Further developments during the current wage bargaining roundin the Austrian metal industry

Autumn collective bargaining round in Austrian metalworking & mining sector broken off
On 12 October 2006 the second negotiating round for a new agreement in the Austrian metalworking and mining sector, covering some 180.000 employees, took place. Due to the differing positions of the bargaining parties involved- for the trade unions our union, the blue-collar GMTN and the white-collar Union of Salaried Employees GPA and for the employers the counterparts in the industry section of the Federal Economic Chamber WKÖ –negotiations were broken off after 12 hours.

Positions of the employers
Substantial differences on the key issues of the bargaining round´ s agenda prevailed also during the second set of negotiations between trade unions and employers and prevented them to reach an agreement. The employers insisted on their demand for a flexible pay scheme with wage increases only compensating for the rate of inflation and making additional pay dependent on the individual company´ s profitability.
Furthermore, they refused to negotiate over the unions´ demands for a one-week paid leave for training.

Trade union response
The trade unions negotiating team rejected the proposed flexible pay system , providing additional pay increase beyond the inflation rate as mere one-off payments without lasting effect on future pay as contradictory to the principles of solidaric productivity oriented wage bargaining . However, they stressed their willingness to negotiate over proposals that can be acceptable for both parties and will not signify income losses for employees .

Regional works council assemblies on 13 October
One day after the interruption of the negotiations regional meetings of works council members, organised by the GMTN and the GPA took place all over Austria in order to inform about the current situation of the bargaining round. The participants in these meetings expressed their anger about the uncompromising stance of the employers, denying a fair share for the employees of the profits, the currently boosting economy yields. In addition, the employers´ unwillingness to negotiate over a collectively agreed paid one-week training leave and thus contribute to improve their employees´ qualification standard, was met with incomprehension by the works councils.

Upward revised economic data
Meanwhile, the Austrian Institute for Economic Research raised its previous forecast for economic growth for this year from 2.6 percent to 3.1 percent after studying the trends for growth from third quarter data released last week. Economic growth will remain solid also in 2007 with 2,5 percent .
Next bargaining round on 19 October 2006

Negotiations will be restarted on 19 October 2006. On the following day, the employees will be informed about the outcome of these negotiations. On 22 and 23 October company meetings are scheduled to take place all over Austria in order to decide on further action in case of a failure of the next negotiation round.

Manfred Anderle