Adam, Georg

There are no precise data on the number of companies in the Austrian road haulage sector, with figures varying from about 5,000 to about 13,000 businesses. The same holds true for the number of employees of these companies, with estimates varying from about 55,000 to 80,000. However, these vague figures suggest that relatively small firms prevail numerically in the sector.

The childcare benefit scheme (Kinderbetreuungsgeld) introduced by the government in 2001 is designed to offer parents greater freedom of choice in matters regarding childcare. It aims to provide more financial security for families with young children, regardless of the parents’ previous employment situation. All parents with childcare obligations are thus eligible for the benefit. This scheme, covering all families with children born since 1 January 2002, has replaced the former system of parental leave allowance (Karenzgeld), paid out only to employed persons as a social insurance benefit. Moreover, the new childcare benefit scheme provides slightly higher payments - at present about EUR 15 per day - and for a longer period - up to 36 months (if both parents alternately assume childcare obligations). By allowing beneficiaries to earn an additional income up to a maximum of EUR 14,600 per year, the new scheme seeks to promote the labour market participation of women with small children, and to facilitate the reconciliation of work and family obligations.

After a three-month period of negotiations with all parties in parliament, the conservative People’s Party (Österreichische Volkspartei, ÖVP) decided at the end of February 2003 to continue its previous coalition government with the populist Freedom Party (Freiheitliche Partei Österreichs, FPÖ). The earlier coalition government of these two parties had resigned in September 2002 because of insurmountable conflicts between them, mainly caused by internal disputes within the FPÖ. The general elections subsequently held on 24 November 2002 saw the ÖVP emerge as the clear winner with more than 42% of the vote, whereas the FPÖ lost almost two-thirds of its 2000 vote, receiving only 10.0%. (AT0302201N [1]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/railway-employees-threaten-strike-over-restructuring

In September 2002, after conflicts within the coalition government of the conservative People’s Party (Österreichische Volkspartei, ÖVP) and the populist Freedom Party (Freiheitliche Partei Österreichs, FPÖ) - which had come to office in February 2000 (AT0002212F [1]) - the ÖVP leadership decided to resign from the coalition. The main reason for the ÖVP’s resignation was internal disagreements within the FPÖ, with important representatives of the party, including its former chair, Jörg Haider, opposing measures perceived as unpopular. Opinion polls had indicated a major fall in popularity for the FPÖ. For the ÖVP, a continuation of the coalition government seemed impossible because several FPÖ ministers had resigned from office. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-labour-market/new-government-presents-policy

Austria has a 'dual system' of vocational training, providing both for training in special schools and in-company training for apprentices. For a long time, the system worked well, resulting in a relatively low youth unemployment rate, not least because companies could take on apprentices at a low cost, given their relatively low pay. In recent years, however, an acute shortage of apprenticeship places has emerged, due to intensified company 'rationalisation' measures, including significant cuts in personnel.

In early 2003, one year after revelations about illegal employment practices at several Austrian road haulage companies (AT0202203F [1]), the mass media and the Chamber of Labour (Arbeiterkammer, AK) have made new allegations about other forms of illegal employment relationships in other sectors. In particular, some employers in the construction industry are accused of founding and registering 'pseudo-companies' for the sole purpose of exploiting employees and defrauding the tax authorities. Whereas the main problem related to illegal employment in Austria has hitherto been wrongly declared or undeclared employment (usually of foreign workers) - as in hotels and catering as well as road haulage - new illicit employment practices by an apparently increasing number of construction companies are now gaining in importance. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/scandal-over-illegal-employment-of-east-european-lorry-drivers

The general elections held on 24 November 2002 saw substantial gains for the conservative People’s Party (Österreichische Volkspartei, ÖVP) - the larger party in the previous coalition government - which won more than 42% of the vote. The ÖVP Chancellor, Wolfgang Schüssel, has since carried out exploratory talks with all other parliamentary parties in order to build a new coalition government, which have not yet reached an outcome. At the same time, the ÖVP has developed a programme which should act as guidelines for the future government.

By international and European standards, the Austrian public pensions insurance system, which protects insured people and their surviving spouses and children against the risks of old age, invalidity and death, is widely deemed to be stable and efficient. It is based on a 'pay as you go' mechanism (Umlageverfahren) which means that the cash benefits payable to retired, disabled and widowed people are met from the taxes and contributions paid by the active working population. This 'inter-generational agreement' based on solidarity between younger with the older people has proved efficient in terms of maintaining living standards for older people and still represents more than 90% of overall pension provision in Austria. Accordingly, the share of occupational pension schemes (the 'second pillar') and of individual private life and pension insurance schemes (the 'third pillar') is still relatively low.

On 29 December 2002, the management of Austrian Airlines (AUA), Austria' national air carrier, gave notice of termination from the end of the year of a works agreement (signed by management and the company works council) on job demarcation. This agreement stipulates that at least 43% of all services performed by the AUA group, including two subsidiaries, must be performed by AUA staff. This rule was agreed in 1997, when AUA acquired both the regional carrier Tyrolean Airways and the Lauda Air charter flight operator, in order to protect the significantly better paid AUA personnel from possible competition with staff at these two lower-wage subsidiaries. In contrast to the standard pattern of sectoral bargaining in Austria, single-employer agreements are concluded for airlines. Hence, pay levels within this sector vary widely (AT9906150F [1]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined-working-conditions/austria-faces-summer-of-transport-disputes

In June 2000, the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA) - the largest affiliate of the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB), with almost 285,000 members among private sector white-collar workers - launched a thoroughgoing organisational reform (AT0008277F [1]). This internal restructuring process was prompted by declining unionisation rates and new labour market developments, such as increasing flexibilisation and deregulation of employment relations. In the course of this restructuring process, GPA's former sectoral sections have been replaced by 'economic branches' and its former regional (Länder) organisations by smaller sub-units. Furthermore, the representation of new employee groups – such as those involved in various forms of 'atypical' work or 'involuntary' self-employment – has been addressed by corresponding 'interest groupings' and 'issue platforms' within GPA. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/white-collar-workers-union-launches-restructuring