Adam, Georg

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

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.

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

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.

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

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.

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

On 12 June 2002, the Austrian parliament adopted a government bill providing for a far-reaching reform of the severance pay system.

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

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.