Introduction and principal substance Sample Clauses

Introduction and principal substance. The collective wage agreement pays particular attention to improved wage terms for low- income workers. Wage increases contained in the agreement are all in the form of rate of pay increases to pay scales and fixed monthly wages for daytime work. This means a broad consensus in the labour market to the effect that wage earners with low incomesm will see proportionately greater increases in their income than those who have higher wages. One of the main goals of the collective wage agreement is to promote interest rate decreases, which will be of particular beneficial use to households and the employment sector. In the opinion of the parties to the Agreement, the Agreement creates room for interest rate decreases, which increases the spending power of households and makes it easier for companies to meet the wage increases that the Collective Wage Agreement calls for. In addition, interest rate decreases promote decreases in rental prices. One of the prerequisites for advantageous terms for wage earners and full employment is the competitive ability of the Icelandic economy. The goal of the parties is to safeguard the purchasing power of wages and to promote lasting lower inflation and interest rates. The agreement provides for the direct connection between the flexibility of the economic sector to embark on wage changes and wage increases. Provisions on wage premiums due to increased productivity ensures wage earners a share in the benefits when the GDP per person increases past a particular level. The Agreement also ensures that wage earners who are paid according to negotiated pay scales will follow general wage developments in the event of significant wage drifts in the mainstream labour market. The parties to the agreement wish to secure a healthy labour market where violations against wage earners are not tolerated. Measures used will include enacting actions against serial incorporation and social underbidding, which will, at the same time, ensure the equal competitive position of companies.
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