The collective bargaining for the metalworking industry started today, Monday. First of all it is about reaching agreement on the preconditions, it was said. The union is demanding a pay increase of 11.6 percent for about 200,000 employees. The basis for this is the rolling inflation rate of 9.6 percent (see video above).
The union also wants the sixth week of vacation to be easier to obtain and that there should be the option to opt for more time off instead of a higher salary. In addition, the approximately 8,000 students must be placed on an equal footing with graduates of higher professional education after graduation.
Orders are declining
The employers’ side pointed to a production decline of 5.5 percent and an order reduction of 18 percent. Of the more than 1,200 companies in the field of mechanical engineering, installation technology, steel construction, metal products and foundries, almost one in three expects a negative operating result. So far, it should be a “classic round of negotiations”, explaining the general terms and conditions, such as workers’ demands and economic data.
According to economists from the Economic Research Institute (WIFO) and the Institute for Higher Studies (IHS), high degrees do not lead to a wage-price spiral, as 80 percent of production would be exported anyway. However, the higher purchasing power would be offset by the difficult economic environment for the industry.
Minister of Economy and Labor Martin Kocher (ÖVP) referred on Monday to the relatively high inflation, the economic slowdown and questions about competitiveness. “There are difficult conditions for wage negotiations,” he said. At the same time, he was confident that a new collective labor agreement would be concluded.
The talks are expected to last until the early evening hours.
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.
