The head of the Institute for Advanced Studies (IHS), Holger Bonin, is bringing an agreement that is “as flexible as possible” into play in the ongoing negotiations on a new collective agreement for metal workers. While there are companies that can afford a deal with 9.6 percent inflation, others cannot.
He therefore suggests that these “deviate downwards” to safeguard employment, as he said in the ORF press hour on Sunday. Bonin referred to so-called opening clauses that exist in other countries for companies that cannot afford the wage increase. According to him, this could be done through an application from the company in question to the social partners.
But not too flexible either
As Bonin said, it was “difficult to practically imagine the deal being much below the rate of inflation.” Because the association also has expectations that they must meet.
Regarding the one-off payments, which are unpopular with the unions, the economist said that it could be agreed in the collective labor agreement that these payments would be included in the negotiations the following year. Moreover, an option to translate the wage increase into fewer working hours, i.e. more free time, could be attractive for both parties; According to Bonin, it would also have an inflation-dampening effect.
Conflicts in the Middle East could delay recovery
The conflict in the Middle East could delay the 2024 recovery forecast by economic researchers. “If the risks of the Israeli conflict materialize now, this change will come later,” Bonin said. Whether there will be a global impact depends on the price of oil and whether Iran is drawn into the conflict.
However, Bonin does not see an oil crisis like that of the 1970s on the horizon, but the OPEC states are no longer as homogeneous as they were fifty years ago and there are other important supplier countries such as the US and Norway. Bonin sees a danger to supply chains due to the fact that two major trade links, the Suez Canal and the Strait of Hormuz, pass through this part of the world.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
