Latest on municipal and state sector negotiations

Tough bargaining in both the state and municipal sectors have ended up in mediation as employers fail to get close to the unions’ key demands. In the state sector unions were already concerned about the increasing gap between the low and high paid and the prospect of pay increases negotiated mainly at local level were seen as increasing the likelihood that the lower paid would again lose out. Public sector unions support the system where industry settlements set a benchmark and note that last year state workers got 0.5% less than the private sector. However, they also argue that the public

Pay negotiations covering the Austrian public sector are set to continue with a debate on the use of statistics with key figures being current economic growth but forecasts of inflation for the coming year. The annual negotiations normal set an overall percentage pay increase that takes effect on 1 January and covers the calendar year. Inflation is currently on an upward trend and the metalworkers, in a key agreement, recently settled for a 3.1% increase for 2006. [Read more at > GDG->http://www.gdg.at/servlet/ContentServer?pagename=GDG/Page/GDG_Index&n=GDG_0.0.0.2.detail&cid=1131029075727]

Progress with collective bargaining in the public sector has been affected by the COVID-19 crisis. Around 2.1 million workers are covered by the agreement for Federal and Municipal government which was last negotiated in 2018 and runs until 31 August this year. The trade union ver.di convened its collective bargaining committee earlier this month where it postponed the decision to formally give notice on the end of the agreement which would start negotiations. There will be an opening discussion with the VKA employers' organisation on 16 June and the collective bargaining committee will