Authorisation to Terminate Approved
05. október 2026Authorisation to Terminate Collective Agreements Approved
The negotiating committee of VR and LÍV granted the unions’ negotiation delegation unrestricted authority to terminate the collective agreements if no satisfactory response is received from Samtök atvinnulífsins.
A joint negotiating committee of VR and LÍV met, reviewed the situation and discussed next steps. The meeting approved granting the negotiation delegation authority to terminate the collective agreements.
The premises underlying the collective agreements included, among other things, the expectation that moderate wage increases would contribute to lower inflation and lower interest rates. This has not materialised. Inflation has remained persistent and interest rates are still high. Wage earners have borne a large share of the cost in the form of higher housing costs, loan repayments and living expenses, while wage increases under the collective agreements have been lower than inflation. Large groups within VR and LÍV have seen their real wages decline over the past two and a half years, as wages have risen by less than inflation. This cannot be allowed to continue.
The collective agreements must be terminated before 16:00 on Thursday, 8 October. VR, LÍV and Fagfélögin have cooperated in the ongoing negotiations and have now all sought authorisation to terminate the agreements. The unions nevertheless remain prepared to negotiate a realistic and credible response to the failure of the premises underlying the collective agreements, ensuring that wages do not decline in real terms. Wage earners will not bear sole responsibility for the situation; employers and the government must also do their part.