Adam, Georg

During July 2006, a significant shortage of air traffic controllers, employed by Austro Control [1], at Vienna International Airport caused frequent delays of flight departures. The airline most affected was Austrian (AUA [2]) (the former Austrian Airlines national air carrier, *AT0408203F* [3]). On several occasions, one out of three of the day’s scheduled flights was considerably delayed due to a lack of departure ‘slots’ allowed by Austro Control for security reasons. According to Austrian’s Chief Executive Officer (CEO), Alfred Ötsch, the financial costs to the company as a result of these inconveniences amounted to €5.8 million. [1] http://www.austrocontrol.at/en/home/index.html [2] http://www.aua.com/at/eng [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/unofficial-strike-by-flight-crew-hits-austrian

In the spring of 2006, the media and the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB [1]) uncovered information about underhand derivatives trading carried out by the federation’s own bank, the Bank for Employment and Commerce (Bank für Arbeit und Wirtschaft und Österreichische Postsparkasse AG, BAWAG PSK [2]). It soon emerged that BAWAG’s derivatives trading with Refco, an insolvent futures broker in the United States (US), and other speculative financial transactions in the Caribbean had resulted in losses of €1.3 million from 1995 to 2000. Consequently, the ÖGB President, Fritz Verzetnitsch, and the ÖGB Chief Secretary for Financial Affairs, Günter Weninger, were forced to resign (*AT0604019I* [3]). Most union officials criticised both the ÖGB president and chief secretary for their decision to use several business branches of the ÖGB, including the strike fund, as collateral, without informing other members of ÖGB’s supervisory board. In so doing, unions claim they had jeopardised ÖGB’s capacity to act. Both men had justified their actions as being necessary in the bid to protect the bank. [1] http://www.oegb.at/servlet/ContentServer?pagename=OEGBZ/Page/OEGBZ_Index&n=OEGBZ_0 [2] http://www.bawagpsk.com/bawagpsk/home/nav.html [3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/union-president-forced-to-resign-over-bank-scandal

Subsequent to the launch of an initiative in May 2006 by the industry branch of the Austrian Federal Economic Chamber (Wirtschaftskammer Österreich, WKÖ [1]), the President of WKÖ, Christoph Leitl, the Federation of Austrian Industry (Industriellenvereinigung, IV [2]) and some individual business representatives have questioned Austria’s traditional wage bargaining formula. Negotiations on pay increases have, for many years, been conducted on the basis of the so-called ‘Benya formula’ (named after Anton Benya, a former president of the Austrian Trade Union Federation, Österreichischer Gewerkschaftsbund, ÖGB [3]), according to which wages are calculated on the basis of the national inflation rate and productivity. [1] http://www.wko.at [2] http://www.voei.at/ [3] http://www.oegb.at/

During early spring 2006, the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB [1]) and the media made allegations about new practices of illegally employing workers mostly from outside the European Union (EU). The ÖGB and some member unions have accused several companies of forcing third-country nationals [2] to perform ‘modern forms of slave labour’. With respect to the case of a certain construction and demolition company in Upper Austria – which has widely been commented on as only the ‘tip of the iceberg’ – representatives of the Federal Ministry of Economy and Labour Affairs (Bundesministerium für Wirtschaft und Arbeit, BMWA [3]) confirmed that existing pay and working conditions had been seriously violated. [1] http://www.oegb.at [2] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/third-country-nationals [3] http://www.bmwa.gv.at/EN/default.htm

In autumn 2005, the Bank for Employment and Commerce (Bank für Arbeit und Wirtschaft AG, BAWAG [1]) – Austria’s fourth largest bank, owned by the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB [2]) – admitted that it had been involved in obscure derivatives trading with Refco, an insolvent US futures broker. This resulted in major losses of several hundred million euro. As a result, the chief executive officer of BAWAG was forced to resign. When his successor, Ewald Nowotny, took office in January 2006, he immediately promised to cease all ‘exotic trading’ and to clear up all businesses causing major financial problems for the bank. In late March 2006, internal investigations within the bank revealed that additional losses of one billion euro had also been covered up. These resulted from derivatives trading in the Caribbean from 1995 to 2000. [1] http://www.bawag.com/ [2] http://www.oegb.at/

On 1 January 2006, Section 34a of the Labour Market Service Act (/Arbeitsmarktservicegesetz/, AMSG), which was passed by parliament in the autumn of 2005, came into force. The new regulation enables both employers and employees to avail of subsidised wages in low-wage sectors, and aims to boost employment, particularly in light of Austria’s steadily increasing unemployment levels in recent years (*AT0509202N* [1]). The reasoning behind the new legislation is that vacant posts, which cannot be filled because of extremely low pay levels, should be made more attractive to people who are long-term unemployed, by subsidising their wages using funds of the Labour Market Service (Arbeitsmarktservice, AMS [2]). Such low-wage jobs are typically part time and often entail commercial, basic office and cleaning activities. [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/subsidised-wageto-combat-unemployment [2] http://www.ams.or.at/neu/

According to a joint press release on 14 March 2006, the Union of Salaried Employees (Gewerkschaft der Privatangestellten, GPA [1]) and the Printing, Journalism and Paper Union (Gewerkschaft Druck, Journalismus, Papier, DJP [2]) plan to merge their organisations during 2006. The acronym of the new trade union will be GPA-DJP. GPA, which currently has about 276,000 members, and the much smaller DJP, with approximately 17,000 members, will jointly cover a total of about 293,000 members. This merger will further strengthen GPA’s position as the largest and probably most powerful affiliate of the Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ÖGB [3]). [1] http://www.gpa.at/ [2] http://www.dup.or.at/ [3] http://www.oegb.at/

On 1 January 2006, the 2005 Household Service Cheque Act (Dienstleistungsscheckgesetz, DLSG) came into effect, which enables people using household services to pay for them with a special cheque (including injuries insurance contributions) instead of in cash. In practice, this means that people using such services (ie the 'quasi-employers') have to buy 'household service cheques' prior to engaging a household worker. By paying for the service with the cheque, the (quasi-)employer has fulfilled all social insurance obligations on behalf of the worker who - for his or her part - has to submit all the cheques received for the work at the end of the subsequent month to the Insurance Association for Railway and Mining Workers (Versicherungsanstalt für Eisenbahnen und Bergbau, VAEB). The VAEB is in charge of administering the new scheme, which includes the conversion of the submitted cheques into cash to the benefit of the household workers. The cheques are available for sale at post offices (at a fixed value of EUR 5 or EUR 10), at tobacconists’ shops and directly at the offices of the VAEB (in these cases at any value demanded by the employer). For the employer, the purchasing price of the cheque includes 1.4% injuries insurance contributions and small additional administration fees. When handing over the cheque to the household worker, only the names and the social insurance identification numbers of both parties concerned have to be filled in, as well as the working day the cheque refers to.

According to figures released by the General Accidents Insurance Corporation (Allgemeine Unfallversicherungsanstalt, AUVA [1]), the number of workplace accidents in Austria remained almost unchanged during the period 2004-2005, with 0.1% up to a total of 120,271 cases. Notably, these numbers refer to a broad concept of work accident, also including the so-called petty accidents, which do not result in any absence of work, and accidents while commuting (to or from work), which account for some 10-12,000 cases per year. Moreover, these figures also include accidents involving self-employed people (AT9707126N [2]), of which there are in between 3,000 and 3,500 each year. A more detailed view, however, shows that the number of fatal accidents decreased considerably in the 2004-2005 period, 7.2% down to 219 in total. Despite this positive development, AUVA’s general director, Helmut Pichler, cannot identify any long-term trend, since the 2005 change in the number of fatal accidents lies, he stated, within the statistical range of variations. In order to have the numbers of workplace accidents effectively dropped for a lasting period, AUVA plans to join a National Action Plan (NAP) for Accident Prevention drawn up and implemented in 2004 by the Federal Ministry for Health Affairs and Women. This NAP includes - apart from working life - all spheres of life; its aim is to prevent 2,500 fatal accidents by 2010. [1] http://www.auva.at/ [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/work-accidents-down-in-1996

On 12 January 2006, the coalition government of the conservative People’s Party (Österreichische Volkspartei, ÖVP) and the populist Alliance for the Future of Austria (Bündnis Zukunft Österreich, BZÖ) agreed on the partial privatisation of the Austrian Post Company (Österreichische Post AG). The cabinet empowered the state public holding company (Österreichische Industrieholding AG, ÖIAG) to sell off (ie privatise) up to 49% of its state shares in Österreichische Post - which is currently entirely state-owned - on the stock exchange in 2006. The ÖIAG was initially established by law as a holding concern to administer and manage the companies completely or partially owned by the state. However, in the mid-1990s, this institution changed from an operating concern holding a set of shares in state-owned companies to an executive privatisation agency, whose main role is to carry out the privatisation of all these firms on behalf of the government (AT0312204F [1]). [1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/steel-producers-fully-privatised