Austrian manufacturers count the cost of representation

Since April 1998, criticism has mounted from large manufacturers in Austria of the cost of their compulsory membership of the Chamber of the Economy. They would like to speed up reforms, reduce fees by 15% and possibly be exempted from membership altogether.

The Austrian Chamber of the Economy (Wirtschaftskammer Österreich, WKÖ) is engaged in an ongoing reform process with the stated goal of reducing its cost to members. Compulsory membership fees amounted to a total of almost ATS 6,600 million in 1997, ATS 920 million less than in 1994. There are three different kinds of fee: one that is to be paid by all members; one as a percentage of turnover if turnover exceeds ATS 2 million per year; and one as a percentage of the paybill. A reduction in fees by another ATS 450 million is projected over the next three to five years. Various percentages are earmarked for the provincial Chambers, the federal Chamber and the foreign trade organisation.

Criticisms of the pace of reform have arisen since mid-April 1998 from manufacturers. In addition to their compulsory membership of the WKÖ, these companies are also organised voluntarily in the Association of Austrian Industry (Vereinigung der Österreichischen Industrie, VÖI). The few large manufacturers in the country, most of which were previously state-owned, are the most strident in voicing criticisms, since they pay substantial membership fees to both organisations. They want membership fees to the WKÖ reduced by 15% in a three-stage process, in particular cutting the element based on the pa bill. Their criticisms come in the midst of negotiations between the WKÖ and the VÖI about the scope for cooperation and cost reduction, which are scheduled for completion by September 1998. Cooperation might be intensified not only between the two organisations but also between the WKÖ's foreign trade organisation and the large enterprises' own well-developed foreign trade departments.

Some proposals, however, have gone further than this. The VÖI's president has suggested replacing compulsory membership of the WKÖ by an obligation merely to be a member of some kind of representative organisation. This would mean that membership of the VÖI alone would be sufficient. By implication, on the employees' side, trade union members would then also be exempted from having to be members of the Chamber of Labour.

Other large members of the Chamber of the Economy, like the food retailers, have also long been critical of the structure of membership fees. In particular, they see little benefit for themselves in having to contribute to the foreign trade organisation. The WKÖ consists of more than 1,000 legally independent units. The critics are calling for a sweeping reorganisation, and one suggestion is to reduce these units to only three - manufacturing, services and financial services.

At the same time, the large manufacturers are calling for "subsidiarity" in collective bargaining. They would like to settle more issues at plant and enterprise level, leaving only general framework issues to the currently dominant sectoral agreements. The trade unions, however, are likely to be unyielding on this point.