general meeting is as follows:
THE SOCIALIST PARTY IS A WORKERS' PARTYThe Socialist Party of Iceland is a party of wage earners and supports the struggle of the working class for improved conditions and a just society. The demands of the working class must be formulated democratically within trade unions. This expresses the will of the public, which both the party and the movement rally behind. It is the role of the labor movement to push through the demands of the working class against companies and other employers. But it is the common role of the movement and the party to press for the demands of the working class against the state and the public sector. For these reasons, the Socialist Party of Iceland has adopted the demands of the members of the trade unions that form the Federation of General and Speciality Workers towards the authorities and incorporated them into its policy.The Federation of General and Speciality Workers is the largest association of workers within the Icelandic Confederation of Labour (Alþýðusamband Íslands). Its demands have been approved by associations totaling nearly sixty thousand members. The demands of the Federation of Commercial and Office Workers (Verslunarmannasambandið) and VR (an additional 35 thousand people) towards the authorities are today almost identical to the demands of the Federation of General and Speciality Workers. In addition, it can be expected that other associations and organizations within the Icelandic Confederation of Labour will endorse these demands. By incorporating the demands of the Federation of General and Speciality Workers towards the authorities into its policy, the Socialist Party of Iceland is therefore making the demands of 135 thousand workers its own.The demands of the Federation of General and Speciality Workers are added to the policy of the Socialist Party. The policy that randomly selected groups of members have formulated in specific policy areas is still in effect. In all cases, this policy is a natural addition to the demands of workers, and in many cases, the policies are the same, as both the party's policy and the movement's demands are shaped by the experience and expectations of the common people.
According to this resolution, the demands of the Federation of General and Speciality Workers towards the authorities will be incorporated into the policy of the Socialist Party of Iceland. The demands are as follows:
DEMANDS OF THE FEDERATION OF GENERAL AND SPECIALITY WORKERS TOWARDS THE AUTHORITIES
The wage increases agreed upon in recent years have been distributed very unevenly among wage earners in Iceland. The equalizing effects of the tax and benefit system have significantly diminished, and housing costs have skyrocketed. These changes have, in all respects, disproportionately affected low-wage earners more heavily than others. It is therefore an unequivocal demand of members within the member associations of the Federation of General and Speciality Workers that the authorities take responsibility for improved conditions by revising the tax and benefit system and launching a major initiative in housing affairs. Tens of thousands of members have participated in formulating these demands, and it is a unanimous opinion that the focus should be on the authorities in upcoming wage negotiations.
TaxesThe lowest wages shall be tax-free with a doubling of the personal tax credit, which will then gradually decrease with higher incomes, so that tax reductions for low- and middle-income groups will, among other things, be financed by a higher tax contribution from the highest earners. The income tax system's burden on lower and higher income groups will thereby become more similar to what is customary in the other Nordic countries. The agreed-upon personal tax credit must follow wage developments so that the income-equalizing effects of the tax and benefit system do not steadily diminish, as has happened in recent decades.
Capital owners shall not be exempt from responsibility, and capital gains tax shall be raised to align with what is customary in the other Nordic countries. Capital owners shall also not be exempt from paying local income tax. Furthermore, property tax needs to be revised so that it does not skyrocket with market increases in residential housing prices, thereby becoming unduly burdensome for ordinary wage earners who have managed to finance their home purchases. Such a fundamental change in circumstances is intolerable.
Housing AffairsA national initiative in housing affairs shall be launched, comparable in scope and impact to the former workers' housing system. A joint effort by the state, municipalities, and pension funds shall be undertaken to make this a reality. Implementations that provide for the financing of the workers' housing system through direct state contributions (e.g., initial contributions from Íbúðalánasjóður), through a special premium paid by employers, through investment by pension funds, or a combination of all these methods shall be explored. The possibility of negotiating the reallocation of already agreed-upon increases in pension fund contributions for housing development shall be considered. Municipalities shall contribute by providing land and giving the project special priority in urban planning. Wage earners shall receive increased authorization to allocate supplementary pension savings for real estate purchases and mortgage repayments. It shall be ensured that initial contributions benefit the entire country and that Bjarg and other social housing associations build apartments nationwide.
The work already done within Bjarg shall be utilized, and other implementations that can support Bjarg's goals through other revenue streams shall also be examined. The goal shall be to ensure at least 1250 new apartments per year, and that middle-income groups and manual and low-wage workers with significant overtime income have access to housing created in such an initiative. The possibility of pension funds contributing purposefully to housing development shall be considered.
Changes shall be made to the legal framework of the rental market to limit short-term rental of residential housing for tourism. Rent increases and deposits paid by tenants shall be clearly limited. Rental agreements shall generally be long-term, and fixed public contributions to tenant interest groups shall be legally mandated. The scope of laws on housing cooperatives needs to be expanded so that the laws cover more forms of associations than currently; housing cooperatives shall be able to operate in the rental market and apply for initial contributions from the state. Laws on general housing shall be adapted to more diverse forms of rental associations.
Loan assessments need to be aligned with repayment capacity. Full consideration shall be given in loan institutions' payment assessments to what people have been able to pay in rent in the same year as the tax return used for the payment assessment. Equality between regions shall be ensured in this regard. The problems of people in rural areas regarding housing need to be specifically addressed, among other things, by increasing the supply of affordable housing, especially for those living in so-called cold areas. It shall be ensured that those buying their first home receive increased assistance.
Housing support (housing and interest benefits) shall be greatly strengthened. Reductions due to income and assets shall be decreased.
Social Security and BenefitsChild benefits shall be increased and reductions decreased so that reductions do not take effect below minimum income levels, and reduction thresholds then follow wage developments. Furthermore, interest and housing benefits need to be increased, and reductions due to income and assets decreased.
It is emphasized that disabled people and the elderly shall enjoy the same wage increases as wage earners in the general labor market. The impact of reductions for old-age pensioners and disabled people in the social security system needs to be significantly reduced. The public sector's encroachment on the funds that working people have built up over time to improve their living standards shall cease, so that these funds do not subsidize social services and basic pillars that should be the responsibility of the public sector.
Interest and IndexationIndexation on consumer loans shall be abolished, while simultaneously preventing borrowing costs from being shifted back to borrowers through other means. The housing component shall be removed from laws on interest and indexation. The Central Bank shall contribute to lowering policy rates, and a cap shall be placed on housing interest rates with the aim of achieving interest terms comparable to those customary in neighboring countries.
Parental LeaveParental leave for both parents shall be extended to a total of up to 18-24 months to bridge the gap between parental leave and preschool and to provide a better life for families with children. It shall be permissible for one parent to utilize the entire right if the other parent is completely excluded from doing so, e.g., due to death, assisted reproduction, exclusion from residency, or if a parent is unable to be present due to other unavoidable causes.
Welfare AffairsHealthcare services must be accessible to all, regardless of economic status and residence. A clear healthcare policy needs to be formulated, and healthcare services shall be run by the public sector and not subject to market forces. Public co-payment in the healthcare system is extremely burdensome for lower-paid people, and especially for people outside the capital region who need to seek services far from their hometown, incurring loss of work and travel costs, due to rationalization in state institutions in recent decades. Public co-payment in the healthcare system must be significantly reduced, and the office of a patient ombudsman established. The number of nursing beds needs to be increased nationwide.
Educational AffairsEducation on rights and obligations in the labor market needs to be greatly increased and incorporated into the core curriculum of primary and secondary schools. Furthermore, a requirement for employers' minimum knowledge of wage matters needs to be established before permission is granted to establish and operate a company. The education system needs to be strengthened in light of changes in the labor market, including reinforcing vocational and occupational training and ensuring funding for continuing education centers and the Education Fund (Fræðslusjóður).
Illegal Activities in the Labor MarketThe legal framework for addressing illegal activities in the labor market needs to be strengthened, and breaches of collective agreements shall be clearly criminalized, with fines legally established for such violations. The powers of trade unions to collect data in companies and their authority to impose fines need to be increased. Clear communication procedures between trade unions and relevant public institutions need to be established if companies must be closed due to serious violations of employees' rights.
Workplace supervision by trade unions shall be strengthened, and regular and greatly enhanced cooperation between trade unions and the Administration of Occupational Safety and Health (Vinnueftirlit ríkisins), the Directorate of Labour (Vinnumálastofnun), the Director of Internal Revenue (Ríkisskattstjóri), the police, the health inspectorate, and other supervisory bodies shall be established regarding violations against employees concerning wage payments, working conditions, and housing.
The Directorate of Labour and the Administration of Occupational Safety and Health shall be merged into one powerful institution with sufficient funding to carry out its supervisory role. Oversight from the authorities towards those institutions legally responsible for supervising illegal activities in the labor market needs to be increased.
International conventions regarding human trafficking shall be respected, and an action plan confirmed and funded.
Identity number hopping (kennitöluflakk) shall be addressed clearly and responsibly with the aim of stopping identity number hopping.
OtherResidential disparities need to be rectified through improved transport, equalization of housing costs, and more.
The flexibility of retirement needs to be increased so that it becomes a truly viable option to reduce work and leave the labor market earlier or later, whichever suits individuals. People who perform physically or mentally demanding work shall be given the option to retire earlier than otherwise.
The Centre for Gender Equality (Jafnréttisstofa) shall be strengthened, and funding ensured to enforce laws on equal pay certification, including supervision. Discrimination based on nationality, country of origin, or language shall be included in equal pay certification.
Access for asylum seekers to the labor market shall be improved.