The party was founded in 1939 as "Vinnuflokkurin". The party split from the Self-Government Party over land reform, and maintained a policy of economic liberalisation and social conservatism, with the party's support based in the fishing industry and private business. The party's economic programme was one of exploitation of local resources to reduce dependence on Denmark, and success of the Sjóvinnubankin was utilised by the party to demonstrate that the Faroes could be economically self-sustaining. The party was given its current name in 1940. In the 1943 Faroese election, the party won 12 out of 25 seats: one short of an overall majority.