Sparks fly in the electricity generation industry

Shortly before liberalisation and in the midst of restructuring, negotiations in the Austrian electricity generation industry proved difficult in 1998. In the end, appreciable pay rises and a number of measures addressing employment decline were agreed in December. Working time remained unchanged.

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

On the basis of works agreements, companies will have the option of raising wages and salaries by between only 2.3% and 2.5%, if they distribute another 0.4% of the wage or salary bill to designated groups. On 1 February 1999, each employee will also receive a one-off lump-sum payment of ATS 2,500. All this is similar to the agreement previously concluded on wages in industrial metalworking (AT9810108N). Employees in the energy industry cost employers on average ATS 1.2 million per year.

The trade union demand for a reduction in working time fell by the wayside. Employment will instead be secured by enhancing the qualifications of employees. All employees will be entitled to one week's paid training leave per year. In addition, each company will set up a training fund in 1999 worth ATS 2,500 per employee. The use of this fund will be decided through works agreements. Furthermore, the conditions for telework were settled along the by-now familiar lines (AT9810107F). There is also a basic agreement to unify the employment statuses of wage and salary earners.

Negotiations had been long and hard. The industry is to be liberalised on 19 February 1999 under the terms of a European Union Directive that prohibits energy supply monopolies as they currently exist in Austria (ownership remains unaffected). Employers initially offered increases of 2.1% on minimum and 1.4% on actual wages, plus a lump-sum payment of ATS 5,000 - an offer later raised to 3.1% and 2.5%. GMBE insisted on a settlement equal to that of the metalworking industry, and said that it would reduce the wage demand only if a 36-hour week were agreed. The employers offered to concede a half-hour weekly reduction. Staff meetings of about 13,000 employees on 24 and 25 November and a meeting of works council chairs on 30 November were called by GMBE after the negotiations had stalled during the fifth session on 22 November.