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In Iceland, the labour/trade unions bargain with employers about wages and other rights of workers. The agreement rached is called a collective bargaining agreement.
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In the collective bargaining agreement, there are decisions about wages, illness and accident compensation, working hours, time off, holidays and more.
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Wages agreed upon in individual work contracts must be in accordance with the current collective bargaining agreement for that job title. In Iceland, there are rules regarding minumum wages.
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A work contract with lower wages, less vacation time or less rights of any kind, than what is stated in the collective bargaining agreement is illegal and makes the contract invalid. All workers enjoy the rights stated in the collective bargaining agreement.
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Trade and labour unions assist those workers who have not been paid the correct salary. Most unions participate in the cost for various training and education courses, including Icelandic lessons.
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Additional rights and perks can be obtained by becoming a official member of the unions, that is, by applying for a full membership.
