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Wage Shame Drives Austrian Metalworkers into Warning Strikes

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16 October, 2011

ICEM Austrian affiliate PRO-GE and GPA djp, the Salaried Employees, Print, Journalism, Paper Union, sent stern warning last week to metal and industrial employers on 2011 wage packages. After second round bargaining failed on 12 October to close pay differences, workers surprised the industry by launching one-to-three hour warning strikes the very next day.

Some 300 Austrian employers witnessed workers’ reaction last Thursday to the bosses’ proposal of a miserly half-percent above the 3.1% offer tabled in the opening round on 4 October. The strikes escalated on 14 October when the unions targeted 60 employers for 24-hour work stoppages.

PRO-GE and GPA djp are negotiating on behalf of 170,000 metal, mining, and energy workers in Austria. Workers and their unions are steadfast that 5.5% is due them on 1 November. Their rationale is that productivity gains combined with healthy balance sheets and a September inflation rate of 3.6% warrants nothing less than the 5.5%.

“We know that the money is there,” said PRO-GE Chief Negotiator Rainer Wimmer.

PRO-GE and GPA djp have laid down a precision perfect strategy of rapid mobilization keyed on bargaining developments, or non-developments as was the case last week. The unions held hundreds of meetings with workers inside companies from 5-7 October after first round talks went nowhere, and then they held 400 mobilization meetings on 10-11 October in preparation for the 12 October second round.

Rainer Wimmer

Going into Friday’s escalated industrial actions, leaders of the two unions offered to continue talks over the weekend but a shell-shocked employers’ association representative would only say that 20 October is the next scheduled bargaining date. That means more job actions are likely to occur early this week, with the ICEM learning that the number of enterprises in which workers chose strike actions last week grew exponentially.

Industrial workers realize that a 5.5% wage increase is fair compensation for inflation and a fair share of the expected 2011 economic growth of 3% that has been brought on by industrial productivity. In 2009, during the height of the financial crisis, metal/industrial negotiations produced a 1.45% salary increase, while in 2010 that increase was 2.45%. Now, Austria is posting strong export numbers and purchasing power during the first half of 2011 is on the climb.

In a joint statement, Wimmer and GPA djp Deputy Federal Director Karl Proyer said, “The fact that sustainable wage and salary increases are economically viable means that we can further support and strengthen purchasing power, thus boost the economy of Austria.”

Just some of the workplaces where 24-hour stoppages took place on Friday include the engine-maker MAN in Steyr, Opel assembly at Aspern Airfield, Opel powertrain at Donaustadt, Schindler-Aufzüge in Vienna, Doppelmayr chair lifts in Wolfurt, Bosch in Hallein, Magna car parts in Steyr, Andritz AG in Graz, and Salinen AG salt mines in Ebensee.