High energy and raw material costs, high inflation and declining demand are weighing down 1200 companies in Austria. The omens for the metal processors’ wage negotiations, which officially start on September 19, couldn’t be more difficult.
The approximately 134,000 employees in 1,200 companies are responsible for a quarter of Austria’s exports. But the pressure on the negotiators around the association’s president, Christian Knill, hadn’t been that great for a long time.
The three main problem areas are:
- Raw materials became more expensive, as did many precursors, and there was also an exorbitant increase in energy costs. According to the survey, the profit margin is expected to shrink to an average of 2.2 percent (previously 5.7 percent).
- 59 percent of companies expect a decline in demand in the coming months. A third company expects a negative result for 2022. Only the first four months went relatively well.
- High inflation (currently 9.1 percent) is becoming a bottleneck in the negotiations. Inflation has been around 6.2 percent in the past twelve months. The unions certainly want to be compensated for that.
In recent years, there has always been a deal that is well above inflation. The average gross wage for metal workers is EUR 4,704 (salaried workers) and EUR 3,353 (labourers). Every percent of wage increases costs the industry about 90 million euros, they say.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
