New collective agreement for the blue collar workers in the temporary agency sector

In the evening hours on 7 December 2004 our union, the Austrian Metal and Textile Workers’Union (GMT) managed to reach a new collective agreement with the employers of the hiring out trade subunit of the Austrian Chamber of Economy. The new collective agreement for 2005, concluded after swift, but intense negotiations, will cover about 33.000 blue collar workers. The results, achieved under the new deal, will contribute to strengthening purchasing power and thus securing the living standard of the workers also in this sector.

The following provisions concerning pay and conditions were agreed:

Pay:
- The average increase in collectively agreed minimum wages will be 2,5%
- Equivalent increase in additional payments and reimbursements for expenses
- Provision that temporary agency workers continue to be paid the local overpayment to the basic wages, received by comparable workers in the user company as well as customary wages above the collectively agreed rate
- Increase in pay supplements in the electrical and electronics industry from 1 May 2005, when the introduction of a common pay system for blue and white collar workers falls due which will provide for automatic pay increases also for blue collar workers. The increases in these pay supplements will vary between 3 percent for unskilled and 4 percent for skilled temporary agency workers, taking effect from 1 may 2005. For the first time also fitters will benefit from these pay supplements.
- The new agreement will take effect from 1 January 2005

New minimum hourly wages (taking effect from 1.1.2005):
Wage group Hourly wages (in €)
- Technician: 12,77
- Qualified skilled worker: 10,38
- Skilled worker: 9,05
- Qualified worker: 8,05
- Semi-skilled worker: 7,18
- Unskilled worker: 6,70

New collectively agreed reimbursements of expenses, effective from 1.1.2005
- Allowance for work during daytime exceeding 5 hours 9, 20 €
- Allowance for work during daytime exceeding 9 hours 19,70 €
- Allowance for work during daytime, including overnight stay 26,40 €
- Flat rate allowance for overnight stay 15,00 €

Framework conditions
Increase in branch related pay supplements A key issue on the negotiations’ agenda concerned the increase in pay supplements for temporary agency workers in sectors, as the metalworking industry and the electrical and electronics sector where blue collar workers will benefit from a collectively agreed automatic pay increases scheme. In order to avoid a gap arising between a seniority related steadily increasing pay rate of comparable blue collar workers not yet covered by a pay harmonisation system.

Under the new agreement according to qualification increases in pay supplements for assignments in the electrical and electronics industry were agreed. With effect from 1 May 2005 unskilled temporary agency workers will receive an increase in pay supplements by 3 percent, whereas skilled workers will be paid an increase by 4 percent. As a result, the total sum of the pay supplement will be 9 percent for unskilled workers, 13 percent for semi-skilled workers and 18 percent for skilled workers. On the basis of an internal wage system at plant level the pay supplements will be 13 percent, 16,5 percent and 19,8 percent respectively.

New Regulations for piece and performance related work Temporary agency workers performing piece work or other performance related work over a period of 4 weeks have to be paid either the customary local performance related wages or premia or have to receive a pay , exceeding by 30% the collectively agreed pay rate, which normally falls due for comparable workers in the user company.

Branch related supplements will for the first time also be provided for montage and piece workers (3 percent for unskilled and 4 percent for skilled workers). In case of piece work the pay supplement will be 3 percent for unskilled, 4 percent for semi skilled and 5 percent for skilled workers.

Branch related pay supplement falls due also in case of incapacity for work In case of an assignment in a sector where branch related pay supplements are stipulated, these will also fall due during periods of continued pay in case of holidays or sickness.
Plans for an intersectoral training fund A working group will be established for setting up a common training fund;

Common initiative to reduce work accidents The social partners will launch activities in order to combat the high rate of work accidents among temporary agency workers.