News - 25.06.2025
Unemployment Benefits Discussed at Meeting Between the Leader of VR and the Minister of Social Affairs
The Leader of VR, Halla Gunnarsdóttir, emphasized the union’s opposition to government plans to shorten the unemployment benefits period at a meeting with Inga Sæland, Minister of Social Affairs and Housing, today, Wednesday, 25 June 2025. The purpose of the meeting was to present the minister with the main priorities of VR’s board regarding housing and social issues affecting wage earners and their families.
The Board of VR and the Consultative Council of the union strongly criticize the government's plans to reduce the unemployment benefits period by up to a full year. Halla urged the minister to abandon these plans and pointed out that the union cannot accept that the rights of wage earners be curtailed in this way. Although unemployment is low in Iceland, in a volatile economic environment, people’s legal status must be clear. Improved activation measures can be implemented without reducing the duration of unemployment benefits.
Housing issues were also discussed at the meeting, which, in the union's view, are by far the most important matter affecting the interests of wage earners in the country. The highly political interest rate policy of the Central Bank has damaged the position of wage earners and placed the burden on the shoulders of debtors and renters. The legal status of renters must be improved, and regulations must be imposed on that market. Halla pointed out that a top priority for the government must be to ensure that wage earners and families have access to housing on fair terms, whether for rent or purchase.
Halla also discussed proposals to increase the powers of the state mediator, which would undermine the collective bargaining rights of wage earners. Changes to labor market legislation must be developed in cooperation with the labor movement.
At the conclusion of the meeting, Halla said the meeting had been good and that the minister had shown understanding of VR’s viewpoints. “It is clear that the minister cares about people’s conditions and has no intention of supporting any changes that undermine the rights of working people, including regarding the powers of the state mediator. We in VR still believe that no convincing arguments have been presented for restricting the rights of wage earners to unemployment benefits, and we will continue to pursue this issue, which affects numerous VR members. We will also continue to follow up on housing issues with great determination, as they affect the living conditions of all our members.”
