The union and the Chamber of Commerce did not reach an agreement after a negotiation marathon that lasted almost ten hours. A new appointment is missing. New warning strikes and rallies are planned next week. A Wifo expert advocates an average degree below rolling inflation.
It failed due to the “economic framework conditions,” said WKÖ trade chairman Rainer Trefelik after the negotiations were broken off. “We have calculated a wide variety of variants,” says Trefelik. A salary increase of 8.2 percent would have been “conceivable,” but more was “unaffordable” for the companies. Rolling inflation from October 2022 to September 2023 was 9.2 percent.
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The union’s chief negotiator Helga Fichtinger criticized the employers’ “delaying tactics”. “That’s not fair.” According to its own information, the union has proposed a socially graded salary between 8.58 and 9.38 percent. That would be an average salary increase of 8.96 percent. An opening clause for companies in economic difficulties was apparently also on the table. According to the union, employers only offered an increase of 8 percent plus 10 euros.
Conversations at a “higher level”?
Trade unionist Fichtinger is now pushing for talks at a “higher level”, for example between ÖGB boss Wolfgang Katzian and Economic Chamber President Harald Mahrer. Another round of KV negotiations is not planned for next week. Meanwhile, the GPA has also announced new warning strikes and rallies for next week.
Due to the failed negotiations, the WKÖ federal trade division is now recommending that its member companies voluntarily increase the collective minimum salaries by 8 percent. A recommendation offers “no legal certainty,” criticized Fichtinger.
Wifo expert for social graduation
The situation in retail is more difficult than in industry, says Wifo expert Benjamin Bittschi, according to ORF radio Ö1. But: The “instruments” possible for an agreement are on the table. In contrast to industry, retail has been in recession since the pandemic year of 2020, with the exception of 2022. “I understand the employers’ side that every tenth is haggled over,” said the wage expert from the economic research institute (Wifo) in the “Mittagsjournal” on Saturday.
There will be a need for social differentiation, said Bittschi. It also requires a “competition protection clause” and, on average, a deal below rolling inflation.
Negotiations since the end of October
The trade association, however, regretted the renewed failure and reiterated that employers are now recommending that companies increase minimum salaries by 8 percent. “After the union barely moved on its demands, a deal would have been accompanied by unforeseeable economic risks, which would have caused many more company closures,” said trade association managing director Rainer Will in a broadcast on Saturday morning.
The KV talks have been going on since the end of October and were accompanied by company meetings, public rallies and warning strikes during the Christmas season. The union entered the negotiations demanding an 11 percent increase in wages. The employers only made their opening offer in the third round with a plus of 5 percent and a one-off payment of 800 euros.
430,000 employees affected
The commercial KV is about the salaries of 430,000 employees and 15,000 apprentices. It is the largest industry collective agreement in Austria. Almost two thirds of the 430,000 employees are women; in retail the proportion of women is even higher. Almost 60 percent of women in retail work part-time, while the part-time rate for men is only around 13 percent.
