After Metalworkers' Collective Agreement: Union Sees No Template for Other Sectors

"The crisis of the metal industry is not the crisis of the entire country," said vida chief Roman Hebenstreit on Thursday at a press conference in Vienna. A collective agreement conclusion below inflation in the transport and service sector endangers economic recovery, the welfare state, and municipalities.

Union warns: Social insurance and municipalities feel low collective agreement conclusions

The top union official pointed to the economic effects of collective agreement conclusions, especially when in low-wage areas - such as the service sector - the wage increase flows entirely back into consumption. "Wages are the engine for recovery." Austria's economy was in the longest recession since the post-war period in 2023 and 2024, with minimal economic growth of 0.0 to 0.2 percent forecasted for 2025.

Economic researchers also view the autumn wage round in a differentiated manner. However, the conclusion of the metalworkers cannot be directly applied to other sectors, said WIFO economist Benjamin Bittschi in the Ö1 "Morgenjournal" of ORF radio on Tuesday. For example, minimum wages in retail are significantly lower, and the impact of inflation is stronger. The wage conclusion in the metal industry, significantly below rolling inflation, is believed by Bittschi to have saved thousands of jobs.

The vida chief warned of financial impacts on social insurance and municipalities due to low wage conclusions, as this would result in less significant increases in social insurance contributions and municipal taxes. "If we hit the brakes here, we endanger the entire country," warned Hebenstreit.

Metalworkers' collective agreement conclusion slowed down railway collective agreement negotiations

The union vida represents employees in the sectors of services (including trade/warehousing, hair salons, cosmetics, foot care), railways, facility management, health, air and sea traffic, social services, and road.

On Monday, alongside the metalworkers' wage round, the collective agreement negotiations for the 55,000 employees at the Austrian railways also began. The negotiations had started constructively, but after the announcement of the metalworkers' collective agreement conclusion significantly below the rolling inflation, the mood on the employer side shifted, said the chairman of the railway sector in the union vida, Gerhard Tauchner, at the press conference. They were "quite appalled" by what happened on Monday because they had been "almost finished" with the collective agreement conclusion in preliminary talks. The next round of negotiations is scheduled for October 1st.

Collective Agreement Negotiations also for Trade Workers, Air Traffic Controllers, and Security

For the approximately 350 air traffic controllers of Austro Control, who handle all take-offs, landings, and overflights, the collective agreement negotiations started at the beginning of September. The union demands compensation for the annual inflation of 2025 plus "a fair share of the massively increased air traffic volume." "The performance of the air traffic controllers is extraordinarily good despite the staff shortage. However, we have long reached our capacity limits," said the chairman of the vida aviation sector, Daniel Liebhart. Currently, 80 controllers are missing nationwide in Austria.

On November 3rd, the collective agreement negotiations for trade workers will begin. Around 150,000 employees work in the warehouses and logistics of trade. "After the wage waiver last year, they need a real wage increase," demanded the chairwoman of the vida services sector, Christine Heitzinger.

With the Eurovision Song Contest in May 2026 in Vienna, the working conditions in the security industry are also coming into focus. "Especially in an industry with a gross minimum wage just over 2,100 euros, it must be clear: wages up - and for all wage groups," demanded vida chief Hebenstreit. The collective agreement negotiations for the security industry start on October 23rd.

(APA/Red)

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