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Deal reached in Austrian electrical & electronics sector

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12 November, 2003High on the list of achievements is an integrated pay system for production workers and non-manual employees.

AUSTRIA: The joint negotiating team of the Austrian Metal and Textile Workers' Union (GMT) and the White-Collar Workers' Union (GPA) has been successful in concluding a new agreement for over 50,000 production and non-manual workers in the electrical and electronics sector.

After what the unions described as "intense negotiations", the following items were among the results:

  • a new, integrated pay system for blue- and white-collar workers;
  • an increase in effective wages of 2.5 per cent over the next 18 months with the higher fixed pay increase coming into effect from the first day; the pay increase falls also due for earners of the collectively agreed minimum wages;
  • a distribution option at plant level whereby companies choose to raise total pay by either 2.9 per cent or at least 2.3 per cent while distributing 0.6 per cent individually;
  • due to the introduction of an integrated pay system for blue- and white-collar workers, an increase in the minimum wage will be postponed until May 1, 2004, when the scheduled wage hike will be at least 2.6 per cent, with an elimination of the lowest wage group.


The integrated pay system was considered the key issue in the bargaining. It will take effect on May 1, 2004, and provide for automatic bi-annual pay rises for both categories of workers, blue and white collar. The distinctions, however, between the two categories will remain, as reflected in separate collective agreements and works councils.

Bargaining for metalworking in the small crafts and trades sector, which opened on October 20 and affects over 10,000 production workers, is continuing.