Negotiators are still below the undisputed inflation rate of 3.8 percent. The degree is 3.5 percent and is socially graduated. The minimum increase is 82.40 euros and the maximum is 437.80 euros.
The government and public employee unions managed to reach a salary agreement on Tuesday, just before a planned protest rally in central Vienna. This is valid for two years. This year, the average inflation rate is 3.5 percent, and next year the inflation rate will be increased by 0.3 percent. GÖD manager Eckehard Quin sees a “fair conclusion”.
The general conditions have been particularly difficult this year given the poor budget situation and the economic recession. The Ministry of Finance has also changed. The union’s confidence to face the federal staff representative election, which will take place on Wednesday and Thursday, is likely to have been further boosted by Quin strongly rejecting the staged charge for Tuesday’s vote. The employees’ representatives were concerned that it took a quarter of a year to even start the discussion.
Major rally canceled due to completion
The negotiators only succeeded when they met secretly, away from the public, for a meeting on Monday, which lasted, according to union representatives, until well after midnight. This morning, the conclusion was reached and the big announcement in front of the Federal Chancellery, where up to 30,000 people were expected, was canceled at short notice. Several buses from the federal states were already on their way to Vienna.
Grading is socially graded. The minimum increase will be 82.40 euros and the maximum will be 437.80 euros. At the end of 2025, an additional 0.3 percent should be added to inflation, taking the period from October 2024 to September 2025.
Two year degree
Quin recalled that a similar approach to a two-year conclusion was taken during the Metaller negotiations last year. The economic conditions had to be taken into account and so a method was found which also took into account the “needs of the budget”. However, the purchasing power of employees has been consolidated.
The young chairman of the city employees’ union, Christian Meidlinger, had a similar view. It was a “very good conclusion”. Because the starting position should not be forgotten with calls for a zero pay round. The solution that has now been found also contributes to the stability of the budget. In their joint presence, the union representatives tried to demonstrate the breadth of the employees they represented. They were joined by representatives from different sectors in professional clothing, from garbage collection to garden maintenance.
Minister for Civil Servants Kogler and Minister for Finance Mayr are also happy
Civil servants minister Werner Kogler (Greens) was also relieved. In a press release, he emphasized that the agreement was reached in the context of difficult conditions and circumstances. It is often forgotten that the public service competes with the private sector. It must therefore continue to be an attractive employer through salary agreements. With the market, the government is ensuring social fairness and relief, the Minister of Finance, Gunter Mayr emphasized.
For the decision to come into effect, confirmation is still needed from the National Council, which should follow in December. Although the coalition parties no longer have a majority, given the participation of social democrats on the trade union side, it can be assumed that the SPÖ will go along with the decision.
It must be determined in each state whether state and city employees receive the same increase, as is usually the case. This concerns a total of approximately 324,000 people who are affected. (APA)
How can public employee unions ensure fair compensation amid economic challenges?
Interview: The Future of Public Employee Salaries Amid Inflation
Time.news Editor (TNE): Welcome to Time.news, and thank you for joining us today. We have with us Eckehard Quin, the GÖD manager, who recently played a pivotal role in negotiating a new salary agreement for public employees in Austria. Eckehard, welcome!
Eckehard Quin (EQ): Thank you for having me! It’s a pleasure to be here.
TNE: Eckehard, let’s dive right in. The negotiating teams managed to agree on a salary increase just before a major protest rally was set to take place. This must have been a tense time for everyone involved. Can you tell us how close the negotiations were to breaking down?
EQ: It was indeed a challenging process. We knew there was significant pressure from our members and the impending rally, which could have made the situation much more complicated. It required some late-night discussions, and we had to meet away from the public eye to find common ground. Ultimately, it was about balancing the needs of public employees with the constraints of the economic situation.
TNE: The inflation rate for this year is notably at 3.5 percent, with projections for next year. How significant is this figure in this context of the salary negotiation?
EQ: The inflation rate plays a crucial role in determining salary adjustments. Our agreement reflects a responsible approach, considering both the economic realities and our workforce’s need for fair compensation. It’s essential that our employees can maintain their purchasing power, especially in times of inflation.
TNE: You mentioned the methodology in reach agreements. Can you elaborate on the social grading of the pay increase?
EQ: Absolutely. The agreement consists of a minimum increase of €82.40 and a maximum of €437.80, depending on the employees’ roles and responsibilities. This social grading ensures those who may be more affected by economic changes receive necessary support, promoting fairness across the board.
TNE: It sounds like the negotiations had to navigate tough budgetary constraints. What were some of the most significant hurdles you faced in this process?
EQ: The broader economic recession certainly influenced our negotiations. The budget situation is strained, which meant we had to ensure any agreement was sustainable for both employees and the government. Our focus was not only on increasing salaries but also ensuring the stability of public finances in the long run.
TNE: It’s fascinating to see that public employee representatives are set to vote shortly after this agreement. How do you think this agreement influences their confidence going into this election?
EQ: I believe this agreement strengthens the unions’ position significantly. By rejecting the notion of a zero-pay round and instead focusing on fair increases, we’ve shown members that their voices are heard and their needs are prioritized. That, I think, will resonate with voters.
TNE: A final thought—what’s next on the horizon for public employee negotiations? Are there particular areas you believe will require more attention moving forward?
EQ: Looking ahead, we need to remain proactive about addressing the long-term impacts of inflation and economic volatility on employee salaries. Moreover, we may also need to discuss other aspects like working conditions and benefits to ensure we are supporting our workforce comprehensively.
TNE: Thank you, Eckehard, for your insights and for shedding light on this significant development in public employment. We appreciate your time and wish you all the best in the upcoming election and future discussions.
EQ: Thank you! It was my pleasure.