One of the most radical changes is indexed credit, a controversial banking policy, where the interest rate on a given loan can vary, among other things, on the basis of real estate values and the exchange rate of the krona. Under the new agreement, indexed pension credits over 25 years will be prohibited from 2020, with a few exceptions, and indexed consumer credits will extend their minimum term from five years to ten years. With this new collective agreement and new airlines catching up, it is mainly the management and tourism workers who breathe today. The agreement is based on the purchasing power of wages that increase over the lifespan; interest rates fall significantly and remain low; and the government keeps its promises. These conditions will be assessed in September 2020 and September 2021. The evaluation committee will consist of 3 union representatives and 3 employer representatives. The contract may be revoked if the conditions fail. Orlof for 2019 (50,000) and a one-time payment at the start of the new contract (26,000) should be paid by 2 May. A new collective agreement between VR and SA was signed on May 29, 2015. The duration of the agreement is until the end of 2018. The agreement was adopted by 73.9% of the votes cast in the vote of the deputies held from 10 to 22 June 2015. The main points of the agreement can be found below. However, unions were not prepared to give in and accept that wage increases would be deferred or that employer pension contributions would be reduced.
Following the announcement of new government measures to support businesses due to the crisis, the Board of Directors of the Federal Business Association cancelled a vote and unanimously decided to denounce the agreement, while recognizing the importance of cohesion in the labour market. Under Icelandic law, wages and other conditions of employment negotiated by trade unions and employers` organisations in collective agreements, regardless of gender, nationality or duration of employment, are the minimums for all workers in the labour sector in the area covered by the collective agreement. This also applies to all workers in companies who are outside employers` organizations or who have not themselves entered into collective agreements with trade unions. Agreements reached by workers and employers on less favourable terms of employment than those in collective agreements are null and void and non-binding for the worker. Unions affiliated with the Association of General and Special Workers of Iceland (SGS) have signed a new collective agreement with SA, the employers` organisation, which will come into force if union members give their consent in a vote. The contract applies from April 1, 2019 to November 1, 2022, i.e. for 3 years and 8 months. The date of this signed agreement is crucial. According to the reports, the unions had postponed the strike action planned for 27 March, which is “attributed to a new basis for discussion that has just been presented on behalf of the employers` organisation”. The next day, WOW Air ceased operations and declared bankruptcy.