New agreement between Efling

and the City of ReykjavíkPresentation for members – March 2020

About the agreement•It has been signed by the negotiating committee and Chair, subject to membership approval in a vote.

•It has been presented to Union Representatives.

•Voting begins at 12:00 noon on Monday, 23 March, and ends at 12:00 noon on Friday, 27 March

•The agreements takes effect if a majority of members approve.

•Period of validity is 1 April 2019 to 31 March 2023.

Main components of agreement: Overview

1. Wages

1. Pay scale increases

2. Change to pay scale

3. Special correction

4. Former overtime payments

2. Shortened workweek

1. Daytime work

2. Shift work

3. Individualised factors

1. Recognition of job-experience

2. Recognition of education

4. Other matters

1. Consultative committee

2. Holiday rights

3. Preparation time

4. Re-evaluation of jobs

1. Wages

Pay scale increases

• Each pay grade is increased by 90,000 ISK in total, at base pay

level, over the agreement period, as per the private labour

market agreements.

• The increase grows by pay level and can be 98,100 ISK at the

highest, for employees at pay level 6.

• The increase will take effect in steps over the agreement period:

• 1 April 2019: 17,000 ISK

• 1 April 2020: 24,000 ISK

• 1 January 2021: 24,000 ISK

• 1 January 2022: 25,000 ISK

Change to pay scale• The gap between pay grades will be adjusted, which will lead to an

additional increase of the base salary.

• The increase amount varies by pay grade.

• On average, it’s a 7,800 ISK increase for each pay grade at base level.

Job title (example) Department Change

Employee 2 SFS 8,906 ISK

Instructor 1 SFS 10,043 ISK

Production kitchen worker VEL 6,157 ISK

Residential services worker VEL 10,709 ISK

Care worker VEL 9,521 ISK

Gardening worker USK 7,802 ISK

Special correction• A special increase will be applied to the lowest total wages and wages for

traditional women’s jobs, starting from 1 April 2020.

• This payment is separate from the base salary, so does not grow by pay

levels and is not included in the base for shift and overtime premium.

• It does not apply to job titles that already receive bonuses (kaupauki).

• The payment will be 15,000 at the highest, for pay grades 221-227.

• The amount then decreases by 1,500 ISK with each higher pay grade.

• Lowest payment is 1,500 ISK for pay grade 236, no payment for higher pay

grades.

• The payment will be fixed throughout the agreement period.

• If a person is moved up to a higher pay grade, e.g. through re-evaluation

of their job, they will receive a correspondingly lower payment.

Former overtime payments

• Payments for refreshment breaks are discontinued.

• Preschool workers: 10 hours

• Home service workers: 13 hours

• Those already employed on 1 April 2020 receive the same overtime pay amount in the form of a fixed payment.

• People who start employment after 1 April 2020 receive the payment in different form.

• Preschools: 32,500 - 42,500 (see next slide)

• Home service: 41,000 - 50,000 (see next slide)

• Payments increase by 2.5% on 1 January 2021 and again on 1 January 2022.

Former overtime payments for new employees – preschools

Former overtime payments for new employees – home service

Dates and retroactivity

• First pay scale increase (17,000 ISK) is retroactive from 1 April 2019.

• Paid together with the next salary payment.

• A 105,000 single payment from 1 August 2019 will be deducted.

• Change to pay scale and special correction will take effect from 1 April 2020.

Wages: Timeline of increases

1 April 2019 1 April 2020 1 January 2021

1 January 2022

Pay scale increase

17,000 ISK retroactive

24,000 ISK 24,000 ISK 25,000 ISK

Cumulative pay scale increase

17,000 ISK 41,000 ISK 65,000 ISK 90,000 ISK

Change to pay scale

7,800 ISKon average

continued continued

Special correction

1,500-15,000 ISK continued continued

Calculator!•Increases for all job titles and pay levels throughout the agreement period can be checked using the calculator on Efling’s website

•https://efling.is/laun-i-nyjum-kjarasamningi-vid-reykjavikurborg/

•Select job title and pay level.

Other wage factors•30 minutes that were defined as working time in kitchens and canteens: to be solved in the consultative committee.

•December and holiday bonuses:

December bonus Holiday bonus

2. Shortened workweek

Shortening – daytime work•See Attached document 1 in the new agreement.

•A shortening of 13 minutes per day (65 minutes per week) is ensured from 1 January 2021 without any reduction in pay or other rights.

•By a special workplace agreement, the workweek can be reduced further, by up to 4 hours per week – down to 36 active working hours per week.

•A 36-hour workweek requires giving up custody over coffee breaks. Employees will nonetheless be ensured refreshment breaks.

•Task group on working hours, made up of representatives of employees and management, will form a proposal on how to implement the shortening. By 1 October 2020, results from the employee-management dialogue should be ready. A vote is held on the proposal and the shortening should be implemented no later than 1 January 2021.

Shortening – shift work•See separate presentation

3. Individualised factors

Individualised factors•The range of factors that are evaluated in pay, through a transfer to a higher pay level, is broadened in this agreement.

•Other rights are also improved.

1. Job-experience

2. Recognition of courses and education

3. Paid study leave

Job-experience•A clause on the recognition of experience in “comparable jobs” is no longer limited to the municipalities and state.

•It can now apply to all kinds of workplaces, including abroad – in cases of uncertainty, the consultative committee will review the matter.

•Personal premium for professional and job experience can be up to 6 x 1.5% = 9% on top of the base salary.

Individualised factors: Education and training

•“Personal premium for additional education” - Article 1.2.2.3

• Recognition of education beyond what the job demands is improved

• Types of studies:

• Job-related studies or courses customised to the needs of the City

• Formal, specialised studies on upper secondary school level

• University education

• 1.5% for each study-component, 4.5% at the highest

•Study leave is no longer an authorisation but a right (Article 12.3)

• After 4 years of employment

• A two-week study leave is accrued every year

• Never more than 6 months

• The workplace is authorised to limit this to 10% (of staff or weeks) per year

Other matters•There are grounds for continued reforms within the consultative

committee on various topics, based on mutual understanding and

documents created during the negotiations

•Holiday rights: All City employees will have 30 paid vacation days

•2 hours in preparation time for general preschool employees for

projects that require preparation

•Re-evaluation of jobs

• Time is up for the regular re-evaluation of many jobs

• A right to re-evaluation of a job, and a potential increase in job-evaluation

points, which leads to a higher ranking in the pay scale

• Job titles can also be revised and merged

The city is in our hands!