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9 November, 1999The Austrian metalworkers' union successfully negotiated its 1999 autumn pay round in just one week.
AUSTRIA: The IMF-affiliated Metal, Mining and Energy Workers' Union (GMBE) plus the Private Sector Employees' Union (GPA) have successfully concluded their negotiations for the 1999 bargaining round with the trades associations of the Austrian Chamber of Economy (WKÖ). The unions, representing 160,000 blue-collar and 140,000 white-collar workers in metalworking, mining and five other industries, had demanded a pay increase for minimum and real wages as well as for bonuses and apprentice wages, and harmonisation of pay for blue- and white-collar workers.
Though employers used the argument of last year's large pay rises and a forecasted low inflation rate of +0.6% for 1999, a GDP of +2.2% and productivity +1.3%, the unions pointed to the fact that there had been an upswing in domestic demand due to this increase - in real terms - of income.
Details of the new collective agreement, which went into effect on November 1, include:
- a 2.4% increase in the minimum wage for the metalworking sector (new minimum wage equals ATS 15,247);
- a 1.9% increase in real wages;
- an increase, accordingly, of bonuses and apprentice wages;
- the "distribution option" to be repeated (solidarity with the lower paid, especially younger and/or women workers).
As a step towards harmonisation of wages and salaries of blue- and white-collar workers, blue-collar workers will receive monthly payment as of January 1, 2001, and a working group has been set up to further study modernising the system.
Altogether, the quick, successful results of these negotiations indicate that the Austrian "social partnership" still holds true, despite the recent victory in parliamentary elections of the right-wing FPO party, which is pushing for dismantling the existing social dialogue.
Though employers used the argument of last year's large pay rises and a forecasted low inflation rate of +0.6% for 1999, a GDP of +2.2% and productivity +1.3%, the unions pointed to the fact that there had been an upswing in domestic demand due to this increase - in real terms - of income.
Details of the new collective agreement, which went into effect on November 1, include:
- a 2.4% increase in the minimum wage for the metalworking sector (new minimum wage equals ATS 15,247);
- a 1.9% increase in real wages;
- an increase, accordingly, of bonuses and apprentice wages;
- the "distribution option" to be repeated (solidarity with the lower paid, especially younger and/or women workers).
As a step towards harmonisation of wages and salaries of blue- and white-collar workers, blue-collar workers will receive monthly payment as of January 1, 2001, and a working group has been set up to further study modernising the system.
Altogether, the quick, successful results of these negotiations indicate that the Austrian "social partnership" still holds true, despite the recent victory in parliamentary elections of the right-wing FPO party, which is pushing for dismantling the existing social dialogue.