The Socialist Party will be a workers' party

The Executive Board (Framkvæmdastjórn) of the Socialist Party of Iceland will submit the following proposal for approval to the party's general meeting on Saturday, January 19:

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 towards 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 towards 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 Starfsgreinasambandið towards the authorities and incorporated them into its policy.Starfsgreinasambandið is the largest association of workers within Alþýðusambandið. Its demands have been approved by associations totaling nearly sixty thousand members. The demands of Verslunarmannasambandið and VR (approximately 35 thousand additional people) towards the authorities are today almost identical to the demands of Starfsgreinasambandið. Furthermore, it can be expected that other associations and organizations within Alþýðusambandið will endorse these demands. By incorporating the demands of Starfsgreinasambandið towards the authorities into its policy, the Socialist Party of Iceland is thus making the demands of 135 thousand workers its own.The demands of Starfsgreinasambandið 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 ordinary people.

The proposal refers to the demands of Starfsgreinasambandið towards the authorities in connection with collective agreements in the general labor market which expired on December 31, 2018. These demands are as follows:

DEMANDS OF STARFSGREINASAMBANDIÐ TOWARDS THE AUTHORITIES

The wage increases agreed upon in recent years have had very uneven effects on 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 Starfsgreinasamband Íslands that the authorities take responsibility for improved conditions through a revision of the tax and benefit system and a major initiative in housing affairs. Tens of thousands of members have participated in formulating the 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 be progressively reduced 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 be more similar to what is customary in the other Nordic countries. The agreed personal tax credit must follow wage developments so that the income-equalizing effects of the tax and benefit system do not steadily diminish, as happened in recent decades.

Capital owners shall not be exempt from responsibility, and capital gains tax shall be raised in line with what is customary in the other Nordic countries. Capital owners shall also not be exempt from paying municipal taxes. Furthermore, property tax needs to be revised so that it does not drastically change with market increases in residential property prices and thereby become 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. Options for financing 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 planning. Wage earners shall be granted increased authorization to allocate supplementary pension savings for real estate purchases and the repayment of real estate loans. 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, but other solutions that can support Bjarg's goals through other revenue streams shall also be explored. 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 enshrined in law. The scope of laws on housing cooperatives needs to be expanded so that the laws cover more forms of associations than currently; housing cooperatives can 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 the credit assessment of lending institutions to what people have been able to pay in rent in the same year as the tax return submitted for the credit assessment refers to. 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 apply 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 effects of reductions for old-age pensioners and disabled people in the social security system need to be significantly reduced. The state's encroachment on the funds that working people have built up over time to improve their living standards shall cease so that they 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 rates here that are 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 permitted for one parent to utilize the entire right if the other parent is completely prevented 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 reasons.

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 operated 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 have to seek services far from their hometowns, incurring loss of work and travel costs, due to rationalization at 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 a license is granted to establish and operate a company. The education system needs to be strengthened in light of changes in the labor market, including strengthening vocational and occupational training and ensuring funding for continuing education centers and Fræðslusjóður.

Illegal Activities in the Labor MarketThe legal framework to address illegal activities in the labor market needs to be strengthened, and breaches of collective agreements shall be clearly criminalized, and fines legally established for such breaches. 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 competent public institutions need to be established if companies must be closed due to serious violations of staff rights.

Workplace supervision by trade unions shall be strengthened, and regular and greatly enhanced cooperation between trade unions and Vinnueftirlit ríkisins, Vinnumálastofnun, Ríkisskattstjóri, the police, the health inspectorate, and other supervisory bodies shall be established regarding violations against staff concerning wage payments, working conditions, and housing.

Vinnumálastofnun and Vinnueftirlit ríkisins 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 kennitöluflakk.

OtherResidential disparities need to be rectified through improved transport, equalization of housing costs, and more.

Flexibility in retirement needs to be increased so that it becomes a truly viable option to reduce work and retire earlier or later from the labor market, whichever suits people. People who perform physically or mentally demanding work shall be given the option to retire earlier than otherwise.

Jafnréttisstofa (the Directorate of Equality) 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.

Socialist Meeting

The general meeting will be at Dósaverksmiðjan, Borgartún 1, and starts at one o'clock. See event on Facebook:Socialist Meeting on Þorri– The photo is from the Socialist Congress (Sósíalistaþing) 2018