Due to high inflation and the uncertain economic situation, the Metaller-KV negotiations are under “particularly difficult circumstances” this year, the employers’ side said on Thursday. “We can only distribute what we earn,” said Chamber of Commerce president of the metalworking industry, Christian Knill. “Our task is not to guarantee purchasing power in Austria.”
The starting gun for the negotiations in the metal technology sector is 25 September. Traditionally, annual inflation over the past twelve months is used as a benchmark. The average inflation rate for the period September 2022 to August 2023 was 9.6 percent.
In addition to inflation, the union typically negotiates productivity gains to be passed on to workers.
Expectations have been tempered
Employer representative Knill tempered expectations even before negotiations started. Like many sectors of the economy, the metal technology industry is also struggling with rising costs for materials, personnel and energy. In the first half of 2023, the industry realized a production value of 24.8 billion euros, which corresponds to a price-adjusted decrease of 5.5 percent compared to the previous year.
Incoming orders fell 18 percent in the same period. A production decrease of approximately 6 percent is expected for the full year. In addition, almost every third company expects a negative result (EBIT). That is why the employer negotiator did not want to promise compensation for inflation.
“There is little room for maneuver in wage negotiations this year, we have to see that we find new solutions. The previous formulas have no future given the high inflation”, said the employer representative. However, Knill was hesitant to make specific suggestions, not wanting to anticipate negotiations with the union. In any case, the top priority must remain job security. There are approximately 137,000 people employed in the metalworking industry.
Source: Krone
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