A conversation with an Immigration expert (who wishes to stay anonymous) at the University of Iceland revealed interesting information regarding Icelandic labor unions and their participation in advocating for employee rights. Currently, Iceland tops the list for the most unionized country in the world.

The main purpose of the discussion was to determine whether the delays in work permit processing times for non-EU students represent a temporary setback due to rising international student populations, or whether they signify a larger issue. Although the number of foreign students in Iceland increases each year, very few stay in the country after graduation (Expert). Perhaps it's the weather that keeps them away, but the emigration of international students hints at a larger issue.

One likely factor is the excruciating process of getting a work permit for non-EU students. I discussed these issues with a University professor at Háskóli Íslands and inquired about the dynamics of non-EU students in their class:

“In my class, I have a lot of students who are not from Europe, and all of them are looking for jobs. Some of them are forced to work (hinting at working without contracts) because they did not bring enough or have exhausted their resources. It is painful to see educated minds struggling for jobs and resorting to unhealthy means of support.”

Are the unions working for you?

The labor unions in Iceland are going above and beyond to ensure all employees get the same treatment. They have worked tirelessly and taken swift action at even the slightest hint of exploitation. When the immigration expert was asked about why the labor unions have such strict laws for non-EU students, they replied:

“The students are getting ripped off. Several cases came to light where the students were being paid less than minimum wage or working without a contract or agreement. More than 20% of the employees at Vinnumálastofnun are focusing solely on issues related to student work permits - the government wants educated people to stay.”

From what I know about Iceland, it is as expensive a country as it can get, which makes securing a part-time job as a student more of a necessity than an option. Issues arise for non-EU students when it takes months to process a simple work permit. Each student has the right to work, but exercising that right requires government approval. I don’t need to look very far to prove my point; I have been waiting almost 2 months now for my work permit to arrive. I signed a contract early in October for a part-time job, and I am still waiting as I write this.

Upon inquiring with the Immigration office about the status of my application, it was revealed that the application is processed by the Directorate of Labour, who sends it back once the permit is approved. At this stage, the Immigration office issues a physical permit which the student can pick up before beginning work. “There is no tracking process, you will know once it is complete.” As much as I appreciate the labor unions’ intention of eradicating the exploitation that I mentioned earlier, this is quite a long process to rectify an issue that could be handled otherwise.

Removing barriers through a centralized system

As I understand it, the hourly limit is there to ensure students are paying enough attention to their studies, and the work permit is there to ensure equal wages for employees from different ethnicities. However, non-EU students may be working more hours than the limit - why is that? It is possible that an employer who knows it is hard for non-EU students to start working immediately will take advantage of the situation and hire them below minimum wage, thus requiring the employee to work more hours for the same pay.

Despite the labor issues in Iceland, this issue is not universal. I was in Norway the past year, where I had three active contracts from different employers. It was my responsibility to ensure that I stayed within the 20 hour weekly limit. Once my employers uploaded my working hours and paid me accordingly, the government/authorities would check the bank accounts of students at their discretion to see if the values added up.

Such a system could be beneficial for a country like Iceland where labor demands vary seasonally. Hence, allowing non-EU students to work from day one, just like EU and EEA students. This would minimize delays and work exploitation while ensuring financial security for students and tax revenue for the government.

Here’s the final remark from the expert after a detailed 40-minute discussion:

“The labor unions have a very powerful presence in the Icelandic system. Back in 2006 there was a lot of movement of people from the EU, and most of the rules work in favor of them. This can lead to a feeling of exclusion among people who are not from the EU. The work permit process for non-EU students is not up to scale with the current ideology of retaining educated professionals.”

We concluded that a change in policies regarding work permit for Non-EU students is quintessential to achieving equality among students. A non-EU student/national should not have to apply separately for a work permit, rather be treated the same as any other student from within the EU region. Let’s hope it gets resolved soon, because hiring more people to process the applications faster is not the answer! It’s a vicious cycle.

Managing Work Exploitation: An Expert’s Opinions on Work Permits for Non-EU Students