Industry

Wage Agreement

Between

Føroya Arbeiðarafelag
and
The Faroese Employers' Union (Føroya Arbeiðsgevarafelag)

Art. 1

The scope of this Agreement is worker and specialist worker occupations, which professionally and geographically fall within Føroya Arbeiðarafelag’s and Føroya Arbeiðsgevarafelag’s area of activity.

Basic Wages and Supplements

Art. 2

1.
As of May 1, 2024, the basic wage is DKK 149.70 per hour.
As of May 1, 2025, the basic wage is DKK 154.54 per hour.

2.
The wage is defined as minimum wage.

3: Special Pay elevation
The parties agree to provide the following special supplement for the agreement period:

From May 1, 2024: DKK 3.75
From May 1, 2025: DKK 3.50

No additional supplements are calculated on this special supplement, except for superannuation, holiday pay, and overtime pay.

Supplements

Art. 3

For excavation, clearing up construction sites, coal work, dirty work, cement, concrete, casting and pouring, wall tying and hydraulic construction, asphalt, tar and rock work, working at slipways scrubbing the underside of ships and waxing externally, up to the gunwale, as well as spray painting at shipyards the wage is the basic rate per hour + a supplement of 0,29% per hour.
For cleaning, the wage is the basic rate + a supplement of 0,35% per hour.

Art. 4

For working with stone crushers, operating engines, compressors, drawworks and the like during construction work; for operating cranes; for driving forklift trucks over 10t, tractors, dumper trucks and similar tools, such as road rollers, hydraulic excavators and drill trucks the wage is the basic rate per hour + a supplement of 3,35% per hour.
For charging and blasting as well as rock drilling the wage is the basic rate per hour + a supplement of 5,19% per hour.
For tunnel work the wage is the basic rate per hour + a supplement of 4,73% per hour.
For cleaning boilers, water tanks on ships, oil tanks, cod-liver oil tanks and melting devices as well as cleaning out drains and keels inside ships the wage is the basic rate per hour + a supplement of 5,47% per hour.
For working with hazardous waste at incinerator plants, hazardous substances requiring special protective great, e.g. asbestos, as well as for clearing up and cleaning following spills requiring specialist knowledge the wage is the basic rate per hour + a supplement of 5,47% per hour. This subarticle 4.e. enters into force on May 1, 2013.

Art. 5

The basic rate for drivers and forklift truck drivers doing the work mentioned in Art. 2 and for workers operating drawworks during discharge operations is basic rate per hour + a supplement of 1,17% per hour.

The basic rate for drivers and forklift truck drivers doing the work mentioned in Art. 3 is basic rate per hour + a supplement of 1,62% per hour.

The basic rate for driving breakdown lorries and road tankers (containing oil and petrol) doing the work mentioned in Art. 2 is basic rate per hour + a supplement of 3.59% per hour, and for the work mentioned in Art. 3 the wage is basic rate per hour + a supplement of 4.02% per hour.

Protocol:

The parties agree to initiate talks, during the term of the Agreement, about reviewing the supplement scheme included in this Agreement. The parties agree that the scheme shall be modernised and made as simple and flexible as possible.

Employment Contracts

Art. 6

Employment contracts are to be issued as stipulated in the legislation concerning employment contracts enacted by the Faroese Parliament.

Young Workers

Art. 7

Young workers aged 14 shall receive 50%, and young Workers aged 15 and 16 shall receive 75% of adult wages for both standard and overtime pay. Workers aged 17 shall receive full pay.

Overtime Pay and Non-Working Days

Art. 8

Overtime pay for all types of work shall be calculated based on full standard wages as follows:

When ordinary working hours are from 7:00 AM to 4:00 PM:

From 4:00 PM to 8:00 PM: 35%

From 8:00 PM to 7:00 AM: 60%

When ordinary working hours are from 08:00 AM to 5:00 PM:

From 5:00 PM to 9:00 PM: 35%

From 9:00 PM to 8:00 AM: 60%

When ordinary working hours are from 9:00 AM to 6:00 PM:

From 6:00 PM to 10:00 PM: 35%

From 10:00 PM to 9:00 AM: 60%

Saturdays from 00:00 to 24:00: 65%

Sundays and holidays from 00:00 to 24:00: 100%

This also applies to work started on the days mentioned, which continues past midnight and until normal working hours resume.

Where the lunch break, pursuant to art. 10, sa. 3 and 4 (10. 3. and 10. 4.), is shortened, the overtime shall take effect one hour earlier.

Days-Off

On May 1, Christmas Eve (December 24), and New Year’s Eve (December 31) workers have the whole day off. On Faroese Flag Day (April 25), Easter Eve, Whitsun Eve, and Nov 1 workers have the day off from 12:00 noon.

Any urgent work carried out on May 1, Christmas Eve, New Year’s Eve, or after 12:00 noon on the days mentioned above shall be compensated with double standard wages for the duration of the holiday. However, work after 13:00 will be paid with double Sunday and holiday pay.

According to Act 353, dated August 7, 1922, Danish Constitution Day (June 5) is a non-working day after 12:00 noon.

In addition to these, the wage earner is entitled to 5 days-off without pay. The employer appoints in consultation with the wage earner when these days-off are to be held.

Work before 4:00 AM/5:00 AM

If work starts before 4:00 AM during Summer (summer is defined as the period between May 1 and October 31) and before 5:00 AM in Winter, then wages shall not return to standard before workers have had the time to sleep (time to sleep is defined as 6 hours away from the workplace).

Working Hours, Round-the-Clock Work, and Shift Work

Art. 9

1. The standard working week is 40 hours and shall be divided into 8 hours per day from Monday through Friday worked between 7:00 AM and 6:00 PM, as per agreement reached by the parties at each workplace.

Working hours shall be decided by a simple majority at the workplace and voting shall take place with ballots.

When it is agreed at a workplace that standard working hours are from 7:00 AM to 4:00 PM, then these working hours apply to the whole workplace.

When it is agreed at a workplace that standard working hours are from 8:00 AM to 5:00 PM, then these working hours apply to the whole workplace.

When it is agreed at a workplace that standard working hours are from 9:00 AM to 6:00 PM, then these working hours apply to the whole workplace.

If a workplace can be naturally divided into several departments, working hours differing from the standard working hours can be agreed between the workers, with their union representatives, and the company. This shall be decided by ballot vote. Said working hours shall fall between 7:00 AM and 6:00 PM, and such agreements shall be submitted, in writing, to the unions for approval. Unless otherwise indicated by these parties within 14 days, said agreements are considered approved.

If an agreement is reached with workers at a specific department on departures from standard working hours, in accordance with the above-mentioned, then the new working hours for this department shall be considered standard working hours, and, hence, work outside these working hours shall be considered overtime in accordance with Art. 8.

Round-the-Clock Work

2. Round-the-clock work shall be divided into shifts. All industrial enterprises that usually work in 3 shifts are considered workplaces with round-the-clock work.

If round-the-clock work at fish factories lasts less than 3 but more than 2 consecutive days and nights and at other industrial enterprises less than 5 consecutive days and nights, it shall be considered ordinary work and paid accordingly, including as regards overtime and night work.

The wages for round-the-clock work are as follows:

From 8:00 AM to 4:00 PM standard rate

From 4:00 PM to 12:00 midnight standard rate + 4,58% per hour.

From 12:00 midnight to 8:00 AM standard rate + 6,41% per hour.

If work at a fish factory lasts less than 3 consecutive days and nights, but at least 2 consecutive days and nights, wages shall be paid as follows:

From 8:00 AM to 4:00 PM standard rate

From 4:00 PM to 12:00 midnight standard rate + 7,32% per hour.

From 12:00 midnight to 8:00 AM standard rate + 9,15% per hour.

These supplements shall not be indexed. During round-the-clock work meal breaks shall not be deducted.

If round-the-clock work is carried out on Saturdays, Sundays or holidays, then workers shall receive Saturday, Sunday or holiday wages, however, this shall not interfere with the terms of the 3/2- and 5- days and nights rule.

Workers are to be notified 24 hours before shift work starts. If they do not receive this notice, 1^st overtime is to be paid for that day to each worker on the shifts.

Shift Work

9.3 Work at industrial enterprises may be divided into 2 shifts lasting 8 hours each, with approximately the same size crews, which alternate shifts on a weekly basis.

If shift work at fish factories lasts less than 3 consecutive days and nights and less than 5 consecutive days and nights at other industrial enterprises, it shall be considered ordinary work and paid accordingly, including as regards overtime and night work.

Workers and employers may negotiate working hours between 7:00 AM and 12:00 midnight, which shall be paid as follows:

1^st shift: Standard rate

2^nd shift: Standard rate + 11%

These supplements are not indexed. Meal breaks will not be deducted for the 2^nd shift.

Overtime- when a shift lasts longer than 8 hours, during shift work as well as Sunday and holiday work, then wages are due pursuant to Art. 8.

Sundays and holidays shall not interfere with the 3- and 5- days and nights rule.

When workplaces can be naturally divided into several departments, agreements about implementing shift work at individual departments may be made.

Such agreement shall be reached between the workers, with their union representatives, and the company. It shall be decided by ballots cast by all the workers at the company. Furthermore, representatives of the unions mentioned in this agreement shall be present during voting. Such agreements shall be submitted, in writing, to the union’s board for approval.

Unless otherwise indicated by the union within 14 days from when the agreement was received, the agreement shall be considered approved.

Workers are to be notified 24 hours before shift work starts. If they do not receive this notice, then 1^st overtime for the day is to be paid to each worker on the shifts.

Protocol from the conciliation proceedings:

Regarding round-the-clock work, where there is a shortage of labour, the board of Føroya Arbeiðarafelag agrees that should the unions concerned wish to depart from the intervals stipulated for round-the-clock work, the board shall grant their wish sympathetic consideration.

If workers working round-the-clock in 3 shifts wish to change their working hours, any such change requires the approval of the board of Føroya Arbeiðarafelag.

Round-the-clock work shall not affect the usual meal and drink break schedules at individual workplaces or for different types of work.

Drink breaks shall remain as they hve been in practice at the individual workplaces and different types of work.

Meal Breaks

Art. 10

1. The lunch break must be 1 hour and be between 12.00 and 13.00, and no pay is given for this meal break. If work is performed during the lunch break, then it is paid with double the standard wage , Saturdays double Saturday wages, and Sunday and holidays double Sunday wages.

The time between each meal shall never exceed 4 hours.

2. If overtime exceeds 60 minutes in a single day, employees are entitled to a supper break lasting 1 hour between 18:00 and 19:00, during which no pay will be provided. If work is performed during the supper break, double the overtime wage shall be paid. Notification must be given the day before if overtime is required. If this is not possible, notification must be given before lunch on the same day. If no notification is provided before lunch and supper is taken, employees are entitled to 1 extra hour of pay at the first overtime rate if work resumes at 19:00.

3. Regardless of 10.1. And 10.2., an agreement may be made at the workplace stating that for every 4 hours an employee should have a meal break of 20 minutes.

Pay is not deducted for meal breaks pursuant to this subarticle.

4. At workplaces, where the number of employees is at least 10, an agreement may be made for meal breaks pursuant to 10.3. to be provided as rolling meal breaks consisting of approxomately equally large groups.

Pay is not deducted for meal breaks pursuant to this subarticle.

5. The agreement at the workplace pursuant to 10.3. or 10.4. shall comply with the above-stated regulations regarding working hours.

The Union must receive a written notice regarding alterations to the meal breaks.

Regarding drink breaks, refer to the above-stated stipulations.

Union Representatives and Board Members

Art. 11

Workers at each workplace are entitled to elect a union representative. Detailed regulations for Union representatives are stipulated in a special scheme agreed by the union federation and employers’ association.

Trade union board members are entitled to time-off work to tend to board duties, negotiations, and courses. Employers shall be notified immediately when board members are summoned to meetings.

The same rules and regulations applicable to the dismissal of union representatives also apply to the dismissal of any members of the board of Føroya Arbeiðarafelag.

Minimum Working Hours and Wages

Art. 12

Anyone participating in any work shall recieve wages for at least 2 hours, even when the work is concluded sooner.

Similarly, when workers are summoned and attend work they shall receive 2 hours’ wages, regardless of whether work begins. Alternatively, if work starts late, they shall receive wages for the time they have spent waiting.

Payment of Wages

Art. 13

Wages shall be paid weekly. Wages can, however, be paid fortnightly/monthly, if so agreed with the trade union concerned (Føroya Arbeiðarafelag). Each payment shall be accompanied by a payslip.

Wages are to be paid through authorized payment institutions designated by the unions, or otherwise as prescribed by the parliamentary act in force.

Work Injuries

Art. 14

1. If workers sustain injuries during work, and they are unable to resume work according to a medical certificate, then they shall receive 20% of the working hours lost for up to 10 days with 10% from the employer and 10% from the labour union.

2.If a wage earner, who has worked for the same employer for more than 6 months consecutively, is rendered unable to work due to a work injury, which is a work injury pursuant to article 9 in the parliamentary act regarding occupational injury insurance, after the period of time in subarticle 1 has concluded, then the employer is obligated to pay the difference between the sick pay benefits and the normal wage which the wage earner would have been paid if said wage earner had not been injured.

The employer’s obligation to pay continues until the wage earner is able to resume work.

If the employee is able to resume work, but the work injury demands later treatment then the obligation to pay extends to the sick leave in connection with this treatment, if the treatment is performed within 12 months from when the work injury occurred.

The obligation to pay encompasses 6 months at most in total within the mentioned 12 month period.

Piecework and Specialist Workers

Art. 15

When the nature and circumstances of work allow for piecework, this is allowed, the boards of Føroya Arbeiðarafelag as well as Føroya Arbeiðsgevarafelag are, however, entitled to demand that such agreements be submitted to them for approval.

If workers are ordered to work overtime during piecework, then they shall be compensated in accordance with the overtime rates stipulated in Art.8.

Protocol:
The parties agree that there is a need for a specialist worker agreement and hereby declare that they are working towards signing such an agreement as soon as possible.

Foreman

Art. 16

Each employer has the right to appoint a foreman who is not required to be a member of any union.

Borrowing Workers

Art. 17

Workers loaned from one employer to another retain their employment rights.

Standing Watch on Ships

Art. 18

Workers standing watch on ships anchoring at wharf overnight shall receive a nightly compensation equivalent to the wages for 7.5 ordinary hours of work. The compensation for Saturday and Sunday nights is equivalent to the wages for 10 ordinary hours of work. A night is defined as the period between 9:00 PM and 8:00 AM.

When workers while standing watch on ships carry out work, other than that which the watch shift itself entails, they shall receive pay in accordance with the stipulations in this Agreement.

On-Call Duty

Art. 18a

Workers on-call shall receive an On-call supplement of 13.73% per hour from Monday through Friday at 12:00 midnight. From Friday midnight until regular working hours resume on Monday morning workers on-call shall receive an On-call supplement of 27.45% per hour.

If workers carry out work while on-call, they shall receive wages in accordance with Art. 8.

This stipulation shall, however, not cause any reduction of the remunerations paid pursuant to any watch or on-call schemes currently in force.

Training and Development

Art. 19

The parties recognize the importance of training, further education, and professional development for workers.

The parties agree that it is important that the employees are improved by training, in-service training, and course participation.

When the employee is required to attend a course, it will be settled pursuant to art. 2. in this agreement, including possible supplements, however, 8 standard hours at the most per day. This also applies, if these courses are placed on Saturdays, Sundays, or fixed days-off.

Maternity/Paternity Leave

Art. 20

Employees, who are employed under this Agreement are entitled to maternity or paternity leave in accordance with the legislation in force.

Covering Senior Positions

Art. 21

Employees who, on special orders or as per agreed schedule, provisionally cover a more senior position for 1 consecutive week or longer shall receive for that period the same wages as the person they are covering for, provided that they take over the tasks related to the more senior position.

Leave

Art. 22

Employees who have worked for the same employer for 5 consecutive years may be granted unpaid leave, provided that this is not in conflict with the employer’s interests. The employer shall have a position available when the leave ends.

Termination of Employment

Art. 23

1. For any hourly paid work whatsoever lasting longer than 3 months, the period of notice for dismissal by employers is the following:

Less than 6 months’ employment: 5 working days.

More than 6 months’ employment: 7 working days.

More than 1 year’s employment: 10 working days.

More than 2 years’ employment: 15 working days.

More than 3 years’ employment: 20 working days.

More than 5 years’ employment: 25 working days.

The period of notice from employees is the following:

More than 3 months’ employment: 5 working days.

More than 6 months’ employment: 7 working days.

However, the above does not apply when work stops owing to a shortage of raw materials or due to weather.

Both parties shall give notice in writing.

2. Employers have an obligation to provide employees with proof of length of service when the employment period ends.

Dismissals shall be based on reasonable grounds. The employer must provide written grounds for the dismissal, if the employee requests it. The grounds may only be requested, if the dismissed has been employed for a minimum of 9 months.

3. If a wage earner, who has worked for the same employer for 6 months consecutively, is rendered unable to work due to a work injury, which is a work injury pursuant to article 9 in the parliamentary act regarding occupational injury insurance, then said employee may not be dismissed until 7 months have passed from when the work injury occurred. However, this is only valid until the wage earner is able to resume work.

Membership Fees, Life Insurance, Superannuation, and Bereavement Pay

Art. 24

1. A 1.5% fee shall be deducted from wages before they are paid, in order to support Føroya Arbeiðarafelag’s important mission.

Employers shall pay this fee to Føroya Arbeiðarafelag, in accordance with crew lists and account statements, at the same time as wages are transferred.

The percentage to which local unions are entitled shall be deducted before wages are paid.

2. For life insurance and other social security items a payment of 1,5% will be deducted from wages before they are paid.

Employers shall transfer this payment to Føroya Arbeiðarafelag, in accordance with crew lists and account statements, at the same time as wages are transferred.

Føroya Arbeiðsgevarafelag shall receive regulations drawn up for the use of the above-mentioned percentage payment.

3. In addition to wages, employers shall pay 11,2% of all A-income to the union’s superannuation fund/scheme. Said percentage shall be transferred to the fund at the same time as wages are transferred.

From May 1, 2025 the payment will be 12,0 % of all A-income.

4. If workers, who have been employed by their current employer for at least 1 year, die while at work, their spouse or children under 18, for whose maintenance they were responsible, are entitled to bereavement compensation for the month in which they died and three months after that.

For hourly-paid workers the bereavment pay is the average wages over the past 12 months, which said wage earner has been working their regular hours. However, the bereavment pay is at least the full pay according to their employment contract, in addition to the average number of possible fixed extra supplements. If no fixed hours are mentioned in the employment contract, then the number of hours shall be based on the work performed prior to the number of hours possibly being decreased due to the worker’s illnes.

For salaried employees the bereavment compensation is pursuant to the employment contract.

Disputes and Arbitration

Art. 25

Should any labour dispute, regarding matters not stipulated in this Agreement arise, the unions and employers’ association shall negotiate the terms and conditions of work and pay in question immediately, before taking the matter to arbitration.

Any disputes regarding the correct interpretation of this Agreement shall be settled by an arbitration committee. Føroya Arbeiðarafelag shall appoint 2 members of said committee and Føroya Arbeiðsgevarafelag shall also appoint 2 members. Said members shall jointly appoint an arbitrator, should they fail to agree on an appointment, the appointment shall be made by the court.

If possible, a decision shall be reached within 3 months of the arbitration commencing.

Superannuation Fund and Increase in Basic Wages

Art. 26

Employers shall pay11,2% of all A-income to Føroya Arbeiðarafelag’s superannuation fund (pay and holiday pay)

from May 1, 2025 the payment increases to 12% of all A-income (pay and holiday pay).

These percentages shall be paid with the wages:

May 1, 2024 the basic wages shall increase by 3,25%

May 1, 2025 the basic wages shall increase by 3,23%

The above increases also apply to special agreements.

Anyone who has reached pensionable age shall instead receive the amount allocated to the superannuation payment as wages. Before the sum is paid any other payments due at the same time as wages shall be deducted, so that the employer’s expense remains unchanged.

The same applies to persons, who pursuant to art. 1, sa. 5. in the Parliamentary Act regarding superannuation, are exempt from paying into a Faroese superannuation scheme.

Please note: On May 1, 2020, these contributions amounted to 16,76% of hourly wages and 6.26% of monthly wages. The contributions paid are: holiday pay supplement, unemployment benefit system contribution (ALS), parental leave insurance (Barsilsgjald), contribution to the Faroese Labour Market Supplemental Pension Fund (Arbeiðsmarknaðareftirlønargrunnurin) and contribution to the Occupational Disease and Injury Compensation Fund (Vinnusjúkugrunnurin). This means that as per May 1 2024 9,59% of all A-income (pay and holiday pay) added to all the A-income of hourly paid workers og 10,54% of all A-income (pay and holiday pay) added to all the A-income for those who have holidays with pay.

May 1, 2025, 10,28% of all A-income (pay and holiday pay) added to the A-income of hourly paid workers and 11,29% of all A-income (pay and holiday pay) added to all the A-income for those who have holidays with pay.

Seniority

Art. 27

After 2 years of service the supplement is 2.50% of basic wages.

After 4 years of service the supplement is 3.50% of basic wages.

After 6 years of service the supplement is 4.00% of basic wages.

After 8 years of service the supplement is 5.00% of basic wages.

After 10 years of service the supplement is 6.50 % of bacic wages.

After 11 years of service the supplement will be 8,0 % of basis wages
The supplement for 11 years of employment will enter into force on May 1^st 2023.

Workers are entitled to transfer their time of service from one workplace to another, provided that they have not been away from their area of work for more than 7 years.

3 years of service supplement shall be paid as of May 1, 2003

5 years of service supplement shall be paid as of May 1, 2005

7 years of service supplement shall be paid as of May 1, 2007

9 years of service supplement shall be paid as of May 1, 2013

11 years of service supplement shall be paid as of May 1, 2017

The supplement is changed to 2, 4, 6, 8 og 10 years of service from May 1, 2022

The supplement is changed to 2, 4, 6, 8, 10 og 11 years of service from May 1, 2023

In order for any new employer to apply the length of service bonus, employees must inform their new employer of any time of service they may have accrued with previous employers when they are recruited, and at the latest when signing the employment contract.

Work on Sundays and Holidays

Art. 28

Work on Sundays and holidays is only permitted when there is a risk of loss to national production.

Sunday and holiday work is only permitted when there is a risk of loss of Faroese production assets.

Membership

Art. 29

1. The parties agree that it is in their common interest that all employers be members of an employers’ association and that all workers be members of general workers’ or women workers’ unions.

The parties of the agreement and the members shall neither directly nor indirectly impede employers or workers to organise in employers’ associations or labour unions.

2. The employers’ association endeavours to inform employers about the advantages of membership in an employers’ association. Similarly, the workers’ unions endeavour to inform workers about the advantages of membership in general workers’ and women workers’ unions. The parties strive to ensure compliance with the agreements in force. Workers and employers have a duty to notify their union or association if there are any non-organised workers or employers at the workplace.

3. If an employer receives a request from a union to organise an information meeting at their workplace, such a request shall be granted sympathetic consideration, in turn the union shall respect that regular work should not be disrupted. Moreover, employers shall allow unions to provide employees, through union representatives, with existing and new information materials about the advantages of joining a union.

Leave for Union Leaders

Art. 30

The chair of Føroy AArbeiðarafelag is entitled to unpaid leave for up to 6 years, and the employer must have a vacancy available when the leave ends.

Cleaning

Art. 31

1. If a union considers that a specific cleaning task at a workplace it organises cannot be completed within the time allocated to this task by the employer, the union may demand that a consultant with relevant expertise be allowed to, on behalf of the union, inspect the facilities and working methods in order to assess the task in relation to the time allowed for it. This also applies if the union deems that the agreed conditions for the cleaning task have not been met, e.g. if the premises are not ready to be cleaned.

Employers are entitled to be represented during such inspections. After completing an assessment the consultant is entitled to demand a meeting with the employer to discuss a potential dispute regarding the time allocated.

If the dispute is not resolved, the union may demand that the matter be settled with Føroya Arbeiðsgevarafelag.

Any and all information arising from such an assessment must be treated as confidential.

2. An additional supplement of 9.15% per hour shall be paid for extraordinary in-depth cleaning.

Art. 32

1. The control measures, which the employer enacts, must be based on safety or operational grounds, and have a sensible purpose.

2. Control measures shall not unnecessarily hinder the employees, and there must be a reasonable connection between the purpose of the control measures and how they are performed.

3. The employer must inform the employees in writing before control measures are enacted.

4. If it is absolutely necessary to enact control measures without informing the employees, then the employer must inform the employees as soon as possible that control measures have been enacted and the reasons for the enactment.

Transport Compensation

Art. 33

In the case of public works taking place so far from the village/town that it is necessary to arrange transport for workers to get there, transport shall be provided free of charge to and from the works and workers shall receive wages for the time spent travelling out to work.

When workers are posted for overnight work away from their workplace, they shall receive full room and board, travel expenses and wages during their time of travel as well as any other compensation stipulated in the Agreement.

When workers are summoned by an employer in a different village/town for work, which is so urgent and so far away that transport must be arranged for the workers, workers shall receive free transport.

However, this does not apply to workers who are already permanent employees of said employer.

Dining Room and Work Clothes

Art. 34

All permanent workplaces with several workers shall, insofar as possible, have dining and changing rooms. These rooms shall be heated.

When special attire is required at the workplace, employers are obliged to provide such attire. This also applies to any attire (footwear and clothing) that the employer requires workers to only use at the workplace. In the latter case, this obligation does not, however, apply until a worker has been employed for 3 months.

Apprentice and Skilled Worker Wages

Art. 35

1. Apprentices under the scope of Faroese Parliamentary Act 94, dated December 29, 1998, on vocational education and training with subsequent amendments or equivalent legislation, and who work in a sector within the scope of this Agreement, shall receive the following apprentice wages:

1^st year of apprenticeship 32% of skilled worker wages

2^nd year of apprenticeship 40% of skilled worker wages

3^rd year of apprenticeship 45% of skilled worker wages

4^th year of apprenticeship 55% of skilled worker wages

Throughout their training, apprentices shall receive for overtime work basic wages + overtime pay in accordance with Art. 8 of the Main Agreement.

2. Skilled worker rates for those who have completed their training in accordance with 35.1. are DKK 164.85 per hour and DKK 28,573.45 per month. Skilled worker wages are subject to indexation just as the basic rate is pursuant to art. 2.

Overtime shall be paid as stipulated in the Main Agreement, percentages shall, however, be calculated based on skilled worker wages.

Valid for apprenticeship agreements made after May 1, 2024.

Apprentices under the scope of Faroese Parliamentary Act 94, dated December 29, 1998, on vocational education and training with subsequent amendments or equivalent legislation, and who work in a sector within the scope of this Agreement, shall receive the following apprentice wages:

1^st year of apprenticeship 35% of skilled worker wages

2^nd year of apprenticeship 40% of skilled worker wages

3^rd year of apprenticeship 50% of skilled worker wages

4^th year of apprenticeship 60% of skilled worker wages

For overtime work throughout all the years of apprenticeship the base rate + overtime rate pursuant to § 8 in the main agreement shall be paid.

4.The occupational pay for those who have concluded their education pursuant to 35. 1. is the base rate in addition to 13,5% pr. hour.

The overtime rate is as stipulated in the main agreement, however, the percentages shall be calculated from the occupational pay.

35 .5. When apprentices are in school then the employer is obligated to pay them wages.

6. If an apprentice is asked to come to work in the school period, then he shall be paid pursuant to article 8 regarding overtime. If the apprentice has been given credits for subjects, then the apprentice shall receive the standard hourly rate pursuant to article 2 for that time, the apprentice will be called to work for those hours when the apprentice is excempt from school.

Protocol

Føroya Arbeiðarafelag/Havnar Arbeiðskvinnufelag/Havnar Arbeiðarafelag/Klaksvíkar Arbeiðsmannafelag/Klaksvíkar Arbeiðskvinnufelag and Føroya Arbeiðsgevarafelag hereby declare that if an act or executive order regarding training/courses, which is not included in the scope of the current apprenticeship scheme provided for by Faroese Parliamentary Act 94, dated December 29, 1998, with its subsequent amendments, enters into force, then the parties shall initiate talks regarding an agreement, which shall stipulate wages for people receiving such training or participating in such a course. Said Agreement would enter into force on the day it is signed and be pursuant to the Main Agreement.

Tórshavn, April 30, 2003.

Art. 36

The parties to this Agreement may sign bilateral agreements, which are limited to specific areas and specific workplaces. These agreements must be made in writing.

Termination of Agreement

Art. 37

This Agreement enters into force as of May 1, 2024 and may be terminated by either party with 4 months’ notice by a May 1, though by May 1, 2026 at the earliest.

Tórshavn tann 9. juni 2024

FØROYA ARBEIÐARAFELAG FØROYA ARBEIÐSGEVARAFELAG

Georg F. Hansen, chair Jón Sigurdsson, chair
Elin K. Sørensen, vice-chair . Høgni Hansen, vice-chair.

Sunrid Vang                         Kristoffur Laksá
Suni Mortensen                       Ólavur Bjarkhamar
Amy Jacobsen                           Jóhanna á Bergi
Maud Túgvustein                         Fróði Magnussen
Marjun . Debes                         Jens Meinhard Rasmussen
                              Odd Eliasen
                              Árni Ellefsen

Protocol on an Inclusive Labour Market

As a starting point, the parties agree that the overarching social responsibility lies with the government and the parliament (Løgting). At the same time, the ties of each individual citizen to the labour market is of great social and psychological importance.

The parties feel that in a well-functioning society all able members of society should have the opportunity to carry out work, within the scope of their capabilities. It is therefore vital that as many people as possible join and remain on the labour market.

The labour market must be flexible, so that as many people as possible are offered employment during their working life.

Based on this, the parties agree that an active senior policy benefits both companies and employees. Employers shall therefore show consideration to older employees by developing a senior policy, where opportunities and offers are treated.

These are to be based on qualifications, tasks, and working hours, so that they are in accordance with the employee’s stage of life and career status, and the status of the company.

Furthermore, the parties agree to promote opportunities for individuals with reduced capacities to participate in the labour market. This may include offering specially adapted employment terms. Under the standard stipulations of the agreement, work should, whenever possible, be carried out under special conditions that meet the needs of such groups.

Salary Agreement

for Salaried employees

between

Føroya Arbeiðarafelag

and

Føroya Arbeiðsgevarafelag

Scope of the Agreement

This agreement covers all permanent employees working within the areas specified in the main agreement and the special agreements between the unions and the association.

Working Hours

The standard working hours are 40 hours per week, with 8 hours per day from Monday through Friday. These hours must fall between 07:00 and 18:00, as agreed upon by both parties at the workplace. A vote by ballot shall determine the working hours, and the same schedule applies to the entire workplace.

Employers and employees at each workplace may agree on a 48-hour workweek, with up to 10 hours per day from Monday through Friday. These hours must be between 07:00 and 19:00, as mutually agreed. A vote by ballot shall determine the hours, which must apply uniformly across the workplace.

Salary Conditions

The base salary for a 40-hour week is DKK 26,597.49 per month. On May 1, 2025, the salary will increase by 3.23% to DKK 28,043.06 per month. This salary is calculated as the hourly wage multiplied by 173.33 hours, which is derived from 40 hours x 52 weeks / 12 months.

The base salary for a 48-hour week is DKK 32,981.01 per month. On May 1, 2025, it will increase by 3.23% to DKK 34,773.52 per month.

This salary is calculated as the hourly wage multiplied by 214.93 hours, which is derived from (40 + 1.20 x 8) x 52 / 12. This means that 40 hours are paid at the standard rate, and 8 hours at standard rate + 20%.

For dirty work, an additional supplement will be paid in addition to the base salary per month, amounting to DKK 74.53 for a 40-hour workweek and DKK 92.42 for a 48-hour workweek.

For work operating forklifts, lorries, and buses, an additional supplement will be paid in addition to the base salary per month, amounting to DKK 303.33 for a 40-hour workweek and DKK 376.13 for a 48-hour workweek.

For work operating crane trucks, tankers, and trucks with trailers, an additional supplement will be paid in addition to the base salary per month, amounting to DKK 930.78 for a 40-hour workweek and DKK 1154.18 for a 48-hour workweek.

The overtime rate is pursuant to the stipulations in § 8 of the main agreement. Overtime pay may, if the employee wishes and the employer agrees, be compensated with time-off in the same proportion as the overtime rate to the standard wage.

The employer decides in consultation with the employee when the compensatory time-off will be taken and notifies in good time, which is usually no later than 4 working days in advance.

Compensatory time-off should generally be taken in either whole or half days and must be taken within two months after the relevant overtime work was performed.

Hours not compensated within this period will be paid as overtime. Such compensatory time-off should not be scheduled on days that are already days-off.

Salaries must be deposited into the employee's account no later than the last working day of the month.

When the salaries in the main agreement are changed, the salaries in this agreement shall change correspondingly.

For cleaning the wage is the basic rate per hour + a supplement of 0,35%.

If an employee, who is employed under this agreement is rendered unable to work due to illness entitling them to sick pay pursuant to the parliamentary act in force regarding sick pay benefits, the employer shall pay the difference between the statutory sick pay and the employee’s usual salary for up to two months.

Employment Contract

Employment contracts shall be issued in accordance with the parliamentary act regarding employment contracts.

Holiday Pay

Salaried employees are entitled to holiday and holiday pay in accordance with the parliamentary act regarding holiday pay in force.

Period of notice

For salaried employees, the period of notice from the employer’s side is as follows:

Up to 6 months of employment: 1 month to the 1st of a month

From 6 months to 2 years: 2 months to the 1st of a month

More than 2 years: 3 months to the 1st of a month

More than 5 years: 4 months to the 1st of a month

The period of notice for the employee is 1 month to the 1st of a month.

Termination must be in writing from both parties.

Union Representative Scheme

The regulations of the union representative scheme, as agreed in the main agreement between the parties, apply to salaried employees covered by this agreement.

Percentage Payments and Superannuation Payments

The employer is obligated to pay the membership fees, superannuation payments, and percentage payments as stipulated in the main agreement in force.

Other Regulations

Where not otherwise stated in this agreement, the stipulations of the main agreement apply to salaried employees, except for the stipulations regarding working hours and salary, unless they are referenced in this agreement.

If an employee has worked continuously for the same employer for two years as an hourly paid worker, the employer must discuss possible permanent employment if the employee wishes.

Absences of less than 14 days do not affect the calculations of the mentioned seniority. Similarly, absences due to illness or other lawful absences are not considered in seniority calculations.

Entry Into Force and Termination

This agreement enters into force on May 1, 2024, and may be terminated with 4 months’ notice to a May 1, but not earlier than May 1, 2026.

Basic Salary and Supplements

This agreement is signed in two copies.

Tórshavn, June 9, 2024

FØROYA ARBEIÐARAFELAG FØROYA ARBEIÐSGEVARAFELAG

Georg F. Hansen, chair Jón Sigurdsson, chair

Elin K. Sørensen, vice-chair Høgni Hansen, vice-chair

Sunrid Vang Kristoffur Laksá

Marjun S. Debes Ólavur Bjarkhamar

Suni Mortensen Jóhanna á Bergi

Amy Jacobsen Fróði Magnussen

Maud Túgvustein Jens Meinhard Rasmussen

Odd Eliasen

Árni Ellefsen

Union Representative Scheme

Workplaces with 3 or more employees may elect a union representative for 2 years at a time.

Only people with permanent ties to the workplace, receiving monthly or hourly wages, may be elected union representatives.

Workplaces with 20 or more employees may also elect a workplace wellbeing representative, paragraphs 10 and 11 herein do, however, not apply to such representatives.

Union representatives must receive necessary information about planned measures that could impact working conditions.
The employer and the board of the organising union shall receive a written notification of the elections of union representatives and workplace wellbeing representatives.

Union representatives represent and negotiate with employers or their representatives on behalf of fellow employees, and they shall do their utmost to ensure that work is carried out in an environment of respect.

Employers and union representatives shall together promote sound cooperation at the workplace.

The aim is to have a union representative on every shift.

The parties agree to strive to ensure the highest possible standards of health, safety, and wellbeing at the workplace.

The aim is to foster safety, wellbeing and development at the workplace, promote social cohesion, as well as enthusiasm among both employees and management for the tasks at hand. For health and safety matters, please refer to the Health and Safety at Work Act in force.

Management and employees shall jointly strive to ensure that the aforementioned health and wellbeing targets are met.

Health and wellbeing policy for workplaces

Employers shall ensure that:

Work is arranged in a manner that minimizes the risk of employee stress.
Measures are implemented to guarantee sound cooperation between management and employees as well as between employees.
There is no bullying at the workplace.
Potential complaints regarding health or wellbeing are immediately registered and dealt with by management, union representatives, and safety representatives.
Any necessary measures are implemented to improve the situation, if compliance with the aforementioned conditions should prove unsatisfactory.
Welfare representatives during working hours are allowed to organise social arrangements without any loss of wages, however, this should be done with as little disruption of work as possible. Such arrangements may also take place outside the workplace.

The union representatives shall convey any complaints or recommendations from their colleagues to their employer or, if they are unavailable, to their representative.

The union representatives have the right to take proceedings regarding health and safety at the workplace, as provided for in Faroese Parliamentary Act 58, dated May 24, 1974.

The union representatives also have the right to take proceedings regarding matters mentioned in section 6.

If, during negotiations, union representatives are unable to reach an agreement with the management at the workplace, which employees can accept, then the issue shall immediately be submitted to the organising union.

Neither the union representative nor the employees may cease work until further instructions are given by the union.

Union representatives are entitled to freely tend to their tasks as union representatives. Union representatives’ duties shall be carried out in such a manner that they have as little impact as possible on production. Management shall receive notice of any absence as soon as possible.

In this case, as when management summons union representatives regarding issues related to workers or working conditions, union representatives shall receive their standard wages for the time they spend away from work.

The term of notice for a union representative is as stipulated in the Agreement pursuant to which the union representative is employed. In addition, the union representative shall receive 1 month´s wages.

Union representatives shall only be dismissed on arguable and demonstrably necessary grounds. In cases of redundancy, the same rules apply to union representatives as to other employees.

Any disputes regarding dismissals of union representatives shall be dealt with in accordance with Art. 21.b. Should any such dispute arise, the unions shall immediately initiate negotiations, before taking the matter to arbitration.

If an employer upholds a dismissal, in spite of the arbitration committee deciding against said employer, then the arbitration committee shall determine the compensation to be awarded to the union representative.

The amount of such compensation shall be determined based on the circumstances of the dismissal, but may, however, not exceed 3 months’ salary in accordance with Art. 3 of the fixed-Salary Agreement for Salaried employees.

Union representatives are entitled to unpaid leave to participate in courses and meetings relating to their role as union representatives. Employers should be notified as soon as possible of any absence.
Deputies for union representatives, who shall substitute union representatives when they are absent, shall carry out their duties under the same terms and conditions as union representatives.

If employees agree to elect a new union representative, then such elections may take place according to paragraphs 1 and 4.
This union representative scheme may only be amended during collective bargaining.
Should any disputes arise regarding this scheme, they shall be settled by an arbitration committee, in accordance with Art. 21.b of the Main Agreement between the unions and association.

Tórshavn, May 6, 2016

Fyri Føroya Arbeiðsgevarafelag
Kristoffur Laksá, samráðingarleiðari
Bergur Poulsen, formaður
Høgni Hansen, næstformaður
Jón Sigurdsson
Atli Gregersen
Fróði Magnussen
Bogi Jacobsen

Fyri Føroya Arbeiðarafelag
Georg F. Hansen, formaður
Elin K. Sørensen, næstforkvinna
Karla Einarsson
Jógvan Páll Johansen
Suni Mortensen
Sunrid Vang
Julia Hansen

Arbeiðarasáttmálarnir á enskum

Sáttmálar á enskum

Union Representative Scheme