On 16 October 1999, after only a month of negotiations, the Union of Metal, Mining and Energy Workers (Gewerkschaft Metall-Bergbau-Energie, GMBE) and the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) concluded a new collective agreement for the metalworking industry with their counterparts in the Chamber of the Economy (Wirtschaftskammer Österreich, WKÖ). The metalworking agreement traditionally sets the pattern for the rest of the bargaining round (AT9909167N [1]). The agreed increases in both minimum and actual wages - 2.4% and 1.9% respectively - are considerably lower than in previous years, which is regarded as a consequence of the high pay increases agreed for 1998-9 (AT9810108N [2]). Nevertheless, the metalworking collective agreement provides real wage increases for the 145,000 blue-collar workers covered, exceeding the expected inflation rate of about 0.8%. The minimum monthly wage now amounts to ATS 15,284 for blue-collar workers in the sector. The minimum and actual salaries of metalworking's 90,000 white-collar workers will rise by the same percentages as blue-collar wages, while the remuneration of apprentices increases by 2.3% on average.[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/autumn-1999-pay-round-starts[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/pay-round-in-manufacturing-sectors-completed
In October 1999, new collective agreements were concluded in several Austrian industrial sectors, covering about half a million employees. So far in the 1999-2000 bargaining round, the anticipated wage moderation has held, but difficult negotiations are still ahead.
On 16 October 1999, after only a month of negotiations, the Union of Metal, Mining and Energy Workers (Gewerkschaft Metall-Bergbau-Energie, GMBE) and the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) concluded a new collective agreement for the metalworking industry with their counterparts in the Chamber of the Economy (Wirtschaftskammer Österreich, WKÖ). The metalworking agreement traditionally sets the pattern for the rest of the bargaining round (AT9909167N). The agreed increases in both minimum and actual wages - 2.4% and 1.9% respectively - are considerably lower than in previous years, which is regarded as a consequence of the high pay increases agreed for 1998-9 (AT9810108N). Nevertheless, the metalworking collective agreement provides real wage increases for the 145,000 blue-collar workers covered, exceeding the expected inflation rate of about 0.8%. The minimum monthly wage now amounts to ATS 15,284 for blue-collar workers in the sector. The minimum and actual salaries of metalworking's 90,000 white-collar workers will rise by the same percentages as blue-collar wages, while the remuneration of apprentices increases by 2.3% on average.
As in previous years, a "distribution option" (Verteilungsoption) in the metalworking deal allows for more individualised payment arrangements in companies. On the condition that general wages and salaries are increased by at least 1.7%, up to 0.5% of total paybill may be allocated to certain groups within firms, such as young or female workers. Though the "distribution option" was applied relatively little last year (AT9902132N), it is perceived as success by the negotiating parties. The model of increased working time flexibility (Erweiterte Bandbreite) agreed in metalworking in 1997 (AT9710138N), which was due to expire by the end of 1999, has been prolonged for an unlimited period. Weekly working time may thus vary from 32 to 45 hours, with use of a "time account" required from the 41st hour.
Following the settlement in metalworking, global negotiations concluded successfully for a further 42,000 salary earners in the other five industrial branches - chemicals, food, glass, paper processing and stone/ceramics. Actual salaries will increase in these branches by 1.4%-1.8% and minimum salaries by 2%-2.4%. Remuneration of apprentices and their expense allowances are raised by 2.3%, except in stone and ceramics, where allowances rise by only 2%. The bargaining round in the paper processing industry - where no salary agreement was concluded in 1998 due to disputes over working time - brought about some distinct outcomes. Employees will receive a minimum salary increase of 2.4% and an actual salary increase of 1.9% in 1999-2000, followed in 2001 by further increases of 2.5% and 2% respectively. The agreements for paper processing, chemicals and glass also include a "distribution option". All these collective agreements come into effect on 1 November 1999. In addition, the negotiators agreed to establish a working group on industry-related training covering several branches, in order to improve the qualifications of employees. Subsequently, another working group will discuss new forms of payment systems in the metalworking and chemicals industries.
The next crucial pay round is taking place in the public sector, where the Union of Public Employees (Gewerkschaft öffentlicher Dienst, GÖD) and government representatives have started negotiations. The union is demanding pay increases of 2.6% and appealing to the government to give special consideration to the low-paid. This claim is regarded as rather high in comparison with the moderate outcome in metalworking, and would involve additional costs of more than ATS 3 billion for the government. Negotiators for the current caretaker government have already rejected union demands, since no political party is willing to place further costs on the federal budget - especially in the context of difficult negotiations over forming a new government (AT9910202N).
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Autumn bargaining round underway, article.
