News - 02.05.2025
Iceland needs a strong labour movement
For over a century, wage earners in Iceland have organized marches and outdoor rallies on the occasion of 1 May, International Workers’ Day. We celebrate what has been achieved and strengthen solidarity to tackle the greatest challenges of our time. Before the economic crash, the notion grew stronger that the struggle for workers’ rights was somewhat old-fashioned and not cool. The labour movement itself succumbed to “modern times” and even considered cancelling the May 1st march, instead organizing festivities with an emphasis on celebration rather than demands. However, the crash revealed how crucial a vigorous fight for the interests of the public is — and trade unions must lead that fight. Yet they are fully capable of both demanding and celebrating at the same time, and have often done so successfully!
Quality of life came through collective bargaining
The collective bargaining efforts of Icelandic trade unions have laid the foundation for the quality of life in Iceland. Thanks to strong trade unions engaged in active wage negotiations, ordinary people gained weekends off, summer vacations, coffee breaks, defined working hours, sick leave rights, pension rights, and parental leave, to name just a few. It was collective bargaining that allowed more people to survive on their wages, maintain a home, and even enjoy life in between. This is how the Icelandic middle class came into being. Strong trade unions are also to thank for the fact that Iceland has been among the most successful countries in protecting workers’ interests from predatory profit-seeking forces. But storm clouds are gathering, and wage earners have every reason to protect their rights for the future.
Across Europe, a systematic dismantling of trade union work has been underway. Their position has been deliberately weakened and union membership has declined. Many people believe they are better off outside trade unions, but in the end, that belief often proves short-lived. In countries where unions have been broken, wage earners have lost out. They produce more, but receive less in return. Inequality increases, wages decline, the super-rich get richer, working conditions worsen, and income security and social safety become things of the past. More and more people live in poverty despite working full-time, while support for political extremist forces grows alongside.
Yellow unions gaining ground
Here in Iceland, various attempts to undermine trade unions are evident, such as unfounded ideas about increasing the powers of the state mediator and the irresponsible use of lockouts. Yellow unions have also been gaining ground, most notably Virðing, Íslenska flugstéttafélagið and Félag lykilmanna. The latter targets VR members with promises of the same rights for less money, engaging in aggressive marketing where it presents itself as an “independent” and “modern” trade union. But in reality, Félag lykilmanna does not meet the basic requirements expected of trade unions. The union doesn‘t attend to the most important task of all trade unions — collective bargaining —and does not address matters of vacation rights, labour rights, or professional training. Self-appointed „key workers“ reap the benefits of the rights won through the struggles funded by VR members, yet contribute nothing and instead undermine the shared struggle. It is, however, that shared struggle which has laid the foundation for quality of life in Iceland.
So far, wage earners in the Icelandic labour market have not been easily swayed by yellow unions, and there is reason to specifically warn VR members against the empty promises of Félag lykilmanna. A lower membership fee quickly and inevitably turns into lower wages and poorer conditions once organized collective bargaining is abandoned. There are plenty of precedents — and they must be heeded.
The road ahead
The labour movement in Iceland faces many important challenges in the coming months. Safeguarding a strong movement is crucial, but it is also vital to advance the fight for workers’ rights and public interests. Everyone here should be able to live off their wages, and housing costs are the key factor. There is no reason to continuously shift the burdens of an unstable economy onto the shoulders of wage earners; it is the role of the labour movement to stop such an assault, whether it comes in the form of high interest rates or increased fees. Technological changes are transforming work, and it is up to trade unions to ensure that the benefits of new technology reach wage earners — for example, in the form of shorter working hours. Furthermore, the conditions of families with children must be addressed decisively, and we must continue building a society where all working people can enjoy a good balance between work and private life.
Today, let’s sharpen our demands and strengthen our solidarity! Let’s march in the May Day parade and participate in the outdoor rallies.
Happy May Day!
An article by Halla Gunnarsdóttir, Leader of VR, on the occasion of International Workers’ Day, May 1st, 2025. The article was first published in Morgunblaðið.
