News

At the end of June, representatives of Efling attended a conference held by UNI Global, the international federation that Efling joined at the beginning of the year. The conference was the regular conference of UNI Europa Property Services, the UNI division that coordinates cooperation between European affiliate unions in the cleaning and security sectors. The conference took place in Paris, at the offices of the French trade union CFDT Services in the 19th arrondissement, a historic working-class district of the city. Efling was represented at the conference by Sólveig Anna Jónsdóttir, chair of the union, and Viðar Þorsteinsson, director of education and social affairs. The programme began on Wednesday, 24 June, with discussions including UNI’s campaign to organise cleaning work during daytime hours. The campaign is called the European Daytime Cleaning Alliance and involves cooperation with employers as well as advocacy at European Union level. On Thursday, 25 June, Viðar took part in a panel discussion with trade union representatives from Belgium and Italy on the findings of an extensive comparative survey commissioned by UNI on collective agreements for security guards and cleaners in Europe. Efling was one of the respondents to the survey. In his contribution, Viðar described Efling’s work in the cleaning sector, which has included increased monitoring of workload, work pace and working conditions among cleaners, as well as communication with public authorities on these issues. The conference programme included panel discussions on a wide range of topics. These included the conditions of migrants and women, issues of particular relevance to the cleaning sector, and the work of UNI and its affiliates to hold large multinational companies in cleaning and security services accountable for workers’ welfare regardless of location, including through so-called global agreements. At the end of the day on Thursday, members of the French trade union CFDT gave speeches in which they discussed their working conditions and terms of employment. The final day of the conference, Friday, 26 June, began with discussions on public procurement. UNI has advocated for stricter requirements concerning workers’ rights in procurement processes. Cleaning and security services are both examples of work that public institutions and municipalities are increasingly outsourcing to private companies. Representatives of UNI affiliates on the panel described how unions in their countries have sought to have a positive influence on government procurement policy and to counteract procurement practices that encourage a “race to the bottom” through competition at the expense of workers’ rights and welfare. French economist François-Xavier Devetter, professor at the University of Lille, then gave a presentation on his research into the position of cleaners in France. He has devoted much of his research to this field and has published books on the subject. The closing remarks of the conference were delivered by Zeynep Biçici, a leader and chief negotiator for cleaners within the German trade union IG BAU. She is also president of UNI Europa Property Services and was re-elected to the position at the conference. Participants at the conference included leaders and staff from Nordic trade unions with which Efling has already built ties through SUN. “ After taking part in the UNI Europa Property Services conference, I am convinced of the value of participating in international trade union cooperation. It gives us the opportunity to learn from the best work being done by our sister unions and to strengthen our knowledge of conditions in the sectors where our members are in the most vulnerable position, which is especially true of the cleaning sector. In both cleaning and security services, there are large companies operating across national borders. When trade unions are able to exchange information and share their experience, it makes a decisive difference to our position in relation to employers , ” said Sólveig Anna Jónsdóttir, chair of Efling. “ The cleaning sector has been a major focus for Efling in recent months. Our communication with sister unions in the Nordic countries on issues relating to the sector has already been very useful, and it seems to me that cooperation with European unions will be useful as well ,” said Viðar Þorsteinsson.

Efling Union's office will operate on reduced opening hours during the peak summer period. From 6 July to 4 August, the office will be open from 10:00 to 14:00. Regular opening hours will resume after the August Bank Holiday weekend (Verslunarmannahelgi).

Varða, the Labour Market Research Institute, conducts an annual survey on the situation of wage earners in Iceland. The survey has now been sent to Efling members, who are encouraged to participate.  The survey results are important for assessing the economic and social circumstances of Efling members and provide valuable information to support Efling’s leadership in collective bargaining.

A highly significant victory was secured at the Court of Appeal yesterday when the court ruled in favour of a man who had worked at Vietnam Restaurant before the company was declared bankrupt. Among other things, the court recognised that his wage claim should include overtime pay, thereby overturning the Reykjavík District Court's earlier ruling on that issue. The judgment is of enormous importance, not only for the claimant himself, but also for nearly forty other former employees, including members of Efling, whose cases are still awaiting resolution. Vietnam Restaurant was owned by restaurateur Quang Lé. Companies owned by Lé were declared bankrupt one after another during 2024. Collectively, these cases have commonly become known as the Wok On cases, after Wok On, Lé's largest restaurant chain. Suspected Human Trafficking and Other Offences WOKON, the operating company behind Wok On, was declared bankrupt on 12 June 2024. Prior to that, the Icelandic police had carried out extensive operations targeting companies owned by Quang Lé, who was suspected of human trafficking, money laundering, violations of foreign workers' labour rights, and organised criminal activity. At the time, Quang Lé owned a total of eight companies, either operating restaurants or holding real estate. Vietnam Restaurant itself was declared bankrupt on 12 September 2024, and the case decided by the Court of Appeal yesterday stems from that bankruptcy. Cheated Out of Overtime Pay Before the court, the claimant sought recognition of unpaid wages owed by the bankruptcy estate, including both ordinary wages and overtime pay, as well as accrued holiday pay. The bankruptcy trustee had already accepted the claim relating to ordinary wages, but disputed the overtime claim, which amounted to just under ISK 15 million. The claim was based on the fact that, from the outset of his employment contract in February 2022, the claimant had consistently worked far more hours than he had been paid for. He typically worked twelve hours a day, six days a week. During the proceedings, it was pointed out that, under Icelandic law, employers are responsible for maintaining accurate records of employees' overtime. Vietnam Restaurant had failed to do so. The bankruptcy trustee nevertheless argued that it was for the former employee to prove that he had worked the overtime in question. Co-workers' Testimony Proved Decisive As no time records or other documentation of working hours were available, the claimant called numerous former employees of Vietnam Restaurant as witnesses. They testified that both the claimant and the other staff members had routinely worked twelve-hour days, six days a week. Their testimony was consistent with statements they had previously given to the police, while the restaurant's opening hours further supported their accounts. In its judgment, the Court of Appeal held that, because Vietnam Restaurant had failed to establish the legally required system for recording employees' working hours, it was the employer's responsibility, and therefore that of the bankruptcy trustee, to rebut the employees' account of their working hours. The bankruptcy estate had failed to do so. Nearly ISK 20 Million Recognised as Priority Claims The Court of Appeal therefore upheld the claimant's assertion that he had worked substantial overtime, ruling that the overtime claim should be recognised as a priority wage claim against the bankruptcy estate. The overtime award amounted to just over ISK 14 million. The court also upheld the claimant's claims for ordinary wages and accrued holiday pay. In total, the Court of Appeal ruled that claims amounting to just under ISK 19.9 million should be recognised as priority wage claims in the bankruptcy proceedings of Vietnam Restaurant. The deadline for seeking permission to appeal the case to the Supreme Court is two weeks, although it remains unclear whether any further appeal will be pursued. Wage Theft Must Have Consequences As noted above, the outcome of this case is of tremendous importance for a large number of people, not only those who worked at Vietnam Restaurant, but also former employees of Quang Lé's other companies, where similar employment practices appear to have been widespread. Employees were allegedly required to work excessive hours, given very little time off, and denied the wages to which they were legally entitled. Similar claims have been submitted on behalf of former employees in all of Quang Lé's bankrupt companies. In most cases, however, the bankruptcy trustees have rejected those claims on the grounds that no records exist documenting the unpaid overtime. The Court of Appeal's judgment is expected to set an important precedent and should lead the bankruptcy estates to recognise the former employees' legitimate claims. Efling is very pleased with this major victory for justice at the Court of Appeal. Wage theft is unacceptable and must have consequences, including in bankruptcy proceedings.

Efling Union and Samhjálp have reached a collective agreement with the assistance of the State Mediator. The agreement was signed on 18 June. The agreement is a comprehensive collective agreement and is, in most key respects, comparable to Efling's collective agreements with public sector employers, including provisions on wage increases. Efling welcomes the successful conclusion of the agreement.