Kjarasamningar

Kjarasamningar (collective bargaining agreements) are negotiated contracts between employers and trade unions that set wages and other terms of employment for groups of workers. They typically regulate pay scales and wage increases, working hours, overtime, rest breaks, vacations, parental and sick leave, health and safety provisions, pension schemes, training, and other terms of employment. In Iceland and other Nordic countries, such agreements are a central mechanism for arranging work conditions across industries.

Parties and scope: signatories are usually employers' associations and labor unions. Agreements may be sector-wide, covering all workers in a given industry, or company-level, binding only to the signatory employers and their employees. In many cases sectoral agreements apply to all workers in the sector regardless of individual union membership, while others require affiliation for full coverage or use extensions by law or practice.

Contents and effect: kjarasamningar establish wage floors and pay structures, rules on overtime and shift premiums, vacation entitlements, sick pay, parental leave, and pensions; they also specify working hours, rest periods, job security, layoff and recall procedures, and grievance mechanisms. They are legally binding on the signatories for the term of the agreement.

Negotiation and duration: agreements are typically negotiated for a fixed term, commonly one to three years. When the term ends, parties renegotiate. If talks fail, mediation or arbitration may be used to resolve outstanding issues. Compliance is enforced through the contractual obligations and workplace dispute procedures.

See also: Collective bargaining, Labour law, Nordic model.