1. Bilateralism in Iceland
CGIL Nazionale
Rome 2nd of July 2019

2. 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

3. 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

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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.

12. Equal pay standard The newest project
Negotiated in collective agreement in 2008
The standard was published in 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

13. 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

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

15. Thank you
Drífa Snædal
President of the Icelandi Confederation of Labour - ASÍ