The Icelandic Seamen’s Union (SI) initiated a strike on May 25, affecting three containerships owned by Eimskip. This indefinite strike follows the expiration of a contract that included wage increases and cost-of-living adjustments at the end of last year. Eimskip claims to be in ongoing discussions with the union, including mediation efforts, while refuting allegations that it has been employing lower-cost foreign labor in place of Icelandic crews.
Last week, a potential strike by shoreside employees was postponed while a competency analysis of port operations is conducted. Negotiations regarding the collective wage agreement have been pushed to October 31, as the company implements a new job classification and competency-based pay system for harbor staff. The vessels affected, namely Bruarfoss, Dettifoss, and Selfoss, are registered under a subsidiary in the Faroe Islands, leading to media speculation about wage disparities for crews.
Eimskip has denied claims that it requires seafarers to sign on at lower wages via the Faroe Islands, asserting that all crew members are employed under Icelandic collective agreements. The company emphasizes that the dispute centers on the union’s demands for a specific number of owned vessels, while management aims to maintain a mixed fleet strategy. Amid financial pressures, Eimskip has implemented extensive cost-saving measures and reported significant declines in shipping volumes and revenues.
Currently, Bruarfoss and Dettifoss are idle, while Selfoss is en route to Reykjavik. Eimskip anticipates disruptions to its sailing schedule due to the strike and is working to mitigate these effects, although no new negotiations have been scheduled according to media reports.
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