CB round in Austrian metalworking sector 2013
The 2013 autumn bargaining round for the pattern-setting metalworking sector
opened on 20 September 2013 when the sectoral unions PRO-GE and GPA-djP
presented their list of demands to the employers, including demands for
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increases in minimum wages/salaries,
increases in effectively paid wages with a particular focus on low wage groups
as well as increases in apprenticeship remunerations, in allowances and
additional payments.
Return to the bargaining community of six sub- sectoral employers´
associations of the metalworking sector
additional paid time off for stressful and physically demanding work
Validity of the new collective agreement as from 1 November 2013
Before the 2013 bargaining round began, the chief negotiators of the largest sub
sectoral employers´ association, the machinery and metal ware industry (FMMI)
announced their intention to bargain separately again within each of the six
subsectors of the metalworking sector as they did last year, when they decided to
quit this voluntary bargaining community . It was argued from the employers´ side
that separate negotiations would allow for more discussion of the specific conditions
in each subsector. The result was 12 separate collective agreements for the six
subsectors-one agreement each for white-collar and blue-collar workers in each
sector-negotiated during 14 bargaining rounds.
Altogether, about 180,000 employees are affected by bargaining in the metal sector.
In the machinery and metal ware industry there are around 120,000 workers,
followed by the automotive industry with around 30,000, the mining and steel industry
with 17,000, the foundry industry with 7,000, the non-ferrous metal industry with
6,500 workers, and there are around 6,000 in the gas and heating supply sector.
In order to protest against the separation of wage agreements, declaring it as a
breach of the traditional social partnership, some 2.500 delegates gathered at a kickoff nationwide works council conference before the opening of this year´s bargaining
round. However, at the first meeting on 20 September only three out of six sub
sectoral employers´ associations of the metalworking industry were present.
With the FMMI, the largest association, negotiations started on 24 September and
were broken off after seven hours´ negotiations. The key controversial issue during
the first meeting was the inflation rate as reference for wage increases: while our
unions´ negotiating team base their demands on an annual inflation rate of 2, 4
percent over the negotiating period, the FMMI employers insist on an inflation rate of
1, 8 percent in August as reference value. In addition, the employers renewed their
demands for more flexible working time regulations at company level.
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On 7 October the unions´ chief negotiators announced during a nationwide works
council conference their aim to secure a pay rise of 100€ in effectively paid
wages/salaries with a minimum increase of at least 3,4 percent and equivalent
increases in minimum wages/salaries for all 180.000 workers of the whole
metalworking sector. They backed their request by pointing out that these pay rises
will in particular improve the income of earners in low wage groups with a minimum
increase of 100€.
Economic outlook:
For the whole of 2013, GDP in Austria is expected to edge up by a modest 0.4
percent. With international trade picking up, demand and output growth should
accelerate to 1.6 percent in 2014. Hence, increases in real wages increases would
stimulate private consumption growth and support economic recovery.
However, the employers of the FMMI did not give up their intransigent attitude during
the following two negotiating rounds. During the third and meanwhile last meeting on
15 October the employers offered merely a 2 percent increase in effectively paid
wages with a maximum increase of 70 Euro which is markedly under the inflation rate
without any increases in minimum wages/additional allowances and payments. In
exchange for their „offer“ they demanded flexible working time accounts at company
level, allowing for time debits of 167, 4 minus hours as well as time deposits of plus
hours167,4 to be balanced off within a reference period, not defined by collective
agreement. Extra hours or credit hours will attract no extra bonus.
The unions´ negotiators fiercely rejected the last employers´ offer as an attack on
existing social partnership, as for the first time employers excluded minimum wages
and salaries from pay rises and called their demand for flexible working time
accounts a wage cutting measure.
Though the first negotiation rounds with the employers of the remaining sectors were
more constructive than with the FMMI, so far no tangible wage settlement is in sight.
Between 16 to 18 October more than 300 works meetings were held by our
negotiating unions, PRO-GE and GPA-djP at businesses of the FMMI subsector
across the country to decide on what steps, including industrial action, we as unions
would take.
To step up the pressure, on the eve of the next negotiating meeting between FMMI
employers and unions scheduled for 22 October, in front of the employers´ chief
negotiators businesses on 21 October demonstrations and rallies will take place.
Should the next negotiating round with the FMMI employers on 22 October 2013 fail
again, on 23, 24 and 25 October works meetings will be organized to prepare for
possible industrial action.
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