News - 13.06.2024

Statement from the VR Board on Mass Layoffs

In light of the recent mass layoffs this spring the VR Board wishes to emphasize the following: Losing a job is a serious matter for the individual and their family. Losing one's livelihood can lead to financial difficulties that are hard to reverse, as well as causing mental distress. Therefore, it is the responsibility of company management to ensure that layoffs are always the last resort. Companies must manage their investments in such a way that employees do not have to pay for them with their livelihoods. If streamlining is necessary, other measures should be sought, including revising bonus and incentive systems, dividend payments, and other benefits to management and company representatives.

According to information from the Directorate of Labor, 441 individuals were laid off in mass layoffs in May. Among these, at least 55 were VR members, most of whom worked at Icelandair. VR provides all possible services and assistance to its members who lose their jobs due to mass layoffs.

Specific laws govern mass layoffs, and their goal is to seek ways to avoid mass layoffs or reduce the number of employees affected. The company must inform the employee representative or staff representative about the planned mass layoffs and the reasons for them, giving them the opportunity to present their views and suggestions before a final decision is made. There are cases where this important consultation process is not taken seriously enough, and companies do not listen to legitimate views presented by employee representatives. The VR Board emphasizes the importance of adhering to the spirit of the law, trying to prevent mass layoffs and employee job losses, and ensuring that mass layoffs are never carried out lightly.

12 June 2024
VR Board