As the president of the Federal Chamber of Commerce explained in his report before the first round of negotiations, for the fifth time – Rainer Trelefick is again acting as chief negotiator for the employers’ side. And all negotiations in recent years have been marked by crises: first the CoV pandemic, then hyperinflation. Crisis determines daily life in retail, and “a crisis is never good for retail,” says Trefelik.
The business representative pointed out more than once that now is the time to get out of the crisis and go together. Although Trefelik didn’t want to get a firm offer from employees before actual negotiations began, he made it clear: Any demands the union enters into negotiations will be met with resistance from employees.
The union wants higher wages and more vacation days
The union had already made it known in advance. Veronica Arnost, who is leading this year’s negotiations for the Private Employees Association (GPA), on Wednesday reiterated demands for wages and salaries to rise above the rising inflation rate of 3.8 percent. Before negotiations began, Arnost did not say exactly how high the union’s idea of a contract would be. This will be communicated to the companies in the negotiations. Just after noon, it was announced that the union was seeking a 4.8 percent raise.
In addition to the wage hike, the union is also demanding more rest time. There are already specific demands here: three days off after five years of service, two more days off after seven years of service and another day to be added after ten years of service. Arnost justified the demand with work pressure, which has increased significantly.
The difference between selling and personnel costs
According to Trefelick, that’s unlikely. “I don’t think it’s possible to reach an agreement given the price hikes of the last twelve months,” he said before the talks began. Telling employees they want more income, but at the same time demanding more free time: “I’m missing the point”.
The boss’s chief negotiator, Trefelic, cited the general recession and low willingness to buy among consumers. “We’re running out of costs,” he insisted, adding that sales had recently increased by 9.8 percent, but personnel costs had increased by 21.3 percent. “And the view is not good,” Trefelik says. Arnost once again pointed out how important the right contracts are to retail — the industry isn’t one of the highest-paying sectors anyway.
Last year’s collective bargaining in the retail sector took an unusually long time and with counter-action by staff, the social partners have tentatively set four negotiation dates for this year, the last of which is November 21 – meaning Christmas trading could continue uninterrupted if an agreement is reached. With recent annual sales of 314 billion euros, retail is the largest employer in Austria after the public sector.
Metalheads this year without negotiations
However, both sides agreed that a competition protection clause like the one passed last year for the metals industry would make no sense for trade. Among other things, the industry was said to be too inconsistent for this.
Last year, the Metallers agreed not only to a non-compete clause, but also to a two-year contract. About 200,000 workers in the metals industry will receive up to 4.8 percent more pay as a result of two years of financial statements from last fall. The industry, which typically begins the fall pay round, is losing negotiations this fall.
Railway employees also expect long pay
The situation is different for railway workers: after a two-year contract in autumn 2022, negotiations are due to take place again this year. They also start on Wednesday. It was already clear that a quick deal was unlikely here.
The first round of negotiations for the 130,000 employees of the Austrian Socio-Economic Collective Agreement (SWÖ) ended without a conclusion on Tuesday. From the unions’ point of view, the employer’s offer is too low at the level of the inflation rate, and they have stuck to their demand of 6.1 percent. The next round of talks will be held on November 11.
On Wednesday, bosses said that despite the difficult circumstances, the KV negotiations will again reach a “reasonable conclusion” this year. At the same time, the SWÖ demanded greater financial security, legal certainty and involvement in legislative processes from the future government.
