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IMF Austrian affiliate wins agreement

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6 November, 2000The Gewerkschaft Metall-Textil negotiates good deal for the metalworking sector.

AUSTRIA: Although difficult and drawn out, the autumn bargaining round, affecting some 145,000 blue-collar and 83,000 white-collar workers in the metalworking, mining, electrical and electronics industry, ended successfully for the IMF's Austrian affiliate, Gewerkschaft Metall-Textil.
Favouring trade union demands was the continued upswing in Austria's economy, which has a projected growth rate of 3.5% for 2000 and an increase in productivity of 2.8%. The union negotiating team also focused on the accelerated pace of inflation in recent months due to higher energy prices -- the annual rate for 2000 is forecast at 2.2%-2.3% -- although employers only wanted to negotiate on the basis of core inflation.
Discussions centered on a scheme for adjusting the pay of blue-collar workers to that of their white-collar colleagues, improvements in part-time employment regulations for older workers, and training measures.
In an unusual move, however, the employers presented a massive package of demands which included reducing the duration of employment for apprentices after training, trimming increases in apprenticeship pay, as well as prolonging the collective agreement on working time flexibility. Also, the employers announced they wanted the sub-unit for the electrical and electronics industry to pull out of the employers' joint negotiating team and negotiate separately.
Final results of the negotiations are:
- an increase in collectively agreed minimum wages of 3.7%;
- an increase in effective wages of 3.4%;
- a minimum pay increase of ATS 650 (Euro 47, US$41);
- on the basis of a works' agreement between management and the works' council, a general pay increase of 3.7% for all employees, fixed with an option to distribute 0.5% individually, with minimum optional increase 3.2%;
- without any works' agreement, an increase of 3.4% in effective wages fixed by the industry agreement falls due;
- an increase in benefits and apprentice pay of 3.4%;
- binding introduction of monthly pay for blue- and white-collar workers;
- regulations for statutory part-time employment for the older workers (full payment of benefits calculated on the basis of prior full-time employment, as well as full payment of seniority allowances and recommendation of an optional return to full employment).
The agreement went into effect on November 1, 2000.