Strikes by Iceland’s oil truckers and hotel employees threaten to disrupt gasoline supplies in the island’s capital region and may dent its key tourism industry.
(Bloomberg) — Strikes by Iceland’s oil truckers and hotel employees threaten to disrupt gasoline supplies in the island’s capital region and may dent its key tourism industry.
Gas stations could start running out of fuel as soon as on Thursday, with potential food shortages looming next week, after 70 oil truckers went on an indefinite strike on Wednesday, halting deliveries. Hundreds of hotel employees also started industrial action over pay, affecting tourism companies, according to local media.
The strikes follow the breakdown of talks between employers and one of the north Atlantic country’s largest unions, Efling, representing workers in and around Reykjavik. The union has refused to agree to a similar deal as the collective agreements the bosses have signed with most other employees.
Iceland’s authorities have struggled to calm the booming economy that’s been relatively unfazed by western Europe’s steepest monetary tightening. The central bank last week warned of more interest rate hikes after the economy grew a stronger-than-estimated 7.1% last year, and recent wage agreements secured bigger pay increases than it had projected. Sedlabanki now forecasts a surge of 18.8% in hourly wages over two years through 2023.
Solveig Anna Jonsdottir, leader of Efling, is optimistic that a deal will be reached, public broadcaster RUV cited her as saying.
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