On 19 October 1998, negotiations concluded setting pay increases for 153,000 blue-collar workers in the industrial metalworking sector and 142,000 white-collar workers in industrial metalworking and five other sectors, totalling roughly 10% of Austria's entire workforce. Minimum blue-collar wages were raised by 3.7% to between ATS 89.20 and ATS 150.00 gross per hour, depending on skill level. Actual wages are being raised by 2.9%. In addition there is a lump-sum payment of ATS 2,500 due on 1 February 1999, equal to an increase of another 0.7%. As in 1997, companies will have the choice of concluding a works agreement on a "distribution option" (Verteiloption). This limits the wage increase to 2.7% but the company has to distribute a further 0.5% of the total wages bill to designated groups - preferably young, female or key personnel. Minimum and actual salaries for white-collar workers in metalworking were raised by the same percentage as wages.
The autumn 1998 pay round in the Austrian industrial manufacturing sector resulted in rises in actual gross hourly earnings of between 3.4% and 3.9% for the 250,000 employees in metalworking and between 1.8% and 2.8% for 50,000 white-collar workers in five other sectors. A "distribution option", whereby part of the increase can be allocated flexibly in return for a greater total pay increase, was also agreed.
On 19 October 1998, negotiations concluded setting pay increases for 153,000 blue-collar workers in the industrial metalworking sector and 142,000 white-collar workers in industrial metalworking and five other sectors, totalling roughly 10% of Austria's entire workforce. Minimum blue-collar wages were raised by 3.7% to between ATS 89.20 and ATS 150.00 gross per hour, depending on skill level. Actual wages are being raised by 2.9%. In addition there is a lump-sum payment of ATS 2,500 due on 1 February 1999, equal to an increase of another 0.7%. As in 1997, companies will have the choice of concluding a works agreement on a "distribution option" (Verteiloption). This limits the wage increase to 2.7% but the company has to distribute a further 0.5% of the total wages bill to designated groups - preferably young, female or key personnel. Minimum and actual salaries for white-collar workers in metalworking were raised by the same percentage as wages.
Minimum white-collar salaries in the five other industries - chemicals, glass, paper processing, stone and ceramics, and food - were raised by between 2.1% and 3.2%. Actual salaries were raised by: 1.8% in paper processing and in stone and ceramics; 1.9% or 1.7% plus a distribution option of 0.5% in glass; 2.5% or 2.3% plus a distribution option of 0.5% in chemicals; and 2.0% for monthly salaries below ATS 40,000 and 1.9% above ATS 40,000 gross per month respectively, in food. The lump-sum payment will be made only in metalworking. Apprentices' remuneration is generally being raised by 2.9%. Various supplements and reimbursements are being raised by 2.7%. No agreement was concluded on salaries in the paper-making industry, due to disagreement over working time issues.
The overall wage and salary increases in metalworking are estimated at around 3.6%, which is in excess of expectations (AT9809103F). Workers in companies with a distribution option settled by works agreement will see effective rises of between 3.4% and 3.9%. Other measures also agreed add another 0.1% or 0.2% to the wages bill though not to salaries (AT9810107F). The Federation of Austrian Industry (Vereinigung Österreichischer Industrieller, VÖI) has been very critical of the agreed increases in the light of the current slowdown of the business cycle.
The agreements were concluded between the Metals, Mining and Energy Trade Union (Gewerkschaft Metall-Bergbau-Energie, GMBE), the industry section of the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA), and the industry section of the Austrian Chamber of the Economy (Wirtschaftskammer Österreich, WKÖ). They will take effect from 1 November 1998 and run for 12 months.
Elsewhere, negotiations for the 110,000 wage earners employed by the 16,000 crafts and trades companies in the metalworking sector were concluded on 22 October. They resulted in an increase of minimum wages by 3.7% and of actual wages by 2.5%. Apprentices' remuneration was raised by 2.4%. Coverage of the agreement for the time being is only 70% or 75% but is, as in previous years, expected to rise to 100% over the next few months. The agreement takes effect from 1 January 1999 for 12 months. Negotiations for salary earners in crafts and trades enterprises began on 23 October and are likely to be concluded on the same terms.
AT9810108N (Related records: AT0910107F, AT9801155F)
Eurofound recommends citing this publication in the following way.
Eurofound (1998), Pay round in manufacturing sectors completed, article.
