An agreement was reached in collective bargaining negotiations for 135 thousand employees in the metal technology sector on Thursday evening.
An average gross increase of 8.6 percent in wages and salaries is anticipated. Thanks to a sliding scale, low-income earners get ten percent more. The agreement will be valid for two years, and in the second year, one percent will be added to the changing inflation rate.
8.6 percent plus agreement with Metaller-KV
The new gross minimum wage or minimum basic salary is now 2,426.23 euros. The 10 percent increase will apply if gross income is just under 4,200 euros, after which it will drop to a maximum monthly increase of 400 euros. The increase in income was 5.5 percent in gross terms, to just under 8,000 euros. In the first year of study, income increases to 1,000 euros.
Federal government called on to quickly implement measures to strengthen the workplace
Following the agreement, employer chairman Christian Knill told political officials: “The federal government is invited to quickly implement measures to strengthen the business position. In particular, we expect a significant decrease in non-wage labor costs and a stronger fight against inflation. Because this agreement is the only way to finance the sector in the long term.” This is the way.”
The worst labor dispute in 60 years
After the bargaining, Reinhold Binder, PRO-GE’s chief negotiator, spoke about the toughest industrial dispute of the last 60 years. Inflation was compensated for and unsustainable one-off payments were avoided. His colleague Karl Dürtscher (GPA) added that with a degree, high-income earners show solidarity with lower-income classes. There will be a linear increase for all employees in 2025.
Wifo boss Felbermayr sees ‘really good results’
Today’s deal still has a small flaw. The agreement has not yet officially entered into force; It is subject to the special design of the new article called the competition protection clause. It is intended to be applied to companies with high personnel cost burden and allows the actual increase to be reduced. Negotiations on this are currently ongoing, but both sides have expressed confidence that they will find each other here.
Today, Wifo Director Gabriel Felbermayr praised the social partners in the metal industry. “This is a really good result,” he said on “ZIB2.” Both sides had embarked on new things. “This was a very important signal that our social partnership is still working,” the economist said.
For low incomes, inflation will be fully compensated, including a small plus. However, an agreement was reached that reached the highest level in history and brought a number of challenges to the industry. Agreeing on rounding off inflation plus one percent for 2025 is risky for both parties because inflation developments are unpredictable.
Eight negotiations required to reach agreement
Today’s agreement required eight rounds of negotiations; Negotiations on the collective agreement (KV) started on September 25. It is now valid for two years from 1 November 2023. There had previously been strikes in many companies belonging to the metal processing industry association. A collective bargaining agreement is still pending at the workplace, which employs about 450,000 people, and there are still warning strikes this week.
The new salary table for the metal technology sector, which will be valid retroactively from November 1, looks like this: In the lowest income group, the gross salary increases from 2,236 euros to 2,426 euros. There is a ten percent wage increase up to an income of 3,791 euros, a wage level of 9.6 percent, i.e. variable inflation, which forms the basis of this year’s KV talks. When the salary level rises further, the increase becomes 7.9 percent. The 400-euro cap on salary increases applies to incomes of approximately 4,150 euros.
Regarding the anti-competition clause, employers say it is intended for “difficulty situations”. “Depending on the personnel cost burden of the relevant company, compensation in the form of one-off payments, leave or training and further training measures may be agreed upon as part of a sustainable increase at company level as part of a reconciliation of interests. Details on this will be agreed in the next few days.”
More KV qualifications still pending
Metal industry associations for the mining/steel industry and non-ferrous metal industry met on Thursday night. As expected, the agreement is on par with today’s agreement in the metalworking industry. Here too, an agreement was reached on a hardship clause and a compromise was reached with reservations.
An agreement was reached today in the KV for the security sector, minimum wages and allowances will be increased by 9.2 percent. Night fee will be increased by 37 percent. Approximately 15,000 people are employed in the sector.
Vida on Fahrradboten-KV: “Employers’ offer of 2.5 percent is a slap in the face of employees”
No consensus was reached in the negotiations for bicycle messengers. In its statement today, Vida union said, “Employers’ 2.5 percent offer is a slap in the face of employees.” Collective agreement negotiations have been suspended until January 11, 2024. An agreement could not be reached in the fourth round of collective bargaining negotiations at A1 Telekom Austria.
Payment under collective agreement is prohibited in Austria. KV also applies to the temporary employment sector and regulates framework law such as holidays and bonuses in addition to pay.