Everyone Must Do Their Part
30. April 2026A joint call from VR, LÍV and the Fagfélögin: Everyone must do their part
The Commerce Federation of Iceland (LÍV), VR, and the Fagfélög have joined forces in a new advertising campaign calling on the government, municipalities and businesses to take responsibility for the current economic situation. The campaign comes at a critical time, as collective agreements are likely to unravel this autumn, with unpredictable consequences.
In recent months, wage earners have carried the heaviest burden of a difficult economic climate. Persistent inflation, high interest rates and rising unemployment have put increasing pressure on households. At the same time, prices continue to rise, while wages have not kept pace.
The unions stress that it is now time for other actors in society to step forward. Businesses, government and municipalities all have a key role to play in restoring balance and creating the conditions for stability.
Clear demands for action
The campaign sets out a series of concrete demands:
Lower profit expectations among large companies
Large companies, including wholesalers, retailers and financial institutions, have significant influence over price formation. They are called on to lower their profit expectations for at least two years in order to reduce price pressures and ease the burden on households.
Correct public charges and protect preschools
Municipalities are criticised for recent increases in public charges, particularly for essential services such as heating, electricity and preschool fees. The unions call for these increases to be reversed and for public charges to be frozen for the duration of the next collective agreements. They also stress that municipalities must stop undermining the operation of public preschools.
Stop price increases on domestic food products
The causes of rising prices for domestically produced food must be analysed, and targeted measures taken to halt further increases.
Support for families and housing costs
Those bearing the greatest burden must be supported through child benefits, housing benefits and interest relief. These benefits must keep pace with the cost of living.
Realistic solutions in housing
The government and municipalities must work together to bring stability to the housing market. Speculation in building plots must be stopped, and the non-profit housing association Bjarg must be ensured access to buildable land, both now and in the future.
A shared responsibility for stability
With this campaign, LÍV, VR and the Fagfélög send a clear message: stability will not be achieved unless all parties contribute. Without action, there is a real risk that tensions in the labour market will intensify as the autumn approaches.