Chamber of Labor Criticizes High Costs for "Interim Parking" at AMS
"Instead of employment income, those affected only receive unemployment benefits or emergency assistance, and the company saves all personnel costs during this time and does not have to pay any contributions as compensation to the AMS," criticized the Chamber of Labor Upper Austria in a statement on Thursday. Too many companies are transferring their entrepreneurial risk and personnel costs to the general public.
Chamber of Labor Criticism: "Interim Parking" at AMS with Temporary Employment Agencies "Obviously Business Model"
With temporary employment agencies, interim parking is "obviously part of the business model." "Profits are privatized, the costs are borne by the general public. Numerous re-employments with the same employer occur after a few weeks," the Chamber of Labor points out. "Parking" at the employment service across all industries increases unemployment in Austria by about one percent. "Instead of 6.9 percent, we would be just under six percent without this practice," calculates the Chamber of Labor. And it warns: "Especially for the affected employees, this system has serious consequences, they have to accept significant income losses and often find themselves in a recurring cycle of unemployment and temporary re-employment," says AK Upper Austria President Andreas Stangl.
Chamber of Labor Warns: Massive Income Losses for Employees
The Chamber of Labor further states: Around 47,000 companies rehire former employees after up to a year of unemployment. Considering only short interruptions of up to two months, the share was still 12.1 percent. "Over 82,000 employees suffered massive income losses of up to two months, as unemployment benefits only amount to 55 percent of net income. For another 88,000 employees, the income loss lasted between two and twelve months," the Chamber refers to the study by the Austrian Institute of Economic Research (WIFO). Stangl demands a participation of companies "in the costs they cause" for these "temporary layoffs." Furthermore, short-time work should be more strongly anchored in the awareness of companies as an alternative to these layoffs, and there should be stricter enforcement of the early warning system.
(APA/Red)
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