Faroese trade union warns purchasing power continues to decline

A representative of the Faroese trade union federation Verkafólk has accused the chair of the Faroese Council for Economic Affairs of downplaying the ongoing erosion of workers’ purchasing power, according to a report by Kringvarp Føroya.

Sonja Jógvansdóttir, communications officer for Verkafólk, took to social media to challenge recent statements by Johnny í Grótinum, the council’s chair, who claimed that purchasing power had been restored. “There is still far too much missing,” she stated.

Jógvansdóttir highlighted sharp price increases over the past five years, citing official figures: food and beverage prices rose by 27.6%, rents by 42.5%, home maintenance costs by 33.3%, and electricity and fuel by 31.1%. “Purchasing power is worse now than it was before—it hasn’t recovered at all,” she argued.

She criticised the council’s use of “average statistics” that fail to reflect real-life conditions, particularly for low-wage earners. “Wage negotiations alone won’t solve the structural inequalities,” she said, calling for political action to address the gap between the lowest-paid workers and rising living costs.

The Faroese Employers’ Association declined to engage in a “quarrel over figures” but acknowledged the general price trend. “If the debate is about those figures, then it should involve those responsible for price statistics,” said Niels Winther, director of the Faroese Labour Market Authority (Vinnuhúsið).