On Thursday evening, the social partners of the social economy reached agreement on the collective labor agreement after 16 hours of negotiations. Accordingly, wages and salaries will increase by up to 10.2 percent. The trade unions GPA and vida announced this after an agreement in the fourth round with the employers’ organization SWÖ. 130,000 workers in the social economy, ie the private care, health and social sector, are affected.
An increase of eight percent has been agreed for everyone, with salaries being increased by at least 175 euros per month. As a result, the lowest income group will receive a salary increase of 10.2 percent. Overall, nearly a third of workers benefit from the minimum amount, it said. The part-time salaries will be increased pro rata.
‘Negotiation result well above inflation’
Better recognition of previous service periods – for example of community service or the voluntary social year – was agreed in the framework law, as well as improvements in reclassifications to higher salary scales after training and five days off in preparation for the final exam for apprentices. The allowance for short-term replacement will be increased by 20 percent.
“The outcome of the negotiations is well above underlying inflation. We are pleased that we have been able to increase the growth of lower incomes. That is especially important in the current situation,” says GPA chief negotiator Eva Scherz in a broadcast. It was important to achieve sustainable wage increases instead of “one-off payments that evaporate immediately”. Vida negotiator Michaela Guglberger noted that due to the price increase the focus on the salary agreement was: “However, our demand for short-time work remains valid.”
Demonstrations and numerous company meetings
Scherz thanked the thousands of employees who, after lengthy negotiations, had recently raised their concerns. The unions had initially demanded a salary increase of 15 percent from employers and a minimum of 350 euros for a full-time job. There are also calls from trade unions for working hours to be reduced to 35 hours per week without a pay cut. In the previous week there was a demo and numerous company meetings to emphasize the requirements. Strikes were considered.
The employer side has already indicated an improvement in their offer of 7.5 percent and a minimum amount of 150 euros, but has tried to play down their hopes. He could not imagine that the diploma would be in double digits, Austrian social economy director and employer-side negotiator Walter Marschitz said on ORF radio on Wednesday.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
