The federations of trade unions, employers and public authorities (The Icelandic Confederation of Labour (ASÍ), the Federation of State and Municipal Employees (BSRB), the Association of Academics (BHM), the Icelandic Teachers‘ Union (KÍ), the Association of Municipalities (Samband sveitarfélaga), the City of Reykjavík (Reykjavíkurborg), the Ministry of Finance and Economic Affairs and SA – Business Iceland, the Association of Icelandic Employers) cooperated formally regarding wage and salary information and the underlying economic premises of wage agreements – the so-called Salek framework – from 2013 to 2016. The working party in the Salek framework had regard to labour market negotiations in the Nordic countries, following a visit in February 2013, and prepared a report on their findings, called Wage agreements and the labour markets in the Nordic countries (Kjarasamningar og vinnumarkaður á Norðurlöndunum, only available in Icelandic).

In October 2015, the above associations, save for BHM and KÍ, signed a frame agreement on improved work processes in wage negotiations. A part of this agreement is to formulate a new wage negotiation model for Iceland, in which both BHM and KÍ took part. The working party engaged a Norwegian professor in labour market economics, Steinar Holden, as consultant. Professor Holden turned in a preliminary report in August 2016 where he described his ideas for improvement to the Icelandic negotiation model. The working party issued three reports on economic conditions and wage developments, in October 2013, February 2015 and the third in July 2016.

The State Conciliation and Mediation Officer is not part of this working party but monitors its progress.

New Model for Wage Formation in Iceland – Steinar Holden’s preliminary report (2016)