Efling Union achieved a positive financial result of nearly ISK 1.3 billion in 2024. Increased membership fees, strong management leading to lower costs, and solid returns on the union’s investment portfolio are key contributing factors to this excellent financial outcome, benefiting Efling members.
This is evident in Efling’s 2024 annual financial report, presented below. The union’s operating result for the past year was a profit of ISK 1.281 billion, marking an increase of over 79% from 2023, when the surplus amounted to nearly ISK 715 million. Several contributing factors account for this exceptionally strong financial performance.
Increased Membership Fees
Membership fees to Efling increased by 11% compared to the previous year. This growth is mainly due to two factors:
- New wage agreements were reached during the year, leading to higher wages for Efling members and increased membership fee revenues.
- More efficient collection processes also contributed to improved results.
Lower Operating Costs
In addition, operating costs decreased by ISK 26 million from the previous year. This is a remarkable achievement considering persistently high inflation and rising operational expenses. Despite this, the number of staff positions at the union’s office increased, and salary expenses also rose. However, a portion of the wages and related costs in 2024 were due to temporary project staff, whose roles are now concluding.
Looking at key cost categories:
- Benefits and grants, which make up the largest expense for the union, decreased by 4% from the previous year. This reduction is partly due to changes in the rules of Efling’s Sickness Fund, approved at the last general meeting.
- Social activity costs significantly decreased following Efling’s withdrawal from the Federation of General and Special Workers in Iceland.
- Vacation home operations saw a notable cost increase, mainly due to the acquisition and construction of six new vacation homes, as well as major maintenance and renovations of existing properties.
A major factor in the cost reduction between years was the absence of strike actions in 2024, unlike in 2023. Consequently, the cost of the Strike Fund was only ISK 11 million in 2024, compared to over ISK 220 million the previous year.
Strong Investment Returns
Efling’s investment portfolio performed exceptionally well in 2024, generating ISK 860 million in financial income. At year-end 2024, the union’s investment portfolio in securities and deposits was valued at ISK 13 billion, with the majority belonging to the Strike Fund and the Sickness Fund. The portfolio achieved a nominal return of approximately 10% and a real return of around 4.5%, which is highly satisfactory.
Efling’s equity at year-end 2024 stood at nearly ISK 17 billion, reflecting an increase of ISK 2 billion from the previous year.
Efling’s 2024 annual financial report is presented below, having been approved and signed by the union’s board and executive director at a meeting yesterday, Thursday, April 3, 2025. As for now, the report is only in Icelandic, but it will be presented as early as possible in English.
It is worth noting that Efling has been systematically improving the clarity and transparency of its financial reports to ensure greater accountability in the union’s operations. Efling considers such transparency a fundamental part of good governance, providing members and other stakeholders with a clear view of the union’s financial management and resource allocation.