Without much ado, the government and the social partners agreed as of 1 October on a new long-term short-time working model. In essence, the scheme then follows the pre-Corona regulations. However, the ÖGB continues to aim for a replacement rate of up to 90 percent of net income, which is common during the pandemic. The trade union federation explained that a corresponding model agreement between the social partners is still being finalized.
In the Covid short-time work model, employees were reimbursed 80 to 90 percent of their net salary. A distinction must be made between cost reimbursements from the employment service (AMS), support from companies and additional supplementary payments from employers. The latter are the subject of agreements between the social partners. According to the model agreement, the replacement rate should remain around 90 percent net in the future, according to the ÖGB. The Chamber of Commerce (WKÖ) told the APA that the model agreements should be published next week.
“Adapted to pre-pandemic model”
As before the pandemic, short-time work must be strictly adhered to in the future. Since last year, the measure has gradually moved closer to its original goal, a support tool for special individual crisis cases, Labor Minister Martin Kocher (ÖVP) said in a statement. Short-time work is now “largely adapted to the pre-pandemic model,” said the politician, who believes that the “pandemic-related crisis mode in the labor market has been overcome.” The final regulation is expected to expire at the end of September.
Similarly, ÖGB President Wolfgang Katzian says: “We are pleased that short-time working is no longer necessary to the extent it was during the Corona pandemic, and maintain that it has served its original purpose – as a labor market policy measure for individual employees. companies that find themselves in an exceptional economic situation will be repatriated.” It is important for the trade unions that the employees have financial security. “Getting 90 percent of your last net income from short-time work is necessary and right, especially in times of record inflation.”
The question is to what extent the new model is crisis-resistant
Social partners disagree on whether the new short-time work regime can prevent mass unemployment if a new crisis emerges. While the Chamber of Commerce considers its design suitable for this purpose, the ÖGB believes that it should be investigated quickly whether the instrument needs to be adjusted. The consensus is that if the crisis reoccurs, funding should be increased.
According to the Ministry of Labour, a low three-digit number of employees is currently pre-registered for short-time work across Austria. According to the Labor Market Service, 13 short-time work projects were still running at 11 companies across the country at the end of August. At the height of the Corona crisis, more than a million employees had short-time work. The catering, hotels, specialty shops and body-related professions sectors were particularly affected. Since March 2020, the public sector has spent more than 10 billion euros on reduction of working hours due to Corona.
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.
