Workers Need Meaningful Compensation
22. September 2026Preconditions for collective agreements no longer met – workers need meaningful compensation
Halla Gunnarsdóttir, President of VR, says in a recent interview with MBL, that the situation surrounding the current collective agreements is serious after the conditions underpinning the agreements were no longer met. Trade unions have until 8 October to decide whether to terminate the agreements. She says that unless measures are taken to compensate workers, it will be difficult to continue with the agreements.
Tripartite talks have been taking place between the Icelandic Confederation of Labour (ASÍ), the Confederation of Icelandic Enterprise (SA) and the Government, with hopes that the dialogue will produce concrete results. However, Halla says the Government's budget proposal has complicated matters and that it is difficult to rely on promises of improvements that would only take effect after the 8 October deadline.
Protecting purchasing power and living standards
Alongside the tripartite dialogue, trade unions are in discussions with SA concerning the collective agreements themselves. Halla says little progress has been made and stresses that workers need to see meaningful measures in response to the burden they have carried.
“We have been very clear that workers, who have taken a significant hit while others have failed to meet their commitments, need to be compensated in some way,” Halla says.
Wage increases provided for under the collective agreements have fallen behind inflation. The gap is just under 2.3%, while many workers have also faced significantly higher housing costs. Halla stresses that protecting members’ purchasing power and living standards is a fundamental responsibility of the labour movement.
Wage adjustments and additional leave under discussion
Among the measures put forward in discussions with SA are wage adjustments and additional leave days. The proposed leave is intended to help families cope with reductions in services for parents, particularly in preschools.
Halla says there is little time left before the 8 October deadline and expresses concern about how slowly matters have progressed. Trade unions called for immediate action as early as the spring to prepare for the challenges expected in the autumn, but that call was not acted upon.
“We are in a difficult position and, as things stand, we cannot see a way forward. If nothing is done, we will have no other option than to terminate the collective agreements,” Halla says.
Letters have also been sent to companies and municipalities asking what they are prepared to contribute. According to Halla, some constructive responses have been received, although reactions have varied.
Source: MBL.is