labour relations in austria

86
FES - Ideas - Madrid 8.2. 2010 Eva Belabed 1 Labour Relations in Austria Fundacion Ideas – Friedrich Ebert Stiftung February 8, 2010 – Madrid Successful Labour Relations Models in Europe: the German, Austrian and Danish Models

Upload: fox

Post on 13-Feb-2016

92 views

Category:

Documents


2 download

DESCRIPTION

Labour Relations in Austria. Fundacion Ideas – Friedrich Ebert Stiftung February 8, 2010 – Madrid Successful Labour Relations Models in Europe: the German, Austrian and Danish Models. Labour Relations in Austria . Labour Relations (Sozialpartnerschaft) - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

1

Labour Relations in Austria

Fundacion Ideas – Friedrich Ebert Stiftung February 8, 2010 – Madrid

Successful Labour Relations Models in Europe: the German, Austrian and Danish Models

Page 2: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

2

Labour Relations in Austria

Labour Relations (Sozialpartnerschaft) Have contributed to make Austria one of the richest

countries in the world and still are an important pillar. Have contributed to cope with challenges and to

mitigate the impact of the crisis in Austria But they are challenged by globalisation, new

capitalism, and the subsequent shifts in power.

Confidence in Social Partners is (very) high.

Page 3: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

3

Austria catches up …

Austria catches up and ranks high in Wealth, Growth and Competitiveness Living standards and quality of life Employment (relatively low unemployment) Public opinion: citizens satisfied, despite

concerns Attractiveness to others: migration,

tourism, business leaders..

Page 4: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

4

… and faces (new) challenges Globalisation and new capitalism lead to

Increasing pressure on living and working conditions, On social protections systems, Public Services (privatizations), Rising inequalities…

And Austria faces (new) challenges The crisis => Jobs – jobs - jobs Rising inequalities, Education, Innovation, insufficient

R&D, Tax structure … Sustainable Growth Model

Page 5: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

5

Catching up - Real GDP p.C. multiplies x 5

Page 6: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

6

The Economy growsbut growth rates decrease

Page 7: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

7

Unemployment rates are higher since the 1980s

Page 8: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

8

Incomes grow a lot less since the 1980s

Page 9: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

9

..and the wage share decreases with a regressive impact of taxesWIFO, Guger 2009

Page 10: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

10

Austria moves towards the Service Society

Page 11: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

11

Tourism is an important sector

Page 12: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

12

Austria is competitive and exports rise(Austria ranks 14th – 17th in WCR 2003 – 2010)

Page 13: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

13

Taxes and Social Security Contributions grow…(Austria ranks 6th in EU on Social Protection Exp./GDP – SSR 2009)

Page 14: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

14

..but expenditures (still) reflect high quality public services and have a strong redistributional impact

Page 15: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

15

Life expectancy increases

Page 16: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

16

… and population grows - at varying rates(composition changes: older age-groups vs younger)

Page 17: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

17

Very few strikes in Austria – except 2003

Page 18: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

18

Austrians have varying degrees of confidence in institutions – with Chamber of Labour ranking first

Source: Market-Marktforschung, October 2008, Vertrauen ist ungleich verteilt http://www.vmoe.at/rte/upload/news_vertrauen_ist_ungleich_verteilt_.pdf

Page 19: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

19

Austrians are more satisfied, confident and optimistic than Europeans on average Eurobarometer Nr. 72, December 2009: some contrast with other polls

Comparing Austria and EU: A EUSatisfied with life 85% 78%Satisfied ec. Situation 43% 23%Confidence Government 54% 29%Confidence political parties 36% 16%Austria: 2/3 see no impact of crisis on personal

situation 20% expect improvements

Page 20: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

20

At the same time, they feel increasing pressure on their living and working conditions (stress >)

Index of Working Climate 2009 (Arbeitsklimaindex AKOÖ)

Page 21: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

21

And they are quite critical towards the EU – although the crisis has changed attitudes

Referendum 1994: 66% in favour of EU Accession

Source: ORF 2.12.2009 – Poll ÖGfE

Page 22: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

22

How did we get there? Despite: no significant resources, small country, lack of

capital, .. But: skills, small country (cf Nordics), institutional setup

and cooperation, Success Factors:

Political Consensus – learning from the past Labour Relations – negotiations replace conflict Mixed Economy: Private – Public – SGI – Welfare State Austro-Keynesianism and Reforms 1970s Technology Follower

European Integration and Enlargement (New) Challenges: globalisation and new capitalism

change logic and shift power

Page 23: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

23

Labour Relations in Austria - an important success factor

From Confrontation & Conflict to Cooperation and Consensus

Institutional setup How does it work? Key success factors The Social Partners – Recent Agreements The Chambers of Labour Challenges ahead

Page 24: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

24

Labour Relations in AustriaFrom Confrontation&Conflict to Cooperation&Consensus

Institutions created 19th / 20th century But lack of political and institutional conditions for

cooperation (class&group interests > common goals) Political and economic crises created a willingness

to cooperate and negotiate from 1945 on Guided by the principle of solving conflicts of

interest primarily at the negotiating table rather than through industrial action (strikes, lock-outs)

To ensure economic reconstruction and social equality in the postwar-period

Discussions and temporary setback 1980s – 1990s – 2003

Page 25: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

25

Institutional Setup – The System The Austrian System of Economic and Social

Partnership Works on different levels, based on different

grounds (legal, voluntary, bargaining) General level: The Austrian Social Partners Sectoral Level: Sectoral Unions and Federations

(Economic Chamber) Company Level: Works Councils and Management Aims: Strengthening Competitiveness and

stability, preserving and improving social standards and protecting the ecological bases of existence

Page 26: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

26

Institutional Setup – The Social Partners

The Austrian Social Partners The Economic Chamber (WKÖ) The Chamber of Labour (BAK) The Chamber of Agriculture (LKÖ) The Austrian Trade Union Federation

(OGB)

Page 27: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

27

How does it work – the Framework

The Institutions: Strong Participatory and Representative Democracy Strong, Independent, Representative Organizations Self-Governed (Elections) Chambers based on law

Multi-level cooperation and interaction: informal voluntary historically grown between the organizations and with the

government

Page 28: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

28

How does it work – Basic Principles

Common long-term economic and social policy aims

E.g. growth of real incomes and wealth, social security, full employment, equal distribution of wealth, price stability ...

Dialogue, co-operation and co-ordinated action more beneficial for everybody than open conflict

No denying or ignoring of conflicts ... ... but seeking solutions and balance of interest

that benefit all participants

Page 29: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

29

How does it work - Critical Success Factors

Culture and Political Will "... a special kind of discussion and

negotiation culture ... Trust, common goals, balance of interests Macro-economic perspective Compromise as a contribution to success ... the willingness to enforce compromises

internally as well as externally, and to represent different interests with due

regard to medium-term joint objectives and the overall interests of society ...„

Page 30: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

30

Institutional Set up – the Chambers Established by law, compulsary membership Representing professional, social and

cultural interests Chamber of Labour also represents the

interests of consumers, unemployed, retired workers, apprentices

Politically/financially autonomous/independent

Self-governed (elections) and largely decentralised

Page 31: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

31

Institutional Setup – The Chambers’ Responsibilities

Go far beyond mere industrial relations, lobbying and services for members

Are engaged in legislation, administration, social security system

Have the right to evaluate legislative drafts and to submit amendments

Fulfill public tasks/providing public goods (education, working conditions, labour market policy ...)

Send members in many advisory bodies / committees Informal negotiating and problem solving

competency Formal co-operation in social partnership institutions

Page 32: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

32

Institutional Setup – Commissions, Councils and Committees

Parity Commission and its successors (top representatives of government and of 4 major social partnership organizations)

With 4 Sub-Committees:1. Advisory Council for Economic and Social Affairs2. Subcommittee on International Issues3. Subcommittee on Wages4. Subcommittee on Competition and Prices

Page 33: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

33

Advisory Council for Economic and Social Affairs - Basics

Created 1963 - based on informal agreement of 4 large social partnership organizations

No legal basis, no legal personality No own budget, no building, no staff Publishes studies and reports on economic

and social policy issues ... containing joint (unanimous)

recommendations to policy makers

Page 34: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

34

Advisory Council for Economic and Social Affairs - Organisation

„Think tank" of 21 top experts of social partners' bodies

President chairs meetings and represents outside Presidency rotating on 6-month basis 2 Secretaries General: "organizational backbone" No written rules of procedure All activities are unpaid (costs shared by 4

organizations) Mandate unlimited Meetings once a month

Page 35: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

35

Advisory Council for Economic and Social Affairs - Procedures

4 Social Partners' presidents ask for opinion Council establishes working group including

external experts from all areas Working group submits draft to Council Council negotiates to formulate unanimous

wording and recommendations 4 Social Partners' Presidents sign and release Report is published - forwarded to

government and media

Page 36: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

36

Advisory Council for Economic and Social Affairs - Outcome

Profound expert knowledge of policy oriented scientists close to real life

Aims at consensual views among all social partners about basic facts, figures and contexts

Concentrates on facts, common concern and interests

Keeping political differences out of discussion

Giving unanimous recommendations

Page 37: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

37

The Social Partners - Recent Agreements (1)

Action plan for older employees (2008) Elements of a long term climate policy (2008) Safeguarding the future of the public health

insurance (2008) A modern legal basis for European statistics (2008) The future of the labour market – 2010 (2007) Agreement on combat against social dumping and

social fraud (2007) Basic concept for a policy for Lifelong Learning (2007) Agreement on minimum wages (2007)

Page 38: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

38

The Social Partners - Recent Agreements (2)

Agreement on better compatibility of job and family (2007) New law on regulation of working time flexibility (2007) Declaration: Fifty years of the Treaties of Rome (2007) Proposals for economic growth and full employment (2006) Austria 2016 – Declaration of the Social Partners (2006) Conference proceedings: The challenges facing participatory

democracy in an enlarged Europe (2006) The macro-economic policy and the Lisbon strategy of the EU

(2005)

Page 39: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

39

The Chambers of Labour – A special institution

Created in 1920 (first request in 1872) on pressure by unions and social-democrats to protect and extend social achievments

Public body based on „Law on Chambers of Labour“ Broad Mandate: „To represent and promote the social,

economic, professional and cultural interests of workers and employees“(§ 1)

Page 40: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

40

The Chambers of Labour –Tasks & Outcome

Participation in legislation and administration Research & studies (think tank) Training of works councils and union Representatives Services for members – free of charge: information,

legal advice including representation in court in labour disputes

2 mio consultations per year Education and culture: subsidies, BFI - BBRZ Outcome: 1 Euro paid = 3 Euros back (total of services,

OÖ)

Page 41: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

41

The Chambers of Labour -Membership and Resources

Membership compulsory - 3,3 mio members: Workers, apprentices, unemployed, parental leave

(ex: civil servants, agriculture); interests of retirees are represented

Financed by contributions: (0,5% of Gross Salary - max. € 19, 20)

More than 80% spent on direct services for members advice on labour and social law 72%, tax law 6,7%, consumer issues 19,8%, education 1,5%,

Staff: 2.400 (incl. Brussels Office)

Page 42: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

42

The Chambers of Labour –Organisation & Governance

1 Federal Chamber (umbrella) 9 Regional Chambers Brussels Office Self-governed public corporations Members elect a Parliament of Workers for five

years (equal, secret, direct vote), political groups

Bodies: President, Vice-Presidents (elected by plenary), Governing Body, Committees, Plenary

Staff 2.400

Page 43: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

43

The Chambers of LabourCooperation with Trade Unions (1)

The task of the Chambers of Labour is to advise the voluntary professional bodies empowered to make collective agreements and the bodies dedicated to the representation of company interests, to support them in the promotion of the social, economic, professional and cultural interests of workers and employees, and to work jointly with them. (§ 6)

Page 44: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

44

AK Legal advice, legal and consumer protection

Information acquisition and processing

Staff of experts

Membership by law

Focus of the representation of interests vis-a-vis State institutions

The Chambers of Labour Cooperation with Trade Unions (2)

Division of labour and co-

operation

ÖGB Agreements on wages and salaries, collective bargaining

Support and backup for works councils

Struggle organisation

Voluntary membership

Focus of the representation of interests vis-a-vis industry and sector

Right to go on strike

Page 45: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

45

The Chambers of Labour History and Public Opinion

Created in 1920 at the request of unions (first requ.1872) Liquidated in 1938 – re-established in 1945 Political attacks in the 1990s led to strategic overhaul – reorientation – professionalisation – more direct

services „Referendum“ 1996: 91% of members want Chamber as a legal public organisation to defend their

interests (71% participated) Polls: Chamber ranks first in citizen‘s confidence: 80% (followed by President and other institutions) 87% AK is important; 67% very important 85% (very) satisfied with services

Page 46: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

46

The Chambers of LabourSkills Development and Vocational training

BBRZ – Group, A company built by the labour movement in 1960 To help people getting back to work By: skills development, vocational rehabilitation,

education, training and placement For different target groups and markets A common task: enhance education, employment

and vocational integration Oriented upon requirements of economy and

labour-market International Activities – EU – Twinning Staff: 4.300 (OÖ)

Page 47: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

47

The Chambers of Labour Skills Development and Vocational training

BBRZ – group (cont‘d) Vocational Education for individuals and

companies Vocational Rehabilitation: Prevent work-related

problems, rehabilitate and reintegrate after accident or illness,

Prepare for and help with reintegration by special employment and training projects

Clients: Individuals, Companies, Regions (Länder), Communities, Social Security Institutions (PV, UV, KV), Bundessozialämter, Employment Agencies

Page 48: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

48

Challenges for Social Partners- in Austria and Beyond

The International Dimension Globalisation and New Capitalism change the

logic and shift power This requires new approaches to corporate,

national and global governance Cross-border, European and international

cooperation need to be strengthened Social Partners and other stakeholders need to

be involved on all levels and in all organsations – including the international level

Building on existing cooperation, institutions and procedures: Cross-Border, EU-Social Dialogue, EESC, AICESIS,

The impacts of the crisis

Page 49: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

49

How does Austria cope with the crisis

Page 50: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

50

Unemployment increases but is second-lowest in Europe (EU-method)Source Chart 6: EU employment situation and social outlook, Monthly Monitor, January 2010

Page 51: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

51

… and is lower than OECD totalUnemployment (OECD Nov. 2009)

Page 52: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

52

Austria’s fiscal balance deteriorates but less than OECDAustria Fiscal Balance (OECD Nov. 2009)

Page 53: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

53

.. And inflation is lower but positive in 2009

Austria Inflation (OECD Nov. 2009)

Page 54: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

54

How does Austria fight the crisis? Economic Stimulus Packages, Tax Reform and

Wage increases (negotiations 2008, effective 2009) maintain 41.500 jobs and dampen increase in unemployment by 0,7%-points

Labour Market Packages I-II¹ maintain 45.000 jobs

Active Labour Market Policy²: 10.000 jobs Actions for young: 3.000 jobs Total: ~ 100.000 jobs³ Expenditure for PES: 2009 + 38,5%; 2010 + 1 Short-Time work, Part-Time for older workers, Solidarity bonus, Training leave New, EPU-Förderung2 Action 4.000, Sozialökonomische Betriebe, Employment Projects3 Calculations: WIFO

eva belabed
Page 55: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

55

Unemployment and Short-Time Work in Austria

Growth of Unemployment in selected Sectors compared to last month

Short-Time Work – Persons per Month

Page 56: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

56

And what is the role of Labour Relations? Social Partners involved on all stages Continuous and ongoing cooperation among social

partners and with government To identify common ground and win-win-situations Ongoing meetings on different levels (Presidents, SGs,

experts) continuously develop common positions which allow for quick action when necessary

E.g. « Ischler Dialog » - yearly conference of Social Partners where they issue a paper on a previously chosen issue, which is then negotiated with government. October 2010: employment and migration

Page 57: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

57

And what is the role of Labour Relations? Key: the culture of permanent and ongoing

contact and cooperation which allows for continuous adjustment of positions and views

Results in common proposals such as: Social Partner Proposal « LM 2010 » in 2007

(before the crisis) Negotiations with Government resulted in: Extension of Training via PES (Public

employment Service) Youth Package (Education Guarantee for

Young – helps a lot in the crisis)

Page 58: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

58

And what is the role of Labour Relations?The Crisis Packages were negotiated in detail between the ministries

concerned and AK, ÖGB and WKÖ Bills were drafted after these negotiations In parallel Social Partners negotiated Short-time Work Government waited for results and included them in

the bill – taking into account budgetary restraints In addition: Social Partners are part of the Governing

Bodies of PES (Public Employment Service) Plus negotiations on company level: trade unions and

works councils – e.g. Short-time work needs an agreement on company level plus agreement by the sector union

The result is a compromise agreed upon and accepted by all participants

Page 59: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

59

And what is the role of Labour Relations?Short-time Work in Austria The instrument is very selective Wage compensation 90% - subsidized by PES Approval upon key elements (conditions), among others: Employer contributes substantially to costs Agreement by social partners on company level plus

sector union Employers get: flexibilisation of short-working time, PES

pays employers contribution to social security Consequences: only sound companies can afford, they

only keep key people Effect: no adverse structural effect (cf OECD) Result: 30.188 persons (~10% of unemployed) in 254

companies by 16.1.2010 (BMASK - paper)

Page 60: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

60

Labour Relations in Austria and the fight against Unemployment

Thank you!

Page 61: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

61

Fighting unemploymentThe most important measures (p.1 of 16)

Supra-Company apprenticeship-Training For young people without appr.places Including „older young“, disadvantaged and slow

learners Training capacities created: 12.300 places 2009/10 Participation Dec. 2009: ~10.000

Page 62: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

62

Fighting unemployment The most important measures (p.2 of 16)

Future for Youth Action Programme (1.4.2009) Facilitiate integration into LM and opening career-

perspectives for 19 – 24 year-olds Includes: job offer, tailored training measure or subsidised

employment Funding: € 120 mio in 2009 and 2010 Result: 83.108 young included; 138.191 were employed

Page 63: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

63

Fighting unemployment The most important measures (p.3 of 16)

Youth Foundation (Labour Foundation for young, 1.4.2009): Offer tailor made measures up to 3 years Assistance and training Previous employer contributes € 1.000 Participants receive unemployment benefits

Page 64: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

64

Fighting unemployment The most important measures (p.4 of 16)

Short-time working Scheme (1): Most important measure in terms of budget and participants Includes a fixed-term reduction in normal working time Based on an agreement between social partners (works council and

sector union) To maintain employment in times of temporary, non-seasonal

economic difficulties

Page 65: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

65

Fighting unemployment The most important measures (p.5 of 16)

Short-time working Scheme - new rules by March 2009 (LM Package 1) Greater flexibility in fixing hours of employment (between 10% and 90% of

working time) Benefits granted für 6 months, up to 18 months under certain conditions,

up to 24 months (since 1.7.2009) Skills enhancement benefits for training measures agreed by social

partners

Page 66: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

66

Fighting unemployment The most important measures (p.6 of 16)

Short-time working Scheme - new rules by July 2009 (LM Package 2) Social security contributions of employers fully refunded by Public

Employment Service from 7th month of short-time work. Maximum period for short-time work 24 months (if it begins before

31.12.2010) Result: 30.188 persons (~10% of unemployed) in 254 companies by

16.1.2010 (forecast)

Page 67: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

67

Fighting unemployment The most important measures (p.7 of 16)

Amended solidarity Bonus Scheme (1.8.2009) PSE supports empoyers who offer inhouse-Training for

employees (whose working hours are reduced) or unemployed or apprentices

Employers are thus given a cost-effective option to train their future skilled workers in-house

Page 68: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

68

Fighting unemployment The most important measures (p.8 of 16)

Subsidies to single-person businesses PSE pays 25% of gross wage for one year when

single-person businesses hire an employee for first time

Targets young unemployed and job seekers 19 - 30

Page 69: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

69

Fighting unemployment The most important measures (p.9 of 16)

„Action 4.000“ (1.9.2009) Promotes employment opportunities for LT-

unemployed in municipalities or charitable organisations

PES gives wage subsidy of 2/3 of labour costs Target: 4.800 persons by end 2010

Page 70: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

70

Fighting unemployment The most important measures (p.10 of 16)

Action +6.000 (LMP III 1.1.2010): young > 25 who cannot find a job after

graduation (due to lack of qualification and/or work experience)

PSE pays 50% of wage and non-wage labour costs for 6 months for

Starting 01 – 2010 Targets 6.000 young

Page 71: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

71

Fighting unemployment The most important measures (p.11 of 16)

Amended further training leave programme (1.8.2010) Facilitates access to training leave by reducing previous minimum employment

from 12 to 6 months And minimum training period from 3 to 2

months

Page 72: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

72

Fighting unemployment The most important measures (p.12 of 16)

Reform of part-time allowance scheme for older workers (1.9.2009) facilitates access by

Postponing increase of minimum eligibility age until 2010 Abolishing prereuisite of recruiting a replacement worker

The scheme: gives older employees the opportunity to reduce their

working time with partial wage compensation prior to retirement

Preserving the entitlements for retirement, unemployment and health insurance

Favours working time reduction over block time reduction

Page 73: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

73

Fighting unemployment The most important measures (p.13 of 16)

Revalorisation of the assessment base of unemployment benefits (1.9.2010) To compensate for inflation

Health insurance for persons not receiving unemployment assistance due to partner’s income (1.9.2009)

Duplication of places in regional skilled personnel training to 10.000 (LMP III, 2010)

Offers training for low skilled to upgrade skills (e.g. complete apprecnticeship training)

% of women will amount to 54%

Page 74: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

74

Fighting unemployment The most important measures (p.14 of 16)

Integration Initiative (LMP III, 2010) Will be expanded PES offer German language courses to 21.500 people Targets persons with little command of german,

registered as job-seekers for at least 2 months or seasonally employed

Future-oriented jobs in health care and welfare (LMP III, 2010)

Employment in these sectors rises PES offers training and skills development for 6.000

persons

Page 75: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

75

Fighting unemployment The most important measures (p.15 of 16)

More and better job orientation and educational counselling (LMP III, 09-2010)

All pupils of 7th or 8th grade shall spend one day in Vocational Information Centre

30 additional Employees in the centers To offer new training and job perspectives, esp.

girls Focus on women (LMP III, 2010)

Women: 40,8% of unemployed, but 49,5% of beneficiaries of LMP measures

Participation of women will be intensified

Page 76: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

76

Fighting unemployment The most important measures (p.16 of 16)

Electronic applications for handling unemployed benefits at the PES (LMP III, 1.7.2010)

Possibility to apply electronically for unemployment benefit

To avoid queues at PES To free capacities at PES for counselling and

placement instead of administration Increase PES staff for crisis management (LMP

III, 1.9.2010) 200 additional advisors in 2009 More staff in sept 2009 (to cope with

means.tested minimum income)

Page 77: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

77

Labour Relations in Austria and the fight against Unemployment

Labour Market – EU-accession and Enlargement Enlargement – transitional arrangements 2004 - 2011 Aims: prevent sudden increase of labour supply and

pressure on wages, gradual transition to full freedom of movement for workers, ease restrictions step by step, make Austria „fit“ for expiry of transition arrangements

Results: successful, some evidence blue collar workers from new MS: wages 20% lower.

Share of foreigners in dependent employment 8,8%(1973), 5,4%(1988), 12,7% (2007)

Special regulatons/easier access for some groups: seasonal workers, posting of workers, self-employed, special skills, nurses, newspaper deliverers.

(Chaloupek/Peyrl).

Page 78: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

78

Pension Reform 2003Government Proposals and Strikes

Pensions in Austria - Paygo still most important: 95% of Workers; 90% of Pensions - 2nd and 3rd pillar Reform in 2003: More Pillars, Increase effective Retirement Age and reduce Pensions Pensions -38% after 40 years, -27% after 45 years Short transition periods Strikes and manifestations:

Strike 6.5.2003: 500.000 Manifestation 13.5.2003: 200.000 Strike 3.6.2003: 1 mio Workers

Page 79: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

79

Pension Reform 2003Social Partners’ Proposal and Results

Pension Reform 2003 – Proposal by Social Partners

Key Results of negotiations with government : Combination of measures Long transition periods – 3 parallel systems Retirement age 65m / 60w => 65 between 2024 –

2033 Incentives for working longer Reductions max. – 10% (can be cancelled by simple

majority in Parliament) „Hacklerregelung“ (2013)

In addition: building 2nd and 3rd Pillar (subsidies)

Page 80: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

80

Pensions and the crisis Pensions and the crisis

Funded Systems hit severely: Assets: -25%, -54 trn$ Paygo Systems hit by reduction in wages and

contributions (Latvia -23%…) Pensionskassen lost -18% in 2009 And 40% over last 10 years (ORF 2.2.1010)

Pension Fund Returns in 2009 vs neg. growth Impact of Ageing 10x impact Crisis

Page 81: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

81

Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)

Page 82: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

82

Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)

Page 83: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

83

Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)

Page 84: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

84

Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)

Page 85: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

85

Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)

Export-focused Companies

Page 86: Labour Relations in Austria

FES - Ideas - Madrid 8.2.2010 Eva Belabed

86

Labour Relations in Austria and the fight against Unemployment