Austrian autumn wage negotiations

In preparation for the autumn wage round in Austria, Roman Hebenstreit, head of the vida union, called for ‘decent’ collective bargaining agreements. Hebenstreit noted that real wages have declined by 0.8 percent since 2019, with particularly sharp drops in the manufacturing and gastronomy sectors. He criticized previous ‘crisis agreements’ for failing to keep pace with the cost of living, noting that recent retail settlements fell below the inflation rate, which exceeded three percent. Hebenstreit also highlighted a shortage of apprenticeships, accusing some companies of relying on seasonal foreign labor instead of investing in domestic vocational training.

By October, the negotiation round officially commenced, starting with the railway industry. The vida union advocated for higher pay to reflect the sector’s record performance, while also requesting longer rest periods. Employers, represented by the WKO rail division, argued that any new agreements must remain economically sustainable due to rising electricity and energy costs.

Negotiations have since expanded to the retail sector, affecting approximately 430,000 employees and 19,000 apprentices. The Union of Salaried Employees (GPA) has proposed a 3.8 percent salary increase to counter inflation, which is currently between 3.2 and 3.3 percent. The GPA is also seeking benefits such as overtime surcharges, predictable working hours, a legal claim to a five-day work week, and earlier access to a sixth week of vacation. The WKO has rejected the 3.8 percent demand, citing low profit margins and a difficult economic climate where unemployment has risen by 5.4 percentage points.