After three rounds of negotiations, agreement has been reached on the collective labor agreement for the social economy: the actual and minimum wages of the approximately 130,000 employees in the sector will increase by four percent.
Allowances and allowances will also be increased by four percent, as announced by the GPA and Vida unions and the Austrian Social Economy (SWÖ). The new collective labor agreement applies from January 1, 2025. There are also innovations in the framework law.
“In this way we could secure more money to intervene and also achieve a better classification for colleagues in the administration,” said Michaela Guglberger, negotiator for the Vida union, according to the broadcast. The large flexibility allowance increases to 50 euros, the small flexibility allowance increases to 25 euros. Furthermore, the user groups for administrative employees have been improved and the additional collective labor agreement for healthcare subsidy has been extended until the end of 2025. Social security was agreed for childminders.
SWÖ: Real wage growth achieved despite recession
“With the salary agreement of +4 percent, we safeguard the purchasing power of the employees,” says Eva Scherz, negotiator of the GPA trade union. “This conclusion was only possible because our colleagues stood behind us and showed strength during factory meetings and rallies.” Factory meetings and demonstrations took place before the third round of negotiations.
The employers’ side also praised the agreement. Despite the recession and poor economic prospects, real wage growth was achieved for healthcare and social sector workers, but this was not an easy conclusion. “The coming year will be very difficult economically, but at the same time it must be clear that the health and social sector must be worth something to politics,” says SWÖ chairman Erich Fenninger.
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.
