News - 26.03.2026
The AGM of VR approves changes to the VR Sick Pay Fund
The Annual General Meeting of VR, held on Wednesday evening, 25 March 2026, approved a resolution expressing serious concern about the state of economic affairs and calling on the authorities to bring parties together for a solution-oriented dialogue on the way forward in a difficult situation. The meeting also approved amendments to the union’s laws, as well as changes to the operations and services of the VR Sick Pay Fund in light of its difficult financial position.
The meeting was very well attended and discussions were lively. In her address, Halla Gunnarsdóttir, Leader of VR, reviewed the past year of the board’s work and outlined the main proposals for changes presented to the meeting. She discussed the current economic situation, noting that all indications suggest that the premises of the collective agreements will fail this autumn. Wage earners had accepted moderate wage increases in the hope that inflation and interest rates would decline. This has not materialised, as neither companies nor the public sector have upheld their part. “In recent weeks, we have been subjected to relentless rhetoric claiming that the serious situation now facing the economy is primarily the result of wage increases. Some even go so far as to blame increases mandated by collective agreements, but I do not know what kind of economics concludes that 3.5% wage increases can result in 5.2% inflation,” said Halla in her address.
Halla said the VR board is well prepared for upcoming negotiations, whether they take place this autumn or in two years’ time. For collective agreements to hold, it is necessary to support those groups bearing the greatest burdens—families with children, tenants, and people with high housing debt. “We need to see in practice a willingness from companies and the authorities to do everything in their power to minimise the damage,” said the Leader of VR.
Changes to VR’s laws
The Annual General Meeting approved amendments to the union’s laws so that gender quotas in board elections take into account that registered genders are more than two. It was also approved that gender quotas will not be applied in elections to alternate board members, and that the number of alternates will be increased from three to four.
Changes to the VR Sick Pay Fund and the VR Contingency Fund
There was extensive discussion about the Board’s proposals for changes to the VR Sick Pay Fund due to the fund’s deteriorating position. Rising sickness rates in recent years have weakened the fund’s position, and it has now reached the point where it is not sustainable. Changes will be made to the period for per diem payments, which will be shortened by one month and split into two parts in light of recent changes to the social insurance system, as many VR members who receive per diem payments from the fund receive higher payments from the TR pension system. Changes to the payment period from the VR Sick Pay Fund will enable the union to better safeguard their interests. Changes to the calculation of per diem payments were also approved. These changes will take effect on 1 May. Changes were also approved to older members’ entitlement to death benefits, which will lapse two years after the individual became an older member in accordance with the provisions of VR’s laws.
Changes were also made to the VR Contingency Fund to increase flexibility for VR members, who can now use the fund for the benefit of their children.
Resolution of the meeting
The Annual General Meeting approved a strongly worded resolution expressing serious concern about the state of economic affairs and urging the authorities to bring parties together for a solution-oriented dialogue on the way forward in a difficult situation, as it is likely that the premises of the collective agreements will fail this autumn. The resolution states, among other things: “ The Annual General Meeting of VR reiterates that the union is well prepared and ready for collective bargaining negotiations this autumn and will not yield in its fight for the interests of its members. However, the Annual General Meeting considers it worthwhile to explore all possible ways to prevent severe labour disputes. For this to happen, employers and the authorities must assume their responsibility, and this willingness must be demonstrated in action in the coming months. It is most important to support those groups that have borne the heaviest burdens during the high-interest environment in recent years, especially families with children, tenants, and wage earners with high housing debt. Further tightening the pressure on these groups through continued high interest rate policies or cuts to services will achieve nothing in the fight against inflation.“
VR Gold Badge
Three individuals were awarded the VR Gold Badge at the meeting in recognition of their valuable service to the union. They are Sigurður Sigfússon, who served on the board for three decades, Steinar J. Kristjánsson, who served on the board for 16 years, and Auður Búadóttir, who worked for VR for 26 years.
From left: Halla Gunnarsdóttir, Leader of VR, Sigurður Sigfússon, Auður Búadóttir, and Steinar J. Kristjánsson.
