1999 banking settlement signed

In February 1999, following tough negotiations, a 2.2% pay rise was agreed for 1999 in the Austrian banking sector. Innovatively, it was also agreed that in the year 2000, pay will rise by the rate of inflation plus up to 0.7%, depending on 1999 business results.

On 8 February 1999, agreement was reached to raise pay in the Austrian banking sector by 2.2%, backdated to 1 February (AT9901121F). The agreement, which covers around 70,000 employees, was signed by the Money and Credit Section of the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) and the banking employers' associations grouped in the Credit Section of the Austrian Chamber of the Economy (Wirtschaftskammer Österreich, WKÖ). The parties also agreed to raise pay from 1 February 2000 by the rate of inflation plus up to 0.7%, depending on 1999 business results. Furthermore, it was agreed to raise one of the bonuses by the same percentage.

Whilst the above matters were settled on 8 February, another part of the agreement was not concluded until 23 and 25 February. This covered the inclusion in the supplementary pension scheme of part-time employees in savings and loans and in commercial banks. Special collective agreements for part-timers will now be discontinued in the sector. Negotiations on working time flexibility and on innovative sales channels are scheduled for conclusion by the summer, while those on the reform of pensions and tenure in the savings and loans sub-sector will continue later. There is no deadline.

The settlement followed an unanticipated breakdown of negotiations on 26 January. The trade union had reached a basic understanding with the chairs of seven key banks on 21 January to settle at no less than 2% for 1999, provided that the framework for the following year were also agreed immediately. Negotiations on 26 January were thus focused on the latter requirement. The result was a 2% rise from 1 February 1999 and 0.2% plus inflation from 1 February 2000. At the same time, the employers' negotiating team insisted on discontinuation of the 100% pay premium for overtime worked on Saturdays or at night, and felt unable to agree to any changes in work regulations or any increases to allowances and bonuses. This perceived intransigence, the trade union felt, was unfair. Negotiations were broken off and conferences of works council members were called for 29 January in each province.

After the settlement, protests scheduled for 11 February were called off. Staff meetings at the headquarters of the larger banks had been announced, which would have disrupted business at 08.00 for about an hour. Such measures were last taken in 1993.