Deadlock in spring bargaining round in the electrical and electronics industry in Austria

Bargaining for currently some 57.500 employees in the electrical and electronics sub sector was part of the overall metalworking negotiations until 2001, when the relevant branch unit withdrew from the joint employers´ negotiating team. The negotiating team on the employees´ side consists as usually of representatives from the white-collar Union of Salaried Employees (GPA) and representatives of our union, the Austrian Metal and Textile Workers´ Union (GMT)

First negotiating round on 31 March 2006

Negotiations were formally opened with an exchange of basic bargaining positions by the social partners on 31 March 2006.

Position of the joint union´ s negotiating team

Considering the overall positive economic situation in the electro and electronics sector, marked by significant increases in turnover rates by 6% in 2004 and profits by 27% as well as an outstandingly high productivity rate by 6,9% , the employees are expecting adequate pay increases which will support only sluggishly rising domestic demand.

Our demands:

Wage terms

• Increase in minimum wages/salaries
• Increases in effective wages/salaries
• Increase in apprentices´ remunerations
• Increase in additional payments, allowances

Non-wage terms

• One week educational leave for ALL employees per year
• One week parental leave for fathers after birth
• Obligation to include basic pay in the mandatory written record on terms and working conditions in the case of all-inclusive employment contracts

Position of the joint employers´ team

The employers pointed out to a lower inflation rate of 1.7 percent, forecast for 2005, and high pressure on costs due to international competitors.

In exchange of pay increases to set off the inflation rate, the employer demanded far-reaching relaxations of working time regulations:

• Extension of the extended bandwidth model, providing for a flexible distribution of working hours between 24 to 48 hours (without attracting any overtime payment!) instead of the current 32 to 45 hours basis;
• Extended bandwidth schemes also in combination with shift work

The first round of negotiations was broken off after six-hours without any result.

Second negotiation round on 5 April

Negotiations were resumed on 5 April in the afternoon hours. After a debate on the demand for educational leave, the employers refused to continue negotiations on non-wage terms. In the early evening hours they finally came up with a new offer for a 2,1 percent pay increase, adding that their offer will run off at midnight. We deemed not only their offer as not acceptable, but also setting a deadline as provocative. The talks were again broken off, given the very distant stance of the employer from our demands. A new negotiating round was agreed for 24 April.

Conference of works council representatives and workplace assemblies On 20 April some 500 works council representatives from enterprises in the sector gathered at a Conference in the GMT-headquarters and adopted a Resolution, reiterating their demand for acceptable pay increases not lower than the already in the autumn bargaining round agreed wage settlements and rejecting extension of working time without wage compensation.

Third negotiation round on 24 April

During the last negotiating round the employers only slightly improved their initial pay offer to 2,2 percent and continued to insist on their demands for unilateral relaxation of working time regulations. As their position remains still incompatible with our demands, the talks were broken off again and a new session agreed for 5 May.

Concerted action of employers in other economic sectors Interestingly, during the current negotiation round in the chemical industry and paper industry, the employers of these sectors came up with not acceptable pay offers (1,5% and 1,8%) in return for further extension of working time flexibility.

Further planned action

In case of failure of the upcoming negotiation round on 5 May, we will organise on 11 May various activities, ranging from protest actions, workplace assemblies, rallies et. to rise public awareness to our demands.