Adam, Georg
Plans for major union merger in danger of failure
07 juni 2004
In October 2001, representatives of Austria’s largest blue- and
white-collar unions decided to merge their organisations. Hans Sallmutter,
the chair of the Union of Salaried Employees (Gewerkschaft der
Privatangestellten, GPA), and Rudolf Nürnberger, the chair of the
blue-collar Metalworking and Textiles Union (Gewerkschaft Metall-Textil,
GMT), announced that a single large union with about half a million members
would be established in the coming years (AT0110205N [1]). Subsequently,
three other unions decided to join the planned merger - the Union of Chemical
Workers (Gewerkschaft der Chemiearbeiter, GdC), the Printing and Paper Union
(Gewerkschaft Druck und Papier, GDP), and the Union of Agricultural, Food,
Beverage and Tobacco Workers (Gewerkschaft Agrar-Nahrung-Genuss, ANG). All
five unions are affiliated to the Austrian Trade Union Federation
(Österreichischer Gewerkschaftsbund, ÖGB).
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/largest-blue-and-white-collar-unions-intend-to-merge
Study finds deteriorating working conditions in commerce
01 juni 2004
In line with international developments, Austrian commerce, and in particular
the retail sector, has over recent years been faced with intensified
competition and new competitive management strategies, caused by the growing
internationalisation of the market. This has resulted in a considerable
movement towards market concentration, accompanied by pressures for
restructuring and deregulation of employment. These developments - which have
resulted in industrial disputes, notably over (liberalised) working hours,
since the mid-1990s (AT0307201N [1]) - have, according to commentators, had a
problematic impact on the sector’s working conditions, especially as
regards job security, quality of work, working hours regulations and
remuneration.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/government-proposes-amendments-to-shop-opening-hours-act
2003 Annual Review for Austria
12 maj 2004
On 24 November 2002, a general elections was held, which had become necessary
due to conflicts within the coalition government of the conservative
People’s Party (Österreichische Volkspartei, ÖVP) and the populist
Freedom Party (Freiheitliche Partei Österreichs, FPÖ). These elections saw
the ÖVP emerge as the clear winner. It increased its vote by more than 15
percentage points to 42.3%, thus becoming the largest party in parliament for
the first time since 1970 (AT0301204F [1]). After a three-month period of
negotiations with all parties represented in parliament, on 21 February 2003
the ÖVP decided to continue its previous coalition government with the FPÖ,
which had lost almost two-thirds of its 2000 vote, receiving only 10.0%.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/2002-annual-review-for-austria
New service regulations agreed for railway employees
09 maj 2004
On 30 April 2004, the management of the Austrian Federal Railways
(Österreichische Bundesbahnen, ÖBB) and representatives of the Union of
Railway Employees (Gewerkschaft der Eisenbahner, GdE) agreed new 'service
regulations' applying to about 47,000 railway employees. This agreement was
concluded under a government threat unilaterally to alter the existing public
service employment regulations by law, if the parties failed to reach a
settlement by the end of April.
Calls for reform of childcare benefit scheme
20 april 2004
In March 2003, the Chamber of Labour (Arbeiterkammer, AK) presented a study
of the effects of Austria’s childcare benefit scheme
(Kinderbetreuungsgeld), conducted by Hedwig Lutz of the Austrian Institute of
Economic Research (Österreichisches Institut für Wirtschaftsforschung,
WIFO). The study’s findings question the scheme’s effectiveness in terms
of women’s chances to participate in the labour market after taking
parental leave (AT0304201N [1]). One year later, at the end of March 2004, AK
presented a more differentiated, updated follow-up study on the same issue,
drawn up by the same author on behalf of AK ('Wiedereinstieg und
Beschäftigung von Frauen mit Kleinkindern'). In general, this updated
research, which is based on more reliable empirical data than the 'pioneer'
study, corroborates the results of the latter, with slight modifications in
detail.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/controversy-over-childcare-benefit
Unemployment insurance coverage to be extended to self-employed
05 april 2004
In mid-March 2004, the Minister of Economy and Labour Affairs, Martin
Bartenstein, presented a draft bill on 'labour market reform'
(Arbeitsmarktreformgesetz). This includes a proposal which provides for the
possibility for all categories of self-employed people to opt for voluntary
insurance against the risk of unemployment. According to the draft, from 1
January 2005 all 340,000 or so self-employed people in Austria would be
entitled voluntarily to contribute some 6% of their gross income to the
unemployment insurance fund, which would (after a minimum one-year period of
contributions) grant them eligibility to receive unemployment benefit on
losing their jobs.
Controversy over quota for foreign seasonal workers
28 mars 2004
Austria has a long tradition of a relatively high level of seasonal labour,
especially in 'typically' seasonal branches such as tourism and agriculture.
Seasonal labour has always been characterised by a disproportionately high
share of foreign workers. The legal status of foreign seasonal workers
differs considerably from that of all other resident or foreign employees
working in Austria, in particular in terms of labour law and security of
residence. Seasonal labour is particularly important for employers that
require short-term labour due to fluctuations in demand. This means that
seasonal workers may be employed during short-term periods of higher demand
for labour. When the employment relationship comes to an end, the foreign
worker must subsequently leave the country.
Government plans seven-year transitional period for workers from central and eastern Europe
07 mars 2004
On 24 February 2004, the cabinet council agreed a transitional regulation
which aims to ensure a medium-term continuation of the current restrictions
on entry to the Austrian labour market for workers from the EU acceding
countries in central and eastern Europe, during the first years of their EU
membership. In the face of the forthcoming accession of 10 new EU Member
States on 1 May 2004, the coalition government of the conservative People’s
Party (Österreichische Volkspartei, ÖVP) and the populist Freedom Party
(Freiheitliche Partei Österreichs, FPÖ) has drawn up a regulation which
seeks to continue the present restrictive access regime for entry to the
Austrian labour market for workers from outside the current European Economic
Area (EEA) (AT9703104F [1]). In more detail, the government plans to enact an
EU Enlargement Adaptation Act (EU Erweiterungs-Anpassungsgesetz) which will
prohibit employees from most of the new EU Member States from entering
Austria’s labour market without restriction from 1 May 2004, for a
transitional period of up to seven years (as permitted under arrangements
agreed by the EU and new Member States in central and eastern Europe).
Chancellor Wolfgang Schüssel of the ÖVP stated that this regulation will,
for the next few years, protect resident employees from cheaper (ie low-wage)
foreign competitors.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-law-and-regulation-labour-market-social-policies/the-legal-position-of-foreign-nationals
Government presents draft tax reform
01 mars 2004
In early January 2004, the coalition government of the conservative
People’s Party (Österreichische Volkspartei, ÖVP) and the populist
Freedom Party (Freiheitliche Partei Österreichs, FPÖ) presented a draft for
a comprehensive taxation reform. This reform aims to reduce taxes for both
employees and companies and, it is planned, should be enacted by parliament
by June 2004. According to Karl-Heinz Grasser, the minister of finance, these
measures are devised to reduce the overall rate of taxation (paid by
employees and employers) from the current 43% of the GDP to 42.3% from 2005,
when the reform should come into effect. Despite the planned cut in tax
returns for the state, Mr Grasser calculates the 2005 budgetary deficit at no
higher than 1.5% of GDP. The total volume of tax relief due to the draft
reform is planned to amount to EUR 2 billion and EUR 3 billion per year.
Electrical sector agrees first common pay system for blue- and white-collar workers
22 februari 2004
On 12 December 2003, the Federal Organisation of the Electrical and
Electronics Industry (Fachverband der Elektro- und Elektronikindustrie, FEEI)
on the employers’ side and the blue-collar Metalworking and Textiles Union
(Gewerkschaft Metall-Textil, GMT) and white-collar Union of Salaried
Employees (Gewerkschaft der Privatangestellten, GPA) on the employees’ side
concluded a new collective agreement for the electrical and electronics
sector. After a three-year period of negotiations, the social partners in
this sector managed to reach a settlement on a new common pay scheme for both
employee groups - ie blue-collar and white-collar workers. Accordingly, the
sector's 250 companies and 58,000 employees will be covered by a new
classification scheme (Beschäftigtengruppenschema) providing for a more
precise single classification of jobs. This aim to replace the old
classification system which has been widely perceived as too inflexible and
imprecise, with problems of incorrect classification arising mostly to the
detriment of women (AT0103209F [1]). The new scheme is devised to improve the
validity of job classifications, in particular regarding formally unskilled
workers actually working as skilled/trained employees. These advantages,
however, are counterbalanced by a less favourable system of automatic pay
increments (Vorrückungssystem) as compared with the current automatic
two-yearly increments. However, the new agreement stipulates another
additional pay scheme analogous to the so-called 'distribution option' which
has been laid down in collective agreements on several occasions in the past
(AT0111229N [2]). Under the new agreement, a certain proportion of the
collectively agreed pay increase (Verteilungsvolumen) can be flexibly
distributed among the employees of an individual establishment. In contrast
to the 'distribution option' which was voluntary, the new clause is binding
on the employer.
[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/social-policies-undefined-industrial-relations/gender-related-pay-differentials-examined
[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-collective-agreements-concluded-in-metalworking