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Figure 1. Regular wages of women as a percentage of regular wages of men at Alcoa Fjarðaál.


Notes to Figure 1:
  • Managers contains both managing directors and middle managers. Women are only six, thereof two in upper management. Therefor they weigh high in the average. In 2016 the number of women in middle management increased lowering the upper/middle management ratio.
  • The enterprise agreement states that women and men should have comparable wages however women have on average shorter period of employment than men and are therefore in lower wage category which explains the wage difference in this group.

Figure 2. Regular wages of women as percentage of regular wages of men at Landsvirkjun

Notes to Figure 2:
  • In 2018 there were no women craft workers and no men clerks and therefore these categories are not displayed on the graph.
  • Changes to occupational group classification in 2013 for managers. Then, experts divided into three categories and the ratio was 87%, 109% and 102%. The table includes the middle number. The classification is now based on Statistics Iceland's job classification.

Updated: May 7, 2020
Source: Alcoa Fjarðaál (2009 -2020), Landsvirkjun (2009 - 2020)

Metrics, Targets and Monitoring Protocol

What is measured?

Ratio of female to male employee salary by job classification measured by the regular wages of women as a percentage of the regular wages of men at Alcoa Fjarðaál and Landsvirkjun, sorted by job classification (project effect: direct).

If the ratio is 100%, that means equal pay. Regular salary means the paid sum for the negotiated work hours, irrelevant whether it is daytime or shift work. The salary includes all kinds of premiums, bonuses and cost refunds, such as regular overtime, which is calculated in every disbursement period. The calculation excludes piecework pay, benefits, car use or other irregular payments. Regular pay is calculated if paid hours (daytime or shift work) counts for at least 90% of full daytime work requirements. If paid hours in daytime or shift work counts as 90-100% of daytime work requirements, they are converted into a full time job. Part time pay is converted into full time salary. Salary for people who work 3 months or less is not taken into account.

Monitoring Protocol

The human resources departments in Landsvirkjun and Fjarðaál collect this information.


Gender wage ratio at:

  • Landsvirkjun: Equal
  • Fjarðaáli: Equal
Possible countermeasures

Changes of indicator

This indicator was originally number 2.1. It was then named Gender Balance in Alcoa and Landsvirkjun Workforce and can be found under that number in documents of the project from 2005 and 2006.

The indicator number has been changed twice.

Table 1. Changes to name and number of indicator
Year Nr. Indicator name
2020 4.1.5 Gender wage ratio
2007 1.1b Gender Balance in the Workforce


Table 2. Regular wages of women as percentage of regular wages of men at Landsvirkjun and Alcoa Fjarðaál
  Alcoa Fjarðaál Landsvirkjun
Managers 95% 104%
Professionals 93% 101%
Specialists   77%
Associate professionals 86%  
Clerks 88%  
Craft workers 71%  
Plant and machine operators 112%  
Non-Specialists   111%

Rationale for Indicator Selection

Sustainability Indicator 1.1 aims for a gender-balanced workforce. The Central East Region has suffered from out-migration of younger members of the community who are drawn to the ‘pull' of educational and employment opportunities offered by the Capital Region. Additionally, young workers, particularly females, are influenced by the ‘push' of low paying jobs in traditionally male-dominated sectors such as agriculture, fishing, and fish processing. Such an imbalance in gender is not indicative of a stable community. The establishment of the Kárahnjúkar and Fjarðaál projects may assist in reducing the ‘push' from the Central East region and is likely to attract individuals to the area for its work opportunities.

From phase I/II report on indicators and baseline from April 2005