News - 13.05.2025

Housing Issues at the Forefront in Meeting Between Leader of VR and Prime Minister

The leader of VR, Halla Gunnarsdóttir, emphasized the importance of ensuring that wage earners have access to affordable housing during her meeting with Prime Minister Kristrún Frostadóttir today, Tuesday, May 13. The objective of the meeting was to present the union's key focus areas regarding the conditions of wage earners and families in Iceland.

Halla stated that housing is one of the most pressing labour issues for wage earners in Iceland, and that it is long overdue to stop treating housing as a commodity; a roof over one’s head must be regarded as a human right. The majority of wage earners face excessive housing costs, whether they own or rent. Measures must be taken to regulate the rental market and ensure that the burden of economic instability is not placed on renters and borrowers.

Halla also expressed the union’s opposition to the government’s proposals to shorten the period of unemployment benefits, as well as ideas to increase the authority of the State Mediator. Such plans require formal consultation with the labour movement, and VR cannot accept curtailing the rights of wage earners or weakening their position in the labour market.

At the conclusion of the meeting, Halla described the conversation as positive and constructive. “The Prime Minister has a clear understanding of the urgent challenges we face concerning the terms and conditions of wage earners. She is also aware of the importance of working in good cooperation with the labour movement. VR will, as always, hold the government to account and ensure it fulfills the promises made in connection with collective agreements and bases its decisions on public interest—not special interests.”

See the briefing note from VR that was presented at the meeting. (Icelandic only)