The Icelandic Confederation of Labour (ASÍ) and Confederation of Icelandic Enterprise (SA) have reached an agreement on court proceedings in matters of dispute with regards to foreign employees. An agreement to this effect was signed in March 2004.
It is intended to better ensure that foreigners working in the Icelandic labour market enjoy the terms and other rights provided for in collective wage agreements and the law.
The agreement covers the criteria and common goals. A reference is made to Iceland‘s commitments due to the EEA agreement and the opening of the labour market. The parties to the agreement believe that changes in the composition of the workforce, due to an increase of foreigners in the Icelandic labour market, should not interfere with the existing arrangements when deciding wages and other wage earners’ employment terms through collective wage agreements.
Existing rules on the execution of collective wage agreements shall continue to be the basis and companies, which take advantage of foreign workforces due to their production or services, shall be encouraged to pay wages and provide other employment terms in accordance with collective wage agreements and Icelandic laws.