Declaration by the Government of Iceland
Declaration by the Government of Iceland
to facilitate the agreement between the Federation of Icelandic Labour and Confederation of Icelandic Employers on wage agreements remaining in force
1. The Government of Iceland declares its readiness to cooperate with the Federation of Icelandic Labour (ASÍ) and Confederation of Icelandic Employers (SA) on ways which, in addition to measures on the part of the pension funds themselves, will ease the growing disability pension burden of the pension funds and even out the position between individual funds. To promote the issue further, the Prime Minister will appoint a committee of representatives from the government authorities, social partners and pension funds. The committee’s tasks will include presenting proposals for harmonisation of disability assessment standards between the social welfare system and the pension fund system, primarily focusing on personal inability to earn an income. Furthermore, the committee will address ways to step up vocational rehabilitation with the aim of helping people who for some reason have not established themselves in the labour market or have had to leave it due to unemployment or disability. Priority will be given to offering a personally focused service taking into account individuals’ ability to work. The system will also be simplified and made more efficient, ensuring a better overview of the resourses available in each instance. The findings of the committee on unemployment insurance and labour market measures, cf. item 4, will also be taken into account when these ideas are elaborated. The Government and social partners will be jointly involved in funding these measures whose aim will be to restore as many people as possible to active labour market participation.
Furthermore, the Government declares its readiness to facilitate a more even distribution of the disability pension burden between pension funds covered by the agreement between the Federation of Icelandic Labour and Confederation of Icelandic Employers with a contribution equivalent to 0.25% of the national insurance base, as further specified between the parties, to be implemented over three years: 0.15% in 2007, 0.20% in 2008 and 0.25% in 2009.
2. The Government has also decided, in collaboration with the social partners, to promote a dedicated campaign to boost vocational training and retraining of unskilled workers and those with low educational qualifications, and to improve the position of foreign workers in Icelandic society. These measures will cost an estimated 100 m.kr. in 2006.
• First, it has been decided to delegate the [joint ASÍ/SA] Education and Training Service Centre to prepare course material and train instructors in teaching Icelandic for foreigners. This initiative aims to meet the needs of foreigners who seek to establish themselves in the Icelandic labour market and to improve their position in the community.
• Second, a special Treasury contribution is assumed which will meet the cost of holding courses and retraining people in the labour market who study on courses based on a curriculum accredited by the Education and Training Service Centre and ratified by the Ministry of Education. Life-long learning centres, which are operated all over Iceland, will be delegated to handle these courses.
• Third, the Education and Training Service Centre and Ministry of Education are expected to continue their cooperation on real competence assessments which aim to evaluate the previous studies and competence of people who want to earn further educational qualifications.
• Fourth, it has been decided to step up job and study counselling for unskilled workers and those with low educational qualifications. The Ministry of Education and Education and Training Service Centre will investigate how to arrange such support so that it is used most effectively and more people will take advantage of the available life-long learning and retraining opportunities. For this purpose, extra funds will be provided to support personally focused study and job counselling under the auspices of life-long learning centres all over Iceland.
3. The Government will sponsor legislation on temporary employment agencies for approval by Parliament before the Christmas recess. The bill will state the following principles as conditions for temporary employment agencies to operate in Iceland:
• It will be compulsory to register temporary employment agencies in Iceland.
• Temporary employment agencies providing services in Iceland exceeding 10 working days over each 12-month period shall have a representative in Iceland and provide the Directorate of Labour with specified information about their activities before employment commences.
• Temporary employment agencies domiciled outside the European Economic Area or an EFTA state will not be allowed to provide services in Iceland unless authorised by agreements to which Iceland is a party.
• Temporary employment agencies will not be allowed to demand, negotiate or accept payment from employees for offering or providing them with jobs, neither on commencement of an appointment nor later.
• Temporary employment agencies shall make written contracts of employment with their employees.
• The Directorate of Labour will be authorised to request information that it deems necessary in order to monitor implementation of the law on temporary employment agencies, including contracts of employment and terms of employment.
4. The Government will sponsor legislation on changes to the payment of unemployment benefits in line with the agreement now concluded between the Federation of Icelandic Labour and Confederation of Icelandic Employers. Provisions will include a discretionary rise in minimum benefit, earnings-related unemployment benefits and shorter claim periods. These measures will be financed with payments from the Unemployment Insurance Fund and the parties agree that there are no grounds for an increase in the employment insurance charge on the entry into force of the law, since the Fund has the scope to finance these changes based on the current unemployment rate. This agreement is in the spirit of the conclusion reached by a committee on unemployment insurance and labour market measures in a report submitted to the Minister of Social Affairs on 9 November 2005. The committee’s findings on reforms to unemployment benefit and measures in the labour market, such as vocational rehabilitation (cf. item 1) shall further be taken into account.
Reykjavík, 15 November 2005