Unions propose works council amendments

In late 1999, Austrian trade unions presented proposals for legislative amendments aimed at strengthening the rights of works councils. Because of changing conditions at work and the increasing pressure on works councils arising from economic internationalisation and the partial transfer of bargaining issues to the company level - due to intensify following the formation of a new centre-right government in February 2000 - the capacity of works councils is becoming a key issue for unions.

Austrian legislation, in particular the Works Constitution Act (Arbeitsverfassungsgesetz), provides for a variety of employee representation rights at the plant level, primarily through works councils. According to the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB), an improvement of the legal position of works councils is necessary to make this representation more efficient in the future. In this context, the unions have made the following demands:

• improvement of works councils' competence for monitoring developments. Management should be obliged to provide more extensive information to works councils, such as copies of every employment contract;

• reduction of the workforce-size threshold beyond which works council members are entitled to time off to perform their duties;

• prolongation from one to four weeks of the time limit for works councils to contest dismissals;

• an obligation on management to inform works councils about mutual cancellations of employment relationships. Notice of such terminations should be submitted to works councils in advance;

• inclusion of "atypical" forms of employment - such as "free service contracts" (freie Dienstverträge) and "work contracts" (Werkverträge) - in company representation arrangements;

• passive voting rights (ie the right to vote in works council elections) for foreign workers (AT9802168N);

• extra paid leave for works council members. Increasingly complex and wide-ranging responsibilities necessitate additional meetings above the workplace level, with European Works Councils especially facing difficulties related to cross-border cooperation and coordination;

• improvement of various aspects of additional training leave for representatives. These include paid training leave for works council members in companies with less than 20 employees, prolongation of the duration of training leave from three to four weeks, and training leave for reserve members of works councils;

• improvement of the legal provisions for youth councils, including prolongation of training leave from two to three weeks, training leave for reserve youth council members, and voting rights for all apprentices regardless of their age;

• improved employment protection standards for works council members; and

• a right of access to companies for union representatives in relation to works council elections.

These demands form part of ÖGB's "memorandum for a future government" of 17 November 1999, issued during the negotiations over a new government coalition following the October general election. A new government made up of the populist Freedom Party (Freiheitliche Partei Österreichs, FPÖ) and the conservative People's Party (Österreichische Volkspartei, ÖVP) was formed in February 2000, and its far-reaching reform plans include measures aimed at achieving a shift from multi-employer to single-employer bargaining and representation (AT0002212F). ÖGB's proposals have thus acquired increased importance. The government's proposed shift concerns important issues in collective bargaining, such as working time regulations and opening/working hours, and is deemed to imply a substantive change in the current bargaining system. If multi-employer bargaining is restricted, negotiations would be conducted by works councils and/or individuals – a tendency which would both weaken the position of the unions and put increased demands and pressure on works councils.

Because implementation of the ÖGB's demands would require an amendment of the Works Constitution Act, union officials expect confrontations with the government.