From Iceland — Do Shit: Figuring Out Labour Unions

Do Shit: Figuring Out Labour Unions

Published July 15, 2024

Do Shit: Figuring Out Labour Unions
Photo by
Art Bicnick/The Reykjavík Grapevine

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If you are working in Iceland you’re likely aware of the existence of labour unions. In fact, one of the first on-boarding questions you’re likely to be asked by a new employer is “what union are you with?” as they’ll need to direct monthly dues to the right place. But what are unions, what purpose do they serve in Iceland and what benefits do workers have for being members?

“Unions were originally created by activists that banded together to fight collectively for better working rights,” says Gabríel Benjamin, an emergency medical dispatcher at 112 and a board member of the VR trade union. While trade unions today have an appearance of being tame and civil, all of the rights we now enjoy have come from this primordial struggle — the union spirit is still strong.”

Beyond the benefits of having a body negotiating wage increases, the benefits of being a  member of an Icelandic union are many — even if it may not seem like it for those unfamiliar with the system.

As Gabríel explains, the role of Ieland’s trade unions is to “safeguard the rights of its members as well as to reach collective wage agreements that determine minimum rights in the labour market. Daily trade unions,” he continues, “provide their members with information and assistance and help them make sure rights such as minimum wages, sickness rights, termination notice, and contracts are being enforced correctly. Unions also come to the aid of those who should be members and are exploited in the workplace, such as victims of human trafficking.”

While in other countries “union” is a bad word and unionising is optional from one workplace to another, here in Iceland there is more of an obligation to be a dues-paying union member. According to law 55/1980, every employer is required to dock a portion of their employees’ payslips to pay into union dues and the respective pension fund. “While individuals can opt to not be full members of the union, they are still required by law to pay the appropriate union dues because they enjoy the benefits of the appropriate collective wage agreement,” Gabríel explains.

Beyond the benefits of having a body negotiating wage increases, the benefits of being a member of an Icelandic union are many — even if it may not seem like it for those unfamiliar with the system. Employees can reach out to their unions for advice on potential mistreatment or conditions in their workplace, or turn to their union to dip into the sickness fund in the event of a long-term illness that hinders one’s ability to work.

“When rights are not being honoured the unions can represent their members, going so far as litigation against the employer if no agreement is reached,” Gabríel says. “These services are usually free of charge for the union member.”

Unions also extend such benefits as funding for courses, subsidising the purchase of subscription eyewear, and offer deals on summerhouse rentals and possibly even flight vouchers (depending on which union you’re a member of).

“I encourage you to look into your local union, reach out to them if you have any questions or want to learn about your rights, offer suggestions and feedback, and take part,” says Gabríel. “We need more immigrants on our councils and on our boards. We need your ideas and energy. We need renewed solidarity, because nobody can do this by themselves — the union makes us strong.”


Follow the Grapevine’s Do Shit series to collect tips and tricks for navigating life and bureaucracy in Iceland.

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