Collective bargaining round in Austrian electrical and electronics industry concluded

During the night from April 26th to 27th 2007 the joint negotiating team on the employees´ side, the Metalworking, Textiles and Food-Processing Union (GMTN) and the Union of Salaried Employees, Printing, Journalism and Paper (GPA-DJP), signed a new agreement with the employers of the sector, covering about 50.000 employees. After we had delivered our joint list of demands to the employers on March 23, 2007 the first bargaining round followed on April 16, 2007.

Our list of demands included increases in minimum and effective wages/salaries plus equivalent increases in collectively agreed additional payments and apprentices´ remunerations and the improvement of legal framework regulations.

In more detail, the new agreement contains the following provisions:

Both minimum wages/salaries and effective wages/salaries as well apprentices´ remunerations will increase by 2, 7%, beginning on May 1, 2007. The new minimum wage will thus amount to € 1.353,28.

Conclusion of a “Distribution option”. According to this, the individual employer is not obliged to increase the workers effective pay by 2, 7%, but is entitled to distribute flexibly part of the pay increase among certain employee groups, given that an average pay increase of 3,0% instead of 2,7% and a minimum pay increase of 2,5% for the individual employee is then observed. The agreement provides for the conclusion of a distribution option on the basis of a works´ agreement between employer and works council till July 20th, 2007, coming into effect on May 1, 2007.

Introduction of a “One-off payment option”: as a new flexible wage element a works´ agreement between individual employer and works council can provide for paying out flexibly 0, 2 % of the total wage bill. In addition to a minimum effective pay increase of 2,5% for the individual employee, a one off payment , amounting to not less than 8,4% of his/her monthly pay (two further options instead of the individual monthly pay are eligible :

2,5% individual pay increase plus an additional one off payment amounting to not less than 8,4% of the average monthly pay falling due for his/her wage group;

2,5% individual pay increase plus e an additional one off payment amounting to not less than 8,4% of the average total wage bill.

However, the new agreement clearly stipulates that both flexible wage elements (distribution option + additional one off payment) cannot be agreed upon jointly;

Additional payments will increase by 2% and expense allowances by 1,6%, beginning on May 1, 2007;

Improvement of framework regulations regarding expiry dates for claims arising from termination of employment (overtime pay, additional payments and travel allowances, etc): the time limit will be raised from 4 to 6 months.

All provisions of the new agreement will come into effect on May 1, 2007.