News - 29.01.2025

Fjarðabyggð Against Collective Agreements

Nearly a year ago, long-term collective agreements were signed in the general labor market, where employees accepted moderate wage increases during a period of inflation in exchange for employers refraining from price increases and the public sector holding back on fee increases. The hope was that this would create conditions for lower inflation and interest rate reductions, thereby protecting the purchasing power of employees.

Up to a 62% Increase in Preschool Fees

For municipalities, a maximum increase of 3.5% in fees was agreed upon, with particular emphasis on protecting families with children and individuals in vulnerable situations. It is certainly a challenge for many municipalities to restrain fee increases, and some have attempted to stretch beyond the agreed framework. However, the increase in preschool fees announced by Fjarðabyggð stands out. If the municipal authorities do not reverse their plans, employees with children in preschool in the municipality will have to bear a 24–62% increase in preschool fees, depending on the length of childcare hours.

At a meeting between AFL, VR, the municipal executive council, and the mayor of Fjarðabyggð on 27 January, it became clear that these changes are intended to address the staffing shortage in preschools by reducing the number of hours and days children can attend. Reference was made to a "financial incentive" for parents who can have their children in preschool for shorter periods. However, in reality, this is a financial penalty for parents who work full-time and require preschool services accordingly.

In addition to six staff development days and twenty mandatory summer vacation days, parents are now expected to pay an extra fee for an additional twenty "registration days." This amounts to 46 days per year in total. It is important to note that young employees in the general labor market typically have only 24 vacation days per year. Furthermore, employees in the general labor market usually return from parental leave without any accrued vacation rights, as vacation entitlement accumulation stops during parental leave. This puts both significant financial and emotional pressure on parents of young children.

Fjarðabyggð Must Reconsider Its Decision

It is clear that in making this decision, Fjarðabyggð has neither considered the existing collective agreements nor the impact this policy will have on employees and society as a whole. Financial burdens are thoughtlessly being shifted onto the shoulders of parents with young children, without any consideration of the consequences for gender equality. The municipal authorities argue that an increase in leisure activity grants and a cap on property tax increases should be taken into account. While these may be positive measures in themselves, they do not change the fact that the increase in preschool fees disproportionately affects a specific group in society—namely, full-time working parents of young children.

We hope that the Fjarðabyggð municipal council will reconsider its decision and reverse the planned fee increases. If not, it is evident that the municipality is acting in direct opposition to existing collective agreements and contributing to dissatisfaction in the labor market.

Halla Gunnarsdóttir, Chair of VR and Hjördís Þóra Sigurþórsdóttir, Chair of AFL.
The article was first published at visir.is