The Worker´s Union (Føroya Arbeiðarafelag) was founded on December 18, 1925, by local workers' and fishermen's unions. The first workers' union was established a few years earlier in Tvøroyri. In Article 1 of the draft law for FA, it stated:

"The name of the association is Føroya Arbeiðarafelag. The association consists of workers' unions and fishermen's unions and other worker organizations that are legally incorporated and pay the stipulated membership fee."

Due to various interests, FA never became the national union for all trade unions in the Faroe Islands. FA became the union for unskilled workers on land. FA was used to conduct collective bargaining negotiations with local employers. Eighteen years after the establishment of FA, the Føroya Arbeiðsgevarafelag (Employers’ Association) was founded, and since then, FA and FAG have negotiated contracts in the private labor market.

It was not always easy to establish workers' unions. The opposition was often fierce from both employers and workers. Many examples exist of workers who led the establishment of unions losing their jobs. In some places, union members were even forced to flee their hometowns. Today, it is seen by many as a given to be a member of a union. However, there are still employers who deny workers the right to join a union, even though this is a human right established by law.