According to local media reports such as Iceland's national radio station RUV, negotiations with the employer were futile because the level of inflation was higher than expected in the agreement. Three Icelandic trade unions, including Iceland's largest trade union, plan to terminate the collective labor agreement. VR, Iceland's largest trade union, and two other trade unions, Fagfelogin and Lív, have decided to withdraw from the agreement reached with the Federation of Icelandic Enterprises SA. The inflation rate surpassed 4.7% in August, triggering the collective agreement review clause signed in 2024 and originally scheduled to expire on January 31, 2028. The agreement covers approximately 105,000 workers, accounting for about 70% of the number employed in the private sector. The trade unions that withdrew from the agreement covered about half of the workers covered by the agreement.

According to local media reports such as Iceland's national radio station RUV, negotiations with the employer were futile because the level of inflation was higher than expected in the agreement. Three Icelandic trade unions, including Iceland's largest trade union, plan to terminate the collective labor agreement. VR, Iceland's largest trade union, and two other trade unions, Fagfelogin and Lív, have decided to withdraw from the agreement reached with the Federation of Icelandic Enterprises SA. The inflation rate surpassed 4.7% in August, triggering the collective agreement review clause signed in 2024 and originally scheduled to expire on January 31, 2028. The agreement covers approximately 105,000 workers, accounting for about 70% of the number employed in the private sector. The trade unions that withdrew from the agreement covered about half of the workers covered by the agreement.