Efling chief says VR is crashing into a wall
Wednesday 7th October 2026 on 19:30 in
Iceland
Sólveig Anna Jónsdóttir, chair of the Efling trade union, said VR’s position did not surprise her and told mbl.is that Efling had always considered it important to keep current collective agreements in force.
One important factor was a pay rise due to take effect in January 2027, when wage-scale rates for manual and low-paid workers are set to increase by 4.99%. Sólveig cited a report by the wage statistics committee saying 58% of workers nationwide are paid according to wage scales. If the agreements had been terminated, she said, the increases would have lapsed and had to be negotiated again.
She also pointed to rapidly rising unemployment among workers in the capital region, particularly among immigrants who belong to Efling. In her view, it would not have been wise to terminate the agreements and prepare for industrial action, risking members ending up in a weaker position.
“At no point did my colleagues and I think that was a good path to take now,” Sólveig said. She added that Efling had set demands that the Icelandic Confederation of Labour subsequently pursued with the government, which she said had produced good results.
VR is still negotiating with the Confederation of Icelandic Enterprise, and the deadline to terminate the agreements expires tomorrow. Sólveig said the outcome did not surprise her. “They are just crashing into a wall, which was always going to happen,” she said, adding: “Everyone knew this except them, apparently.”
Sólveig praised the Icelandic Confederation of Labour for leading discussions with the government on behalf of its member unions. She said the government’s package of measures included important steps for workers, and commended confederation president Finnbjörn A. Hermannsson and its staff for continuing to press for solutions.