Bilateralism in Iceland CGIL Nazionale Rome 2nd of July 2019

The culture Strong culture of tripartism (tripartite collaboration) and negotiations between employers and employees The Social Partners (Trade Unions and Employers Federations) cover “all” sectors and industries of the Icelandic economy Union density over 86% Collective agreements cover all sectors, industries and virtually all jobs on the Icelandic labour market

The Icelandic labour market 80,5% labour market participation 77,3% labour market participation among women 83,5% labour market participation among men Unemployment 3,6% - the highest unemployment rate in many years

The groundwork The Social Partners are recognised by the state and the society at large as representing the interests of workers and companies on the labour market, in the economy and on all other issues concerning these groups - Icelandic Confederation of Labour (ASI) 60% of labour market - Business Iceland (SA) 70% of labour market

Important observations The Trade unions cover all industries and sectors on the Icelandic labour market The right to make collective agreements is in the hands of the individual (local) trade unions – by law The individual unions can (and in most cases do) hand the right to bargain over to the national federations ASI most often represents the affiliated federations and unions in dialogue and negotiations with the employers confederation (SA) on the general framework for increase in wages (based on aims for real-wages) and general provisions (differ from one time to the next) With the government on employment, economic and welfare matters, social provisions and labour market rights ASI is recognised by the government and the society at large as representative of workers in Iceland

Focus on cooperation Pension fund Sickness fund Holiday fund Educational fund Rehabilitation fund If something comes up on the job you, you get sick need rehabilitation or you need to strengten your position on the labour market your first stop is your trade union Cooperation in matters of gender equality, social dumping,training, occupational health etc.

Pension fund Dates back to 1969 when it was part of collective agreement to establish a mandatory participation of all workers in pension funds. Now, employers pay 11,5% of wages into the funds and employees pay 4%. In addition workers can choose to pay 4% and employers then pay 2% into individual pension funds. The board of the pension funds consists of 50/50 employers and employees Always under criticism but consensus about having a pension system

Sickness fund Dates from 1974, before that time, many individual unions had negotiated sickness funds in collective agreements Employers pay 1% of wages into the sickness funds The sickness fund takes over when the rights to sickness pay from the employer has been used Guaranteed 4 months at 80% of wages in case of long term sickness Guaranteed 3 months at 80% of wages in case of long term sickness of child or spouse Prevention subsidy for training, canser scan etc. The workers union have all seats in the board of sickness funds

Holiday fund Dates back to 1940s Employer pay 0,25% of wages into the holiday fund The unions build holiday houses and rent holiday flats abroad for their members In some cases they subsidize domestic flight and road tolls The unions hold every seat on the board of holiday funds

Educational fund Legislation from 1980 as a result of negotiation in collective agreement Employers pay 0,15% of wages to the educational funds The aim is to help workers in lifelong learning, both through formal education and individual courses, many of which are provided through unions Employers and workers both have a seat on the board of educational funds

Rehabilitation fund The newes addition to joint funds – founded in 2008 through collective agreement One centralized fund in cooperation between employers and employees Legislated in 2012 Employers pay 0,39% of wages into the rehabilitation fund People who are not active within the labour market due to long time sickness can get rehabilitation from a professional team of councellors, doctors, psychiatrists, physiotherapists etc.

Equal pay standard The newest project Negotiated in collective agreement in 2008 The standard was published in 2012 and companies can get a certification for closing the gender pay gap Legislated in 2017, shall be implemented in all companies with 25 or more employees before 31st of December 2019 No specific fund og budget, the companies bair the cost

Critisism The interests of employers and employees are too intergrated through the funds – makes it hard to critizise the structure Pension funds are getting too big and dominate the financial market Makes unions vulnerable for critisism Employers have too much influence on the quality of workers lifes Unions are taking to much responsibility on the welfaresystem

Finally Not a perfect system but in all it has worked to increase the living standard in Iceland

Thank you Drífa Snædal President of the Icelandi Confederation of Labour - ASÍ drifa@asi.is