Successful conclusion of bargaining round in Austrian metalworking and mining industry
On 4 November 2004 at noontime after an intense almost 24- hours lasting marathon session our joint negotiating blue- collar GMT (Austrian Metalworking and Textiles Union) and white-collar GPA (Salaried Employees’ Union) team managed to reach a new collective agreement for about 113.000 blue-collar workers and 74.000 white-collar workers in the metalworking and mining sector.

This year’ s bargaining round was the most difficult we had for a long time, it took four rounds of talks to overcome the deadlock and conclude a settlement. While we prioritised the final agreement on a common pay system for the sector’ s blue and white collar workers, the employers demanded in exchange far reaching relaxation of working time regulations.

Course of negotiations As already reported earlier, negotiations were opened on 27 September 2004 with a presentation of our list of demands, including an increase of minimum wages/salaries, an increase of effective wages/salaries, an equivalent increase in additional payments and compensations of expenses as well as increase in apprentices’ remunerations.

First session: no move from the employers’ s side The first round of talks on 8 October was marked by a discussion on the overall economic situation. After years of persistent slowdown, first signs of economic recovery are appearing. GDP is expected to rise again to 1,9 percent (in 2003: 0,7%), the forecast for 2005 is 2,5 percent. In contrast, private household consumption remains subdued, as incomes are lagging behind and energy prices are high. The substantial increase in raw material prices is pushing up inflation: the forecast inflation rate is 2,1 percent for 2004 (in 2003: 1,3 percent). Productivity (GDP per employee) will be slightly rising to 1,2 percent from last year’ s 0,8 percent.

Following intense talks on the introduction of the single common pay system, the employers’ team broke off negotiations in the early evening hours.

Second session: Exaggerated employers’ proposals for working time flexibility/ works council assemblies all over Austria

After the failure of the second round of talks on 18. October, broken off again by the employers who had put forward demands for more flexible working time schemes aimed at extending net working hours, we organised staff assemblies and works council meetings all over Austria to inform our works council members about the state of negotiations and the employers’ demands.
Third session: Deadlock- employers break off again On 29 October talks were resumed and again broken off after 16 hours on employers’ initiative who wanted to have an internal consultation and the feedback of their internal bodies before returning to the negotiation table.
Fourth session: Critical stage of negotiations Though we hoped for a swift conclusion on the last, already fourth round of talks, the employers went on dragging out negotiations, ignoring our arguments and external experts’ assessments in favour of an introduction of pay harmonisation for blue and white collar workers. They confronted us with their own calculations which would have brought about substantial financial disadvantages for both employees categories.
Following outspoken statements from our negotiation team, expressing their anger at a very critical stage of talks, the employers changed their mind and finally agreed on increases in wages/salaries and the adoption of the common pay system.

Key results of the bargaining round
Pay
• Increase in minimum wages/salaries by 2,5 percent

• The new minimum wage will thus stand at 1.271, 78 Euro

• Increase in effective wages/salaries by 2, 5 percent

• Increase in apprentices’ remunerations by 2,5 percent

• Equivalent increase in collectively agreed additional payments and compensations

• The new collective agreement falls due on 1 November 2004

Agreement on a new common pay system for blue and white collar workers The introduction of new common pay system to mark the end of the traditional unequal treatment of blue and white collar workers also in terms of remuneration and validity of job classification after a four-year period of intense negotiations was our main demand of this year’ s bargaining round.

Under the new agreement the following key points of the new common pay system are established:

• a new grading system of 11 occupational groups

• a new scheme for automatic pay increments relating to wage/salary levels within each of the new 11 grades, laying down the number and amount of automatic pay increments which shall now apply for blue and white collar workers. The increment applies to both (collectively agreed) minimum pay and effective pay and is fixed as a certain percentage of the collectively agreed minimum pay for each grade. More precisely, two fixed and three flexible pay increments based on a works agreement between management and works council are foreseen.
• Aside from the new grading and increment system an annual obligatory pay increase to be distributed flexibly among employee groups at plant level on the basis of a works agreement (“internal pay round”) is stipulated.
• The new common pay system will take effect from 1 November 2005
Regardless of the common pay system and the equal treatment in terms of labour law, separate collective agreements and works council structures for both categories will continue to exist.
Non pay issues

Working time The employers’ attempts to introduce more flexible working time schemes to extend employees’ net working hours met our fierce opposition and could be finally averted.
Simplification of the “Extended bandwidth flexible working time scheme” The rules for compensation of working hours over 40 by time off, as laid down in the collective agreement on “extended bandwidth”, allowing for a flexible distribution of working time between 32 and 45 hours, will be simplified.

4-day weekly working time In case of a distribution of working time over 4 days, two additional paid overtime hours will be allowed, resulting in a 12 hours working day (10 hours normal working time + two hours overtime).

Establishment of a working group on combating discrimination in collective agreements in line with the three EU-directives against discrimination at the workplace A joint working group will review bargaining with a view to identify and eliminate discrimination in collective agreements and bring it in line with EU-directives against discrimination at the workplace.

Talks on collectively agreed pre retirement schemes During last year’ s negotiation round a joint working group was established on drafting pre retirement schemes in order to alleviate the negative effects of the planned pension reform 2003 /the current modified harmonisation of pension systems.