Austria: government to introduce controls and fines to fight wage dumping

€240 million shortfall. As in Germany, where the idea of minimum wage to limit cheap competition from workers from the new Member States is spreading, Austria is trying to protect itself from the expected impact of the end of transition measures on the movement of workers within the European Union. In both countries, these measures will end on May 1, 2011. Last week, Austrian Minister for Employment and Social Affairs Rudolf Hundstorfer presented a bill “against wage and social dumping.” “With the law against wage and social dumping, we are supporting fair competition with Austrian conditions. We support free exchanges and services and we welcome foreign businesses complying with Austrian pay conditions and levels. However, we don’t want those that refuse to comply. For the first time, we’re going to introduce controls on wages with a fine system” explained the Minister, whose services counted that failure to respect minimum wage currently represents a €240M shortfall for the country. And the Ministry added that this shortfall could double after May 2011.
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Social Affairs Rudolf Hundstorfer presented a bill “against wage and social dumping.” “With the law against wage and social dumping, we are supporting fair competition with Austrian conditions. We support free exchanges and services and we welcome foreign businesses complying with Austrian pay conditions and levels. However, we don’t want those that refuse to comply. For the first time, we’re going to introduce controls on wages with a fine system” explained the Minister, whose services counte

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