Union prevents KV conclusion | Metal Technology Industry Association, November 2nd, 2023

2023-11-02 20:10:04

The current employer offer is 10% plus a one-off payment of 1,500 euros over a period of 24 months; Metal technology industry regrets demolition

Vienna (OTS) – The fourth round of negotiations for the collective agreement of the metal technology industry (MTI) did not result in an agreement today after intensive negotiations. The trade association’s updated and significantly improved KV offer “Work – Security – Prosperity” was offered in two versions:

Variant 1 is a two-year agreement with a 10% wage increase and a one-off payment of 1,500 euros, divided over two years. An early retirement model was also offered.
Variant 2 leads to an average wage and salary increase of 8.42%. This consists of an increase in fees of 2.5% plus a monthly fixed amount of 100 euros. There is also a tax- and duty-free one-off payment of 1,050 euros. With this model, the lowest employment groups even receive up to 10% more wages.

Both options were rejected by the unions.

Christian Knill, chairman of the Metal Technology Industry Association: “Today we have significantly increased our offering and placed particular emphasis on strengthening the purchasing power of our employees. The unions have nevertheless rejected our offer and are insisting on their demand for a sustainable wage increase of 9.6%. In the midst of the current recession, this is particularly incomprehensible and irresponsible and destructive for Austria as an industrial location.”

The initial situation has changed significantly in the last few weeks. Inflation is falling continuously and is forecast at 4% for 2024. At the same time, the recession is being felt massively in companies, and many companies are having to cut jobs, which is also reflected in the current labor market data.

“We were ready to finish today. The unions are apparently only interested in escalation and are acting politically. But we are the wrong contact to solve the inflation crisis. The warning strikes that have been announced are irresponsible because you cannot strike away from the recession. We are available for further discussions at any time and will work towards a reasonable and fair conclusion in the interests of the company and the employees,” concluded Knill.

The next hearing date is November 9th.

Background, data and facts

Industry:
The metal engineering industry (MTI) is Austria’s strongest industry. Over 1,200 companies from the mechanical engineering, plant engineering, steel construction, metal goods and foundry sectors form the backbone of the local industry. The metal technology industry directly employs more than 137,000 people and thus indirectly secures around 300,000 jobs in Austria. In 2022 it generated a production value of around 49.5 billion euros.

Real wages and salaries
The metal engineering industry is one of the best-paying sectors, the average monthly salary is 5,100 euros (71,400/year), the average wage is 3,670 euros (51,400/year) and the minimum wage is 2,230.00 euros. The real wages and salaries in the industry are on average between 12% and 28% above KV. Employees in the metal technology industry have regularly achieved real wage gains in recent years. Since 2009, the year of the international financial crisis, real wages (i.e. wages and salaries after taking inflation into account) in the metalworking industry have risen by 12%.

Inflation:
Inflation in Austria has been falling continuously for several months (currently 5.4%), but is still around 2% above the average for the countries in the euro area. This is a major competitive disadvantage for the export-oriented industry, because 8 out of 10 euros are earned in exports. Due to the significantly higher wage costs, MTI is continually losing its competitiveness.

Winnings:
The fact is that margins are falling in the metal engineering industry. There can be no talk of so-called “excess profits” in the industry. Individual economic sectors such as energy, construction, banking and parts of the service sector have actually achieved above-average profits. In the metal engineering industry, however, profits have declined. Every third company expects a negative operating result this year.

Family businesses, locally anchored:
More than 85% of the companies are family-run and medium-sized businesses (SMEs), employing an average of 100 people. Their economic development is correspondingly heterogeneous; this must be taken into account in the KV negotiations. It is not the most successful companies that should be taken as a benchmark, but rather all companies in the industry with their very different requirements and challenges.

Recession in the industry:
The entire industry is currently in recession, and the metal technology industry is also massively affected. In the first half of 2023, it recorded a decline in production of around 6%, and incoming orders even fell by 18%. Almost every third company expects a negative operating result (EBIT) this year. The overall economic environment is also negative. The overall economy is also in recession and productivity is negative. This means there are no productivity gains to distribute.

Further information as well as data and facts about the KV negotiations: