A Call on Employers and Government to Engage Constructively
31. August 2026VR, LÍV and Fagfélögin Call on Employers and Government to Engage Constructively
Workers Are Left to Foot the Bill
The negotiating committees of VR, LÍV and Fagfélögin regret that the assumptions underpinning the collective agreements have failed. Workers accepted modest wage increases on the understanding that large companies would exercise restraint in raising prices and that central and local government would keep increases in fees and charges in check. The expectation was that inflation would fall, followed by key interest rates. None of this has materialised. Inflation is rising, while key interest rates have remained high for almost four years. Collectively agreed wages have risen by less than inflation, and housing costs for the majority of workers have increased dramatically over the term of the agreements. Workers are left to foot the bill.
The negotiating committees express serious concern about the position of families with children. Despite repeated promises to protect their interests, charges imposed on families with children have increased while services for children have been reduced. These families are also among those bearing the heaviest burden of high interest rates through mortgages and housing costs.
The negotiating committees reaffirm their strong commitment to finding ways to ensure that the collective agreements can remain in force. For this to be possible, collectively agreed wages must be adjusted to reflect inflation, the number of days off must be increased to compensate for reduced services for children in preschools and compulsory schools, and a genuine cap must be placed on increases in prices, fees and charges. In addition, central and local government must honour their commitments on housing.
The negotiating committees of Fagfélögin, LÍV and VR call on employers and the government to engage constructively and focus on solutions so that uncertainty in the labour market can be resolved as quickly as possible.
Resolution adopted at a joint meeting of the negotiating committees of VR, LÍV and Fagfélögin on 31 August 2026.
