iceland equal pay

Use of this site constitutes acceptance of our. In the E.U., women earn 84¢ for every dollar earned by men. “I think companies should be able to reward staff who show initiative and skills. Update 2020: Reykjavik enforces the Equal Pay Act – with all its might. All staff at Byggðastofnun are members of the finance confederation. ... to undergo certification every three years to show they adhere to the Equal Pay Standard. “I think companies should be able to reward staff who show initiative and skills. Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. Receive Nordic Labour Journal's newsletter nine times a year. Still, Iceland’s workforce is thought to be far more progressive on equal pay than that of the U.S., which recently ranked 28th on the WEF report that Iceland topped. You would be excused for believing the equal pay standard means women get more pay, but that is not the case at the Regional Development Institute Byggðastofnun. Companies are free to apply their own criteria and decide just how valuable jobs are. Aðalsteinn Þorsteinsson, the Director General for Byggðastofnun, explains that regions become vulnerable and that there is a risk of more social problems if there is an imbalance between the genders. THE LAW. The authority prepares, plans and finances different development projects and, supports and strengthens local development by the provision of credit and other forms of financial support. Iceland's women leave work at 2.38pm to protest gender pay gap. “The wage system is based on stability and equality. The newsletter is issued 9 times a year. Byggðastofnun's staff are all members of the medium-sized finance cooperation SFF – The Icelandic Financial Services Association, which counts 4,000 members in total. In 2017, the World Economic Forum has predicted that women will not be paid as much as men for the next 217 years. Iceland's world-first gender pay laws come into effect, requiring businesses with 25 or more employees to prove they are paying men and women fairly to do the same jobs. 2018 Update Law on Equal Pay Certification based on the Equal Pay Standard in Iceland. The equal pay standard is accepted in Iceland as a useful measure for securing equal... A break on private initiative. But even there women earn an average of 14 to 18 percent less than men. Sauðárkrókur is a town in Northern Iceland with 2,600 citizens (above). Since then, there has been a flurry of interest from the international news media about the proposed legislation. With the new law in effect, the Icelandic government hopes to close the gap entirely by 2022. The equal pay standard is accepted in Iceland as a useful measure for securing equal pay between men and women. Anna Lea works at the Icelandic Regional Development Institute Byggðastofnun in Sauðárkrókur in Northern Iceland. Iceland has become the first country in the world to enforce equal pay between men and women. Iceland, equal pay and enforcing the gender pay gap regulations. That is why it was natural for Byggðastofnun to become one of the first public offices to introduce the equal pay standard in Iceland. Around 100 people come to Sauðárkrókur each year to work in meat production or tourism. Sigurður Árnason has worked there for 11 years as a specialist. Friðbert also believes the equal pay standard reduces people’s private initiative at work. The new Equal Pay Certification law took effect in Iceland at the beginning of this year. Work Research InstituteOsloMet – Oslo Metropolitan University,Postboks 4 St. Olavs plass, NO-0130 Oslo. On Jan. 1, Iceland became the first country in the world to make it illegal to pay men more than women for doing the same job, an inequality that exists in almost every country. A sceptical finance confederation. Iceland’s equal pay standard – the employer’s best weapon? Why Has GameStop's Stock Gone Up So High Recently? Text Guðrún Helga Sigurðardóttir, photo: Friðrik Friðriksson. 10/2008. The Equal Pay Standard was written in cooperation between the labour movement, the employers‘ confederation and the Ministry of Labor and Finance in Iceland. “The legislation is based on the equal pay standard that was developed here in Iceland and provides guidelines that companies can implement to make sure they are paying men and women equally.” Iceland is already one of the most progressive countries in the world in terms of equality. The question now is how effective a measure like this will. The trade unions have been positive to it, but sceptical voices exist in the finance confederation. The standard means everyone should be paid the same for the same type of work. Though statistics vary widely on the domestic wage gap, many equal-pay advocates cite a … This appears in the January 15, 2018 issue of TIME. Subscribe to the latest news from the Nordic Labour Journal by e-mail. Equal Pay Act in Iceland. The Central Bank of Iceland complies with the provisions of the Act on Equal Status and Equal Rights of Women and Men, no. This gives the wage system a certain discipline. By signing up you are agreeing to our, Iceland's Prime Minister Talks Climate Change and Gender Equality Over Ice Cream, Sign up to receive the top stories you need to know now on politics, health and more, © 2021 TIME USA, LLC. They stared back in 2012, and quickly realised that introducing the standard would be a quick job; there were hardly any pay differences between the genders at all within the organisation. ... but lack of political power and equal pay. Unlike Iceland, the people making laws and holding positions of corporate leadership in this country are still largely men. * The request timed out and you did not successfully sign up. Anna Lea says workers feel they are stuck at certain wage levels, and that they do not know how to go about getting a pay rise, or whether it is at all possible to get one because the equal pay standard limits their opportunities. Should an economist working with customer service be paid differently from an economist working with stocks and shares? But the reform also faces criticism from some who say it restricts employees’ opportunities to secure pay increases and bonuses. Read an updated guide to equal pay in Iceland and the Equal Pay Standard here! But the system needs to be flexible enough to reward individual workers who do a good job. Under the new law, companies and government agencies that employ at least 25 people will be fined if they can’t prove they pay men and women equally. Subscription is free of charge. From Reykjavík in the south to Sauðárkrókur in the north – companies across Iceland are introducing the equal pay standard which aims to eradicate gender pay gaps. Aðalsteinn Þorsteinsson, Director General for Byggðastofnun. An unexpected error has occurred with your sign up. — On March 8, 2017, Prime Minister Bjarni Benediktsson announced in a meeting in New York that Iceland planned to mandate equal wages for men and women. Gender pay gaps always represent a problem for society. While people have been quick to comment, either praising Iceland as a feminist utopia or condemning the naïve attempt to fix a complicated problem, the case of equal pay legislation and Iceland… Please attempt to sign up again. The most difficult task was to classify the different roles, and to establish rankings. Posted on January 5, 2018 by Darren Newman. So the internet informs me that Iceland has become the first country in the world to make it illegal to pay men more than women. Gender pay gaps always represent a problem for society. It's free. What President Biden's Call With Putin Means for U.S.-Russia Relations. Iceland’s equal pay standard – the employer’s best weapon? “The equal pay standard is the best weapon employers have been handed for many decades,” says Friðbert Traustason, Chairman of The Confederation of Icelandic Bank and Finance Employees. Why should anyone work more and show enthusiasm if she or he stands no chance of getting rewarded for their extra effort? The town is best known among Icelanders for the country's sole remaining cooperative shop. In the U.S., that figure is 80.5¢, according to the Census Bureau–and the gap is even higher for American women of color. Byggðastofnun is financed by the Icelandic state. The Gender Pay Gap = not Cool! And its new law requires companies with 25 or more employees to obtain certification to confirm that equal pay is a reality for all employees, regardless of gender. “The only thing we learned is that there are very narrow pay gaps between people performing the same job. All Rights Reserved. Please try again later. This might make it impossible to reward a good employee through a pay rise, or to pay a bonus to someone who shows initiative and works independently. Iceland’s parliament has presented a bill that would require public and private businesses to prove they offer equal pay to employees, in what would be the first such requirement in the world. The New Year ushered in a new wage policy in Iceland, where it is now illegal for companies to pay men more than women for the same job. The salary system is simple; all secretaries are paid the same, as are all specialists and all heads of departments. To maintain gender equality and equal pay, you measure how much should be paid for different jobs. A major turning point in the global fight for gender pay parity was marked on January 1, 2018 when a new Icelandic law on pay certification came into force. Iceland, however, is charting new territory. Over and above that, she says, is the European Union right to equal pay, which gives workers the right to go to civil court or a tribunal. Aðalsteinn argues the equal pay standard puts the wages into a system where all procedures are documented and all salary decisions are justified. Kaupfélag Skagfirðinga is the largest business in the region, and is involved in fisheries, dairy production, meat production and more. Right now, Iceland’s largest businesses are introducing the equal pay standard. Iceland has become the first country in the world to force companies to prove they pay all employees the same. Companies and state organisations that have been certified must be able to show there is no more than 3 % differences in wages. Friðbert points out that the certification legislation only certifies what different companies decide themselves, without any negotiations with employees. International Women's Day 2017: Iceland becomes first country in the world to make firms prove equal pay. Since the first edition of the Forum report in 2006, Iceland has closed around 10% of its total gender gap, making it one of the fastest-improving countries in the world. In 2015, women earned 14-20% less than men, according to Statistics Iceland. With a staff of 28, Byggðastofnun is one of the main employers in Sauðárkrókur. On Monday, it became the first country in the world to legalize equal pay, Al Jazeera reports. Byggðastofnun is an independent body which helps develop Iceland's regions and businesses in rural areas. Yet all surveys have so far shown the same number – a difference of 10-15 %. Iceland introduced an Equal Pay Standard in 2012, ÍST 85:2012 (Equal wage management system - Requirements and guidance). Iceland has been a member of The Equal Pay International Coalition (EPIC) since the launch at the UN General Assembly in September 2017. The 2017 law doesn't just expose a company that violates the principle to lawsuits. Byggðastofnun is based in Sauðárkrókur in North-Western Iceland. Critics say the standard limits people’s chances to get pay rises or bonuses. Byggðastofnun has been located in Sauðárkrókur since 1998, when it moved from  Reykjavík. Iceland has had legislation supposed to guarantee equal pay for men and women for a very long time. Employers will face fines if they are found to be in violation. Byggðastofnun staff never discuss their wages, but Sigurður thinks the equal pay standard is a good thing. Iceland PM on equal pay: It doesn't just happen by sitting and waiting. Agriculture is key to this region, which gets most of its income from food production. The town's population is growing and has reached around 3,000 people. This creates positivity and trust, but sadly, in practice salaries are still secret in Iceland. No other country has gone as far as Iceland in demanding equal pay for equal work. The new rules stipulate that all companies and government agencies employing at least 25 people will have to obtain government certification of their equal-pay policies. The Chairman is one of them. The Nordic nation has pledged to eradicate the gender pay gap by 2022 She wants more openness around how wages are set on different levels, and would also like to see more information about the equal pay standard and how it affects employees. Now another small country has joined a global effort to try narrow the gap in pay between genders: Iceland. 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