Austria: 3.6% increase for 520,000 trade employees

After 4 meetings and 16 hours negotiating, the social partners in Austrian trade reached an agreement on wages.  If they had failed, the GPA-dip union threatened to strike, as the start of the holiday season is quite uncertain as no one can tell the impact the euro crisis will have on consumers’ behavior.  Employers said this agreement was “barely acceptable” while unions see it as “a major success.”  During the talks, employers proposed a 2.9% increase while unions wanted 4.2%.  In the end, 3.6% is much higher than inflation – around 2.8% in October 2010-September 2011.  This is why unions are satisfied; they also secured that part of the “Karenzzeit” (parental leave) be counted as working time.  Here are the key points of the agreement:
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ly acceptable” while unions see it as “a major success.” During the talks, employers proposed a 2.9% increase while unions wanted 4.2%. In the end, 3.6% is much higher than inflation – around 2.8% in October 2010-September 2011. This is why unions are satisfied; they also secured that part of the “Karenzzeit” (parental leave) be counted as working time. Here are the key points of the agreement:

  • Average 3.6% wage increase. On January 1, 2012, employees making less than €1,500 a month will r
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