Halla Gunnarsdóttir

Union Activities and Other Work Experience

I have been a member of the VR Board since 2023 and previously served as the Managing Director of ASÍ. I have diverse work experience, including specialist, office, and retail jobs, and have worked in Iceland, the United States, and the United Kingdom. I was a journalist for six years, mainly at Morgunblaðið, and I have worked for two governments, giving me valuable insight into how to influence public decision-making in favor of wage earners.

I have always been active in union and social affairs, serving on the board of the British think tank New Economics Foundation and, for a time, as Vice Chair of the Consumers' Association of Iceland.

If someone sends me a poem, I reply in verse, and when my home is quiet, I sometimes compose poetry. I have published three poetry books, one academic book, and a biography of Guðrún Ögmundsdóttir.

Key Focus Areas

The most important role of the VR Chairperson is to improve the wages and conditions of VR members through collective agreements. Whether members work under pay scales or negotiate their own salaries, collective agreements form the foundation of both wages and rights. At this moment, the task is, first, to follow up on current collective agreements and ensure housing development for people and loan terms comparable to those in the Nordic countries.

Second, we must immediately begin preparing for the next collective agreements, ensuring that VR enters negotiations strong, united, and ready to fight for the shared interests of all members. VR is a large, powerful, and progressive union, and it is important to continue strengthening services for members. I have focused on family issues, including the introduction of a parental grant while ensuring an open and democratic discussion on the union’s grant system.

VR members are valuable, and this is our union.

VR Members Are Valuable

Like many VR members, I received a letter from my bank at the beginning of the year informing me that my fixed interest rate period had ended. I was given the choice to refinance my loans or take on nearly 200,000 ISK in increased monthly payments. A quarter of mortgage borrowers are in the exact same situation this winter, though their payment increases vary. Many have switched to indexed loans, and the Central Bank and financial institutions tirelessly claim that households are financially sound because their assets have increased. But rising property values do not help ordinary people make ends meet—except in the sense that their property taxes go up. We are facing a reality where middle-income earners in decent jobs can struggle at the end of the month if their washing machine breaks, as every last króna is already swallowed up by the bottomless pit of interest payments and inflation adjustments.

The Bill Is Sent to Wage Earners

Somehow, we have accepted a system where financial institutions and wealthy individuals profit in good times and continue to profit in bad times. Meanwhile, the bill is sent to wage earners, who are expected to pay higher interest rates, higher rents, higher taxes, and more for services and necessities. As long as this political imbalance remains unchallenged, wage increases from collective agreements will be of little help to workers.
The current agreements involved significant risk for workers, as they included modest wage increases during a period of high inflation. The expectation was that interest rates would be lowered almost immediately, but the wait has been long, and interest rates in Iceland remain two to three times higher than in the other Nordic countries.
Young people are struggling to secure housing, and renters hoping to enter the housing market are running a marathon where the starting line keeps moving further away.

Preparation for Wage Negotiations Begins Now

The most important task of VR’s leadership is to improve the wages and conditions of its members. VR members are valuable, and this must be reflected in collective agreements.
However, to ensure that these improvements are realized, VR must use its strength to counteract political decisions deliberately designed to shift burdens onto the shoulders of workers. This has been a key focus of mine since joining the VR Board. Sometimes, it only takes a small stroke of a pen to destabilize people’s financial security—whether through excessive increases in preschool fees or poorly thought-out taxation on vehicles.

If I am re-elected as VR Chairperson, preparations for the next collective bargaining negotiations will begin immediately after the union’s Annual General Meeting in March. The goal is for VR to enter negotiations united and well-prepared to secure agreements that serve the majority of our members. This work requires careful planning, expertise, and strategic thinking. At the same time, the Chairperson’s role is to ensure that the current collective agreements are upheld. A key part of this is holding the government accountable for its promises—especially regarding housing development and closing the gap between parental leave and preschool access once and for all.

Moving Forward for VR

We are living in extraordinary times. In many countries, organized labor movements have been dismantled, and we are seeing similar attempts in Iceland. Examples include the establishment of fake unions, the use of lockouts, and baseless proposals to increase the power of the state mediator. This is deeply concerning. In countries where the labor movement has been dismantled, working people face far worse conditions, greater financial insecurity, and even poverty despite full-time employment.

Fighting back against attempts to weaken unions, while also moving VR forward into the future, requires hard work and political experience. Many jobs will undergo significant changes due to automation and new technologies. Our goal should be to ensure that technological advancements lead to better and more enjoyable jobs with shorter work hours—while maintaining financial security and quality of life. This is a long-term project that requires constant attention. VR is the largest union in Iceland, and among our members are people from different income levels, 128 nationalities, and various gender identities. We perform valuable work and share a strong collective interest in robust collective bargaining and progress for working people.

The leadership of VR must represent and work for the union’s diverse membership. The Chairperson’s role is to bring together different perspectives and fight for the shared interests of all members.

I am asking for the support of VR members to continue leading our union—because I’m just getting started!