Gächter, August

On 20 January 1999, the Austrian government agreed on a bill aimed at combating organised illegal work. The addition of the word "organised" - that is, with entrepreneurial intent - is the key difference from the proposal that had been circulated in October 1998 (AT9810106F [1]). The new legislation, on the assumption that it is enacted by parliament, is planned to take effect from 1 July 1999. A number of industries, namely construction, hotels and restaurants, cleaning services and transport, will then have to report any new employee to the social security administration on the first day of employment. The administration will set up a call centre for this purpose, but it will not accept faxes or e-mails. For all other industries, the first-day rule will be effective from 1 July 2000. Currently they have three days to report. Main contractors will be responsible for the payment of regulation wages by subcontractors, and they will have to carry out at least 50% of work themselves. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/draft-legislation-seeks-to-curb-illicit-work

In 1998, the number of people in employment in Austria rose by 22,000 or 0.7% to 3,077,000 on annual average. At the same time, unemployment also rose, with the annual average standing at 237,794, up from 233,348. History thereby repeated itself: over the period that the economy was growing at an annual average of 3.85% between 1988 and 1991, unemployment was scarcely reduced in the first two years and actually increased in 1990 and 1991. This poses a challenging background for Austria's National Action Plan (NAP) for employment (AT9804180N [1]). As with the other EU Member States, Austria has drawn up an NAP in response to the Employment Guidelines [2]. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/measures-to-complement-austrian-national-action-plan-on-employment [2] http://europa.eu.int/comm/employment_social/empl&esf/empl99/guide_en.htm

The Austrian government, on 21 January 1999, decided to bring parental leave regulations closer into line with the EU Council Directive (96/34/EC) on parental leave [1] (TN9801201S [2]). Parents, if the mother was employed during the pregnancy, are currently entitled to 24 months' leave, which has to be taken before the child turns two years old. From 1 January 2000, the age limit for the child concerned will be extended to eight years old. The rule whereby parental leave is limited to 18 months, if the father does not take at least six months, remains unchanged. The parents, after the birth, will have eight weeks instead of four to decide on the division of the leave between them. There will now be another period later on during which parents will have to declare how they intend to split up the remainder of the leave between them. Following adoption of a child aged between two and eight, the parents will be entitled to six months' leave. [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/erm/comparative-information/the-eu-parental-leave-agreement-and-directive-implications-for-national-law-and-practice

In the wake of privatisation and greater profit orientation, the Austrian banking sector is undergoing a process of forming larger enterprises or strategic partnerships. This has been coupled with a reduction in staff that has been accomplished by encouraging retirement (AT9901121F [1]). The forthcoming sale of the Post Office Savings Bank (Postsparkasse, PSK) is another such instance. The government intends to sell 49% of PSK, which is currently fully owned by a state-owned holding company. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/industrial-relations-undefined-working-conditions/new-issues-emerge-in-1999-banking-bargaining-round

On 2 December 1998 the Metals, Mining and Energy Trade Union (Gewerkschaft Metall-Bergbau-Energie, GMBE), the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) and the Association of Electricity Producers (Verband der Elektrizitätswerke Österreichs, VEÖ) concluded an agreement on wages and salaries in the electricity generation industry, backdated to 1 November 1998. Minimum salary rates are being raised by 3.1% and wage rates by 3.7%. Depending on their current level, actual salaries and wages are being raised by between 2.5% and 2.9%. The deal covers 25,000 employees in 400 companies

Autocluster Styria is an invention of the provincial government of Styria (Steiermark) in Austria. It comprises 150 plants and research sites, all engaged in one aspect or other of automobile manufacturing, that began to cooperate actively in 1996. They range from very small to fairly large sites and together employ more than 11,000 people, several thousand more than in 1996. Some 20% of the province's exports now originate from this industry. The provincial government has invested ATS 20 million in making the cluster idea work. However, from 1999 the subsidies will be terminated, as was made clear from the beginning, and cooperation will have to be financed by the companies themselves on the one hand and the trade unions on the other. The unions are now baulking at the prospect of self-financing.

The first half of 1998 in particular was characterised by unexpectedly buoyant economic growth. In the second half of the year, growth slowed from over 4% in the first two quarters to 2.7% in the third quarter, with a final annual rate of 3.3%. However, these high economic growth rates failed to translate into significant increases in employment. Indeed, contrary to the previous year's predictions (AT9712165F [1]), unemployment did not decline to 4.3% but rose to 4.5% from 4.4% in 1997. Inflation was reduced to 1.2% and the overall public deficit stood at 2.2% of GDP. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/1997-annual-review-for-austria

A long battle to start phasing out tenure in the Austrian public service came to an end on 4 December 1998. The Christian Democrat-dominated Public Service Trade Union (Gewerkschaft Öffentlicher Dienst, GÖD) had been pitched against the Social Democrat Federal Ministry of Finance (Bundesministerium für Finanzen, BMF), and the Christian Democrat Austrian People's Party (Österreichische Volkspartei, ÖVP) against the Austrian Social Democrat Party (Sozialdemokratische Partei Österreichs, SPÖ). The two parties are respectively the junior and senior partners in the coalition government. The BMF's declared goal was to limit tenure to a few areas vital to national security. The GÖD, however, was adamant that top civil service positions should be filled only by tenured employees of the state (AT9807198N [1]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/negotiations-continue-over-civil-service-reforms

A collective agreement covering the 57,000 salaried employees in craft enterprises in the metalworking sector was concluded on 4 November 1998. Minimum pay rates were raised by 3.7% and actual salaries by 2.5% - the same increases as had previously been agreed for blue-collar workers' wages. The agreement is to take effect from 1 January 1999 and to run for one year. By comparison, from 1 November 1998 increases in wages and salaries in industrial enterprises in the metalworking sector were respectively 3.7% and 2.9% (AT9810108N [1]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/pay-round-in-manufacturing-sectors-completed

After a lull, the Sunday working issue (AT9712151F [1]) resurfaced in October 1998 with a vengeance, largely owing to an attempt, begun in February, by the Upper Austrian provincial executive of the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB) to initiate a referendum against Sunday working. In April, the local bishop presented a petition containing 270,000 signatures against Sunday working to the government. The ÖGB's largest member trade union, the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) passed a resolution on 12 November in favour of the referendum. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-industrial-relations-law-and-regulation-business/sunday-work-recent-debates-and-developments