The economy is weakening and the industry in particular is in a persistent crisis. Working time reduction as a way to get through the difficult times with existing staff is hardly a problem. These are the backgrounds.
The figures speak for themselves: in the current economic survey, conducted by the Styrian Association of Industrialists among 46 large companies, two-thirds rate the business situation as only average. Only ten percent speak of a good order situation and one in three companies is considering staff reductions. Particularly bitter: the forecast for the business situation in the next six months is clearly negative, the index stands at minus 12.
“The recession in Styrian industry continues and shows how urgently we need measures to improve the competitive conditions for our companies,” says Christoph Robinson, the new managing director of Styria IV. Export-oriented companies in particular are having a hard time: “Domestic products have simply become too expensive compared to international standards,” says Robinson.
Andritz’s turnover fell
Andritz AG published its balance sheet for the first half of the year on Thursday. Sales at the Graz-based plant manufacturer fell by three percent due to a lack of large orders in some divisions. Profits remained stable at least.
Short-time working: Only two applications approved
During major crises in the recent past, especially during the Corona peak, short-time working was a widespread phenomenon. In short: Employees work less but receive almost their full salary – the state makes a major contribution. This allows staff to be retained even in difficult times.
This is hardly a problem at the moment. According to the AMS, only two applications have been approved in the whole of Austria this year. There is currently discussion about the refrigerator manufacturer Liebherr, which would like to have short-time working for almost 1,000 employees in East Tyrol, but is unlikely to get it approved. Minister of Economic Affairs Martin Kocher has also expressed his scepticism.
According to industry sources, short-time working is not really a problem in Styria. Background: Short-time working is primarily intended to help with crises caused by external factors, such as the pandemic or natural forces. It is not an instrument for long-term economic downturns. There is currently no recovery in sight.
Moreover, despite the rising unemployment, there are still enough vacancies, especially for qualified specialists. In other words, everyone who is laid off certainly has a chance of finding a new job.
“Use short-time working restrictively”
In this sense, State Councillor Barbara Eibinger-Miedl also expresses herself: “Since many companies are currently complaining about a shortage of skilled workers and labour despite the weakening economy, the instrument of short-time working should generally be used restrictively. However, if a company is considered a central employer for a peripheral region, this must be taken into account when assessing whether short-time working is permitted.” The Industry Association also advocates examining each individual case carefully.
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.
