Three Days Remain Until Deadline
05. October 2026Three Days Remain Until Deadline For Terminating Collective Agreements
The Negotiating Committee of the Commercial Federation of Iceland (LÍV) will meet today, Monday 5 October, together with the Negotiating Committee of VR to assess the situation and determine the next steps following the failure of the assumptions underpinning the current collective agreements.
With only three days remaining until the deadline for terminating the agreements, the position is serious.
VR, LÍV and Fagfélögin have repeatedly proposed solutions intended to allow the collective agreements to remain in force. The Confederation of Icelandic Enterprise (SA), however, has so far shown no willingness to address the deterioration in workers’ living standards resulting from the failure of the assumptions on which the agreements were based.
Workers have lost purchasing power
Large groups of LÍV members have received only the wage increases provided for under the collective agreements. As inflation has been considerably higher than those agreed increases, these workers have experienced a decline in purchasing power.
This goes to the heart of the current dispute. The collective agreements were concluded on the basis of certain economic assumptions. When those assumptions fail, workers cannot simply be expected to absorb the consequences.
Municipalities and the Government have already put forward proposals aimed at supporting families with children and those who have been hardest hit. SA, by contrast, has come to the table empty-handed.
‘Having faith’ is not enough
SA has argued that workers should ‘have faith in the project’. But maintaining confidence in the collective agreements requires action from all parties.
VR, LÍV and Fagfélögin have made clear that they want the agreements to remain in force and have put forward proposals aimed at making that possible. SA’s response to those proposals has so far given little indication that it shares the same determination to preserve the agreements.
Workers cannot be expected to carry the burden of failed assumptions alone. If SA wants the collective agreements to remain in force, it must demonstrate that commitment by engaging seriously with proposals that address the loss of purchasing power experienced by workers.
Today’s joint meeting of the LÍV and VR negotiating committees will therefore assess the situation and determine the next steps.
With the deadline now only three days away, time is running short.