On Monday evening, the second round of negotiations for employees of the social economy collective labor agreement failed. The meeting was adjourned after ten hours and the union announced protests such as demonstrations and work meetings.
The social economy includes companies and organizations that offer social services, for example in child and youth welfare facilities, in facilities for the disabled and in healthcare. Approximately 130,000 people work in the industry in Austria.
The new collective labor agreement is being renegotiated for them. The union is demanding a salary increase of 6.1 percent, but that is too high for employers. “We are offering inflation for those affected for twelve months from the start,” said negotiator Yvonne Hochsteiner. It is not yet clear whether the funding agencies will go along with this. Inflation is 3.53 percent for the period November 2023 to October 2024.
GPA: Appreciation is missing
“We are willing to discuss certain points, but everything must remain within a realistic framework,” Hochsteiner said. GPA negotiator Eva Scherz countered that pure inflation compensation does not show the appreciation workers deserve. To make the sector more attractive, both higher salaries and better working conditions are needed.
The union has now announced company meetings across Austria, a works council conference in Styria and a demonstration in Vienna. A meeting is also planned in Linz. On November 22, employees stop their work for six minutes.
The next round of negotiations will take place on November 25. The new collective labor agreement applies from January 1, 2025.
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.
