Iceland - Unions express serious concerns - March 31, 2026

The Annual General Meeting of VR union, held in Reykjavík on 25 March 2026, expressed serious concern about the state of economic affairs. All indications are that the premises of the collective agreements will fail this autumn, and little progress has been made in overcoming persistent inflation. VR reiterated that inflation is fundamentally a domestically generated problem, rooted in years of mismanagement in housing affairs, profit-seeking by large companies, and tariff increases by the state and municipalities. The Annual General Meeting of Efling union on 26 March also warned of serious consequences as early as this autumn if no action is taken by the Government.

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