Propose a "work ban" on Efling Union

The Board of Directors of the Confederation of Icelandic Enterprise (SA) has unanimously agreed to propose to its member companies to impose a total workban on Efling Union, and a vote on the proposal will begin today.

If it is confirmed, the work ban will take effect a week later, in which case none of the more than 20 thousand people who work by collective bargaining agreements between Efling and SA in the public labor market will be allowed to come into work and they will not be receiving wages or other rights during that time.

That means that all employees belonging to Efling Union, regardless if they are on a strike or not, can be sent home while the strikes are in place. This is SA’s response to the breakdown of negotiations with the union Efling yesterday, with the suspension of Efling’s strikes that resumed last night.

"Complete emergency"

“A work ban is an absolute last resort in labor disputes,” SA CEO Halldór Benjamín Þorbergsson tells Morgunbladid, imploring SA management to mete out such measures in order to minimize the damage caused by strikes.

The SA board consists of  twenty people, representing all the major industries in Iceland.

Halldór Benjamin says the result in Karphúsið is very disappointing, especially as SA have been very accommodating to Efling Union, including a special “Efling deal for Efling people” but to no avail.

Not possible to meet those demands

“Efling’s involuntary demand to receive far more increases than people in similar jobs outside the capital area is unavailable,” says Halldór, adding that Efling has made numerous other demands, which have not been on the table in agreements with any other union with which agreements have been reached in the past.

He says SA cannot go further without scrapping all contracts, which had been concluded “in trust and good faith with all other unions,” but which account for nearly 90% of the public sector’s staff.

Can't get more than everyone else

“There is no reason to believe that one trade union in the capital area will receive far more increases during this time than all other unions in the country.” He reminds us that the brief agreements that have been made with other unions are designed to address inflation and protect public purchasing power without causing unemployment and inflation.

The SA statement noted that the work ban is indefinite until the dispute ends, but that the association will grant waivers from the lockout to socially important projects. Similarly, if the Efling strike is postponed, the lockout will also be postponed.

The vote on the SA Board proposal will begin today at 11 a.m., after a briefing for the participating companies.

SA’s Statement

The SA statement on these latest shipments is below:

“In light of the unsuccessful negotiations in the labour dispute between Efling and the Confederation of Icelandic Enterprise (SA), the association’s board of directors has unanimously agreed to take a vote on a work ban.

Efling’s controversial strikes will be severe for Icelandic society in large part and cause enormous costs. A work ban is an emergency tool for employers in labor disputes to respond to strikes and is intended to minimize the damage that companies suffer as a result of Efling’s actions. A strike ban is similar to a strike and means that no Efling’s members can show up for work and wages are suspended.

Instead of Efling paralysing the activities of certain companies and industries through strikes by a small number of members, the SA will, through a work ban, seek to control the implementation of the work stoppages and increase pressure on Efling to complete the ongoing collective bargaining.

The resilience of the negotiating framework that has been in place has been tested. Efling’s firm demand to receive more increases than people in similar jobs outside the capital area is unfortunately unavailable.

The Confederation of Icelandic Enterprise cannot go further in the without overturning the collective bargaining agreements that have been made with all other unions in the public sector, behind which nearly 90% of the employees in the public sector are employed. There is no reason to believe that one union will receive a much bigger increase in the market at this time than the other. Short bargaining agreements are meant to respond to high inflation and protect the purchasing power of the public without causing unemployment and long inflationary times in Iceland, like those times well remembered by older generations.

As discussions with Efling’s leadership in the last few days have not been successful and Efling has organized and taken strike action that disrupts the entire community, the SA board has agreed to propose a work ban vote on Efling’s members. Voting began on this emergency measure amongst all SA member companies today at 11.00 am following a briefing for members.

If the lockout is adopted by referendum, it will take effect seven days from the date of its notification to Efling and the state mediator and will remain indefinite until an agreement is reached. There will of course be exemptions from the lockout for important activities in the interests of society. The suspension of the strikes will likewise suspend the use of the work ban.