On 17 January 2001, the bargaining parties in banking signed a new collective agreement on pay. Unlike some other European countries, collective bargaining in the Austrian banking sector takes place exclusively at the industry level, with no single-employer settlements. The negotiations over the 2001 deal occurred in a context of an outstandingly good financial situation in the sector, and three rounds of bargaining were needed to find a compromise.
In January 2001, a new collective agreement was signed for the Austrian banking sector, providing for an average pay rise of 2.91%. Negotiations were dominated by debates on pay flexibility.
On 17 January 2001, the bargaining parties in banking signed a new collective agreement on pay. Unlike some other European countries, collective bargaining in the Austrian banking sector takes place exclusively at the industry level, with no single-employer settlements. The negotiations over the 2001 deal occurred in a context of an outstandingly good financial situation in the sector, and three rounds of bargaining were needed to find a compromise.
The negotiations opened on 15 December 2000, when the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) presented its demands. GPA called for an increase in basic pay of 4.6%. The employers responded by offering a pay rise of 2% plus a one-off, unconsolidated bonus of ATS 1,000 (EUR 73). The bonus was intended to take account of the sector's prosperity in 2000, while GPA claimed that the sector's good financial performance should translate into a consolidated pay increase. The difference between the two positions lies in the fact that one-off bonuses – in contrast to basic pay rises – are not consolidated into the pay levels which serve as the basis for calculating the pay increases in (future) collective agreements. The employers' argument was that remuneration resulting from the unusually good financial situation during 2000 should not be incorporated into basic pay which would form the basis for bargaining in future years.
Due to their differing positions, the social partners had to interrupt the bargaining process and then restart on 19 December. The employers revised their offer upwards to a basic pay increase of 2.3%, plus a one-off bonus of ATS 3,000 (EUR 218). This offer was again rejected by the GPA.
In the course of the third set of negotiations in January, the parties reached an agreement. Accordingly, pay will increase by a flat rate of ATS 80 (EUR 6) per month plus 2.6%. This arrangement favours employees with low incomes, implying a pay hike of 3.14% for new recruits and of 2.8% for top earners. On average, the agreement means a pay rise of 2.91%. In addition, all employees will receive a one-off bonus of ATS 1,000 (EUR 73). Aside from a few other provisions on non-wage issues, the parties to the agreement decided to establish an expert bargaining group to discuss compensation for the work on the introduction of the euro single currency.
The banking bargaining round followed the traditional practice of social partnership in Austria. The key issue was the question of how collective agreements on pay should relate to economic performance. The sector's employers argued for a one-off bonus as a means of enhancing pay flexibility. From the union's point of view, this was an attempt to downgrade the basic pay system. GPA fears that a bonus system might – in the long run – lead to an arrangement that allows for regular pay increases only in line with the inflation rate, whereas the sector's economic growth will be reflected only in bonuses. Since bonuses do not affect the long-term development of pay, such an arrangement is seen as involving a substantial deterioration of the employees' situation. Since the demand for bonuses reflects a general employer preference for more pay flexibility, this issue is likely to remain on the agenda of coming bargaining rounds.
Eurofound zaleca cytowanie tej publikacji w następujący sposób.
Eurofound (2001), New pay agreement signed in banking, article.
