Gächter, August
Territorial Employment Pacts in Austria: the state of play
27 juni 1999
Territorial Employment Pacts (TEP s) are an EU initiative aimed at
stabilising local and regional labour markets in selected European regions by
promoting consensus and cooperation between all relevant local actors. In
mid-1999, there are seven TEPs operational in six of Austria's nine
provinces. The agreement on an eighth pact is expected by September 1999. In
the two remaining provinces, Burgenland and Styria, TEPs are under
preparation. Burgenland, which stretches along the Hungarian border, is the
poorest province and has the highest unemployment rate, whilst Styria has the
highest rate of long-term unemployment outside Vienna. The first three TEPs
were initiated in the three westernmost provinces, all of which have
relatively low unemployment. However, all three experienced a surge of
long-term unemployment in 1997. The fourth, also initiated in 1997, covers
Vienna [1] where unemployment is above the national average. These four pacts
will all expire at the end of 1999 but will be renewed. The fifth pact, also
in Vienna, and the only one linked explicitly to Austria's National Action
Plan [2] (NAP) for employment implementing the EU Employment Guidelines [3]
(AT9901120F [4]), took effect in autumn 1998 and will run until the end of
2004. The shortest-term pact covers Upper Austria- it is limited to the
calendar year 1999 but will also be renewed. The TEP in Carinthia is
scheduled to run for four years from the beginning of 1999 to the end of
2002. The TEP for Lower Austria will run from the beginning of 2000 until the
end of 2004.
[1] http://europa.eu.int/comm/pacts/en/list/63.htm
[2] http://europa.eu.int/comm/employment_social/empl&esf/naps99/napau_en.pdf
[3] http://europa.eu.int/comm/employment_social/empl&esf/empl99/guide_en.htm
[4] www.eurofound.europa.eu/ef/observatories/eurwork/articles/labour-market-undefined/national-action-plan-on-employment-poses-challenges
Social partners cooperate to improve Vienna's labour market
27 juni 1999
Over the two-year period 1997-9, the social partners in Vienna and its city
government have joined forces to develop a more innovative approach to
Austria's most problem-ridden and least responsive labour market. In 1997 it
contained more than half of the unemployed people whose unemployment lasted
longer than 12 months and 42% of those whose unemployment lasted more than
six months. The number of people registered as unemployed at some time over
the year had risen by 1.4% over the 1996 level and made up 23% of the
Austrian total, roughly equivalent to the capital's share in employment.
However, the average number of people registered as unemployed stood at 29%
of the Austrian total. Employment kept being created outside the city limits,
centred in particular on the airport and the shopping and business parks.
Industrial employment was continually being relocated to "greenfield" sites.
No end to these structural disadvantages seemed in sight.
Wage and salary earners remain unequal
27 juni 1999
On 15 June 1999, the Austrian government failed to approve a legislative
proposal for submission to parliament that would have removed the remaining
legal differentiation between wage earners and salary earners (AT9801160N
[1]). The two main distinctions that remain between them relate to
compensation during sick leave and regulations governing dismissal
(AT9903138N [2]). The Austrian Trade Union Federation (Österreichischer
Gewerkschaftsbund, ÖGB) and the Austrian Chamber of the Economy
(Wirtschaftskammer Österreich, WKÖ) had failed to resolve their own
differences on the question at a meeting on 9 June. WKÖ had submitted a
number of counter-demands in exchange for harmonisation, including:
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/unions-seek-further-harmonisation-of-labour-law
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/labour-contract-act-under-negotiation
Half-time scheme introduced for older workers
27 mei 1999
On 28 May 1999, the Austrian social partners agreed on the details required
to unblock implementation of a half-time work scheme for older workers, in
which the wage is topped up from unemployment insurance funds to 70% of the
previous full-time wage (AT9711145N [1]). There will be two versions of the
scheme, which it is hoped will attract 2,500 participants.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/part-time-work-for-older-workers
Parental leave reform slow to come
27 mei 1999
It seems increasingly unlikely that the Austrian coalition government will be
able to agree on parental leave reform before the general elections due on 3
October 1999. The issue of flexible parental leave in the period until the
child turns eight years old, as required by the EU Council Directive
(96/34/EC) on parental leave [1] (AT9901128N [2]), is being entirely swamped
by disagreements between the two government coalition partners over a wider
reform. The Austrian People's Party (Österreichische Volkspartei, ÖVP) has
made the demand for parental leave benefits for all mothers a central plank
of its 1999 re-election campaign. The Austrian Social Democratic Party
(Sozialdemokratische Partei Österreichs, SPÖ), however, is insisting that
parental leave benefits should be a reimbursement for lost income to which
non-working mothers should therefore have no entitlement. They countered the
ÖVP's offensive by adopting a position of supporting "parental leave for all
who need it to the degree that they need it".
[1] http://europa.eu.int/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=en&numdoc=31996L0034&model=guichett
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-rules-on-flexible-parental-leave
Equal treatment to be guaranteed for part-time employees
27 mei 1999
In 1993, some 300 female part-time employees in Austrian pharmacies - out of
a total workforce of 3,200 - brought a court case seeking equal treatment. In
pharmacies, two-thirds of employees work part time, and 95% of the
part-timers are women. The minimum number of weekly working hours is eight
(20% of the full-time week). Those who work full time move up one pay grade
every second year, but part-time employees move up only in proportion to
their working time. In other words, a "20%-employe"e moves up one pay grade
only every 10 years. The Organisation of Employed Pharmacists in Austria
(Organisation der Angestellten Apotheker Österreichs) considered this legal
regulation - originally dating from 1928 and re-enacted in 1959 - to be in
breach of EU rules on equal treatment for women and men. The European Court
of Justice, to which the case was referred, agreed in June 1998 that there
was discrimination, and the Austrian courts followed in April 1999. The
additional costs arising from implementing the rulings will be moderate at an
estimated ATS 11 million in compensation for income due to the pharmacy
employees since June 1998 and about ATS 8 million per year from now on.
Proposed Act to Combat Undeclared Work rejected
27 mei 1999
Long in the making (AT9901127N [1]), the Act to Combat Undeclared Work
(Gesetz zur Bekämpfung von Schwarzarbeit) was rejected by the christian
democrat caucus in the Austrian parliament on 28 April 1999. This in itself
would not have ruled out a majority for the proposal, but it would have made
it unlikely and the government would have split as the christian democratic
Austrian People's Party (Österreichische Volkspartei, ÖVP) is the junior
partner in the coalition. Controls will now be tightened within the framework
of existing law.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/bill-aims-to-combat-organised-illegal-work
Sick leave continues to fall
27 april 1999
Preliminary data for 1998 indicate that the average number of days of sick
leave taken by Austrian workers was 13.2, the same as the confirmed figure
for 1997. In 1996, average duration was 14 days. Over the longer term, the
gradual decline in the duration of sick leave appears to be continuing. Peaks
were recorded in 1957 with 17.6 days and 1980 with 17.4. A more recent peak
was 15.3 days during the period 1989 to 1991 (AT9802170N [1]). The data
include all recipients of wages and salaries but exclude civil servants and
most apprentices.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/decline-in-sick-leave-continues-in-1997
Social partners prepare for the millenium
27 april 1999
The Austrian government estimates that the total cost of the measures
required across the country to meet the year 2000 lies in the range of
between ATS 30 billion and ATS 60 billion. According to predictions made by
the Credit Protection Association of 1870 (Kreditschutzverband von 1870,
KSV), between 5% and 8% of Austrian firms will collapse in the aftermath of
the "year 2000 problem" or "millenium bug" (the problems expected to hit
computers when the date moves to 2000). KSV, with more than 20,000 members,
is Austria's major credit protection and information agency. It estimates
that over half of Austria's companies have not made any preparations and that
less than one-fifth have already completed them. Of companies with an annual
turnover of less than ATS 50 million, nearly two-thirds have done nothing.
KSV believes that in most cases there will not now be enough time to come to
terms with the problem before the end of 1999.
New incentives for pension funds
27 april 1999
There are 17 private pension funds in operation in Austria. In 1998 their
assets rose by 55% to ATS 68.5 billion. About 870 firms introduced company
pension schemes in 1998, part of a total of 1,369 that signed first-time
contracts with private pension funds. At the end of 1998, there were 4,820
companies which had a contract with a pension fund. The number of employees
covered increased over the year by 29% to slightly more than 200,000, and
pension recipients by 53% to 24,500. The value of pensions paid out during
the year increased by 36% to ATS 1.9 billion. Among the 17 pension funds,
there are seven that are not tied to a particular enterprise. Their assets
grew to ATS 47 billion in 1998 and the annual contributions to ATS 2.6
billion.