The Hallein machine manufacturer Emco established its first savings package on Thursday. Discussions about further measures will take place in January.
At machine tool manufacturer Emco, the workforce voted in favor of an internal short-time work model. At the same time, in a second agreement, workers will waive wage increases for the full amount of the collective agreement negotiated by the social partners.
Drop in orders and losses
This means that wages at Emco will increase by 3.3 percent instead of the 4.8 percent agreed in the collective labor agreement for the sector. This is made possible by a competition protection clause included in the KV for companies in difficult situations. The company is experiencing a significant decline in industrial and business orders and is said to have incurred significant losses since the previous year. There was talk of a double-digit million amount within 18 months.
Internal short-time working starts in January after your two-week company holiday during the Christmas holidays. The agreement is initially valid for six months, with a maximum of four Fridays per month cancellation possible – depending on the order situation. So less is earned. The maximum loss of income is twelve percent, the union assured.
In addition, a third cost-saving measure will be discussed in January: Emco proposes suspension contracts for its employees, which means that employees must temporarily resign – including a recovery guarantee with all entitlements – the ‘Krone’ reports. However, this is met with skepticism from the trade union and the employment service (AMS): due to the reemployment guarantee, there is no right to unemployment benefits.
Emco employs approximately 780 people worldwide, of which approximately 390 at the Hallein facility.
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.
