Adam, Georg
Autumn bargaining round opens against background of rising unemployment
22 October 2002
In Austria, collective bargaining is mainly conducted at sectoral level,
resulting in more than 400 separate agreements annually. However, the wage
bargaining system is strongly coordinated across the economy, based on the
leading role of the metalworking industry in the overall bargaining process
(AT9912207F [1]). This means that, traditionally, the collective agreements
concluded for the metalworking industry set the pace for other bargaining
units negotiating subsequently in the course of the annual bargaining rounds,
which usually occur in the autumn (ie a system of 'pattern bargaining').
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/structures-and-patterns-in-collective-bargaining-reviewed
Outgoing government introduces youth employment programme
07 October 2002
Due to the current economic recession, Austria's unemployment rate has
increased notably of late, in particular among people under the age of 25
years. At the same time, the number of apprenticeships offered by employers
has fallen - by 17% to 3,252 in the year to August 2002. At present, there is
a shortage of some 5,200 apprenticeships.
Government plans to reform part-time work scheme for older employees
22 September 2002
In January 2000, the coalition government of the conservative People’s
Party (Österreichische Volkspartei, ÖVP) and the populist Freedom Party
(Freiheitliche Partei Österreichs, FPÖ) introduced a scheme to encourage
part-time work among older workers (Altersteilzeit) (AT0110203F [1]). The aim
of introducing this form of progressive retirement (TN0109184S [2]) was to
keep older employees in the active labour force by offering them the
opportunity to reduce their weekly working hours, while receiving some
compensation for the lost pay and not damaging their social insurance
entitlement. The government’s goal, however, was not only to promote older
people's participation in the labour market, but also to relieve financial
pressure on the pensions system, since the number of older employees who were
taking early retirement - either by choice or otherwise - had been notably
increasing.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/law-and-regulation-undefined-labour-market/new-regulations-increase-part-time-work-among-older-employees
[2] www.eurofound.europa.eu/ef/observatories/eurwork/erm/comparative-information/progressive-retirement-in-europe
Government postpones cuts in taxes and non-wage labour costs
10 September 2002
In mid-August 2002, the coalition government of the conservative People’s
Party (Österreichische Volkspartei, ÖVP) and the populist Freedom Party
(Freiheitliche Partei Österreichs, FPÖ) announced that a comprehensive
reform of Austria’s company taxation system originally planned for 2003, as
well reductions in non-wage labour costs, have been postponed until 2004 for
budgetary reasons. Due to the fact that the prospects for the Austrian
economy have worsened significantly, the government argues that it would not
be reasonable to reduce tax rates and non-wage labour costs as soon as 2003,
as demanded by business representatives. Moreover, the flooding that
devastated several regions in the north-east of Austria in August 2002 has
caused an estimated EUR 7 billion of damage, which government subsidies are
needed to repair.
Austria under fire over discrimination against non-EEA workers
21 August 2002
On 4 April 2002, the United Nations Human Rights Committee, which monitors
the implementation of the International Covenant on Civil and Political
Rights [1], issued a set of 'views', finding that Austria's discrimination
against foreign workers from outside the European Economic Area (EEA) with
regard to co-determination under the Labour Constitution Act
(Arbeitsverfassungsgesetz, ArbVG) is in breach of Article 26 of the Covenant,
which requires equality before the law and the prohibition of discrimination
on any grounds. The Committee [2] also called on the Austrian government to
inform it of measures taken to implement its views. The Committee's statement
(on Communication No.965/2000)was the latest latest development in a
long-running case brought by a Turkish national who was was elected as a
works council member in Austria in 1994 and then deprived of this status by
the Austrian courts. The Committee's ruling was highlighted in Austria, at a
press conference held on 16 July 2002, by Hans Sallmutter, the chair of the
Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA).
[1] http://www.unhchr.ch/html/menu3/b/a_ccpr.htm
[2] http://www.unhchr.ch/html/menu2/6/hrc.htm
Non-wage labour costs under discussion
05 August 2002
In recent years, the Chamber of the Economy (Wirtschaftskammer Österreich,
WKÖ) has repeatedly launched a discussion over the perceived necessity for a
sizeable cut in the companies’ non-wage labour costs, for reasons of
international competitiveness. Business representatives have also always
claimed that employers' high contributions to the Austrian welfare system are
a structural impediment to job creation. WKÖ argues that a significant
reduction in non-wage labour costs of about EUR 1.1 billion per year would
stimulate employers to create several thousand new jobs, which would have a
significant positive effect on the national economy.
New night work legislation applies to both women and men
22 July 2002
With Austria's accession to the European Union in 1995, labour law provisions
providing specific protection for female employees had to be adapted to
Community law, which deems a specific ban on night work by women as unlawful.
Thus, Austria was obliged to reform its regulations on night-time employment
up by the end of 2001 (AT0107222F [1]). The coalition government of the
conservative People's Party (Österreichische Volkspartei, ÖVP) and the
popular Freedom Party (Freiheitliche Partei Österreichs, FPÖ) failed to
meet this deadline.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/ban-on-womens-night-work-finally-to-be-abolished
Parliament passes reform of severance pay
08 July 2002
On 12 June 2002, the Austrian parliament adopted a government bill providing
for a far-reaching reform of the severance pay system.
Restructuring provokes unrest among public sector workers
30 June 2002
In this context, industrial action has started to emerge in the public sector
in early summer 2002. The employees of the state-owned post-bus company,
Postbus AG, held a one-day national strike in May in protest at the split and
partial privatisation of the company (AT0206202N [1]), and planned further
action at the end of June. Furthermore, some other parts of the public
service may also face labour disputes. The central board (Zentralvorstand) of
the Union of Public Employees (Gewerkschaft Öffentlicher Dienst, GÖD) has
empowered its leadership to call industrial action, if necessary.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/post-bus-employees-strike-against-sell-off
Post-bus employees strike against sell-off
09 June 2002
For some time, the current coalition government of the conservative People's
Party (Österreichische Volkspartei, ÖVP) and the populist Freedom Party
(Freiheitliche Partei Österreichs, FPÖ) has been considering selling off
the national post-bus company (Postbus AG), Austria's largest bus operator,
which runs a large proportion of regional bus services.