1 / 42

Labour Relations in Austria

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

lori
Download Presentation

Labour Relations in Austria

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Labour Relations in Austria Fundacion Ideas – Friedrich Ebert Stiftung February 8, 2010 – Madrid Successful Labour Relations in Europe: the German, Austrian and Danish Models 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. 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.. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  5. Catching up - Real GDP p.C. multiplies x 5 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  6. The Economy growsbut growth rates decrease FES - Ideas - Madrid 8.2.2010 Eva Belabed

  7. Unemployment rates are higher since the 1980s FES - Ideas - Madrid 8.2.2010 Eva Belabed

  8. Incomes grow a lot less since the 1980s FES - Ideas - Madrid 8.2.2010 Eva Belabed

  9. ..and the wage share decreases Source: WIFO, Guger et al, Umverteilung durch den Staat in Österreich, 2009 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  10. Austria moves towards the Service Society FES - Ideas - Madrid 8.2.2010 Eva Belabed

  11. Tourism is an important sector FES - Ideas - Madrid 8.2.2010 Eva Belabed

  12. Austria is competitive and export share rises(Austria ranks 14th – 17th in WCR 2003 – 2010) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  13. Taxes and Social Security Contributions grow…(Austria ranks 6th in EU on Social Protection Expenditure/GDP - Source: TheSocial Situation in the European Union 2009; EC February 2010) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  14. ..but expenditures (still) reflect high quality public services and have a strong redistributional impactSource: TheSocial Situation in the European Union 2009; EC February 2010, p.285 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  15. Life expectancy increases FES - Ideas - Madrid 8.2.2010 Eva Belabed

  16. … and population grows - at varying rates(Composition changes: older age-groups vs younger) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  17. Very few strikes in Austria – except 2003 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  19. Austrians are more satisfied, confident and optimistic than Europeans on average Source: Eurobarometer Nr. 72, December 2009: some contrast with other polls Comparing Austria and EU: A EU Satisfied 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  20. At the same time, they feel increasing pressure on their living and working conditions – esp. since the crisis Index of Working Climate 2009 (Arbeitsklimaindex AKOÖ; www.arbeiterkammer.com) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  21. Labour Relations in Austria - an important success factor (Source: AK – Thomas Delapina, 2009, Thomas.DELAPINA@akwien.at and www.arbeiterkammer.at) • 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  22. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  23. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  24. 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 (ÖGB) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  25. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  26. How does it work – Basic Principles • Common long-term economic and social policy goals • 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  27. 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 ...„ FES - Ideas - Madrid 8.2.2010 Eva Belabed

  28. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  29. How does Austria cope with the crisis ? Source: AK - Josef Wallner, 2010, Josef.WALLNER@akwien.at FES - Ideas - Madrid 8.2.2010 Eva Belabed

  30. Unemployment increases but is second-lowest in Europe (EU-method)Source Chart 6: EU Employment Situation and Social Outlook, Monthly Monitor, January 2010 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  31. … and is lower than OECD total Unemployment (OECD Ec. Outlook, Nov. 2009 – Austria, Key Economic Projections) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  32. Austria’s fiscal balance deteriorates, but less than OECD total Fiscal Balance (OECD Ec. Outlook, Nov. 2009 – Austria, Key Economic Projections) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  33. .. And inflation is lower, but positive in 2009 Inflation (OECD Ec. Outlook, Nov. 2009 – Austria, Key Economic Projections) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  34. 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 + 3% 1 Short-Time work, Part-Time for older workers, Solidarity bonus, Training leave New, EPU-Förderung 2 Action 4.000, Sozialökonomische Betriebe, Employment Projects 3 Calculations: WIFO – Sources: BMASK, AK-Josef Wallner 2010,Josef.WALLNER@akwien.at FES - Ideas - Madrid 8.2.2010 Eva Belabed

  35. Unemployment and Short-Time Work in Austria Growth of Unemployment in selected Sectors compared to previous month Short-Time Work – Persons per Month (Source AK – Josef Wallner 2010, Josef.WALLNER@akwien.at) JD = Average 2009 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  36. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  37. 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) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  38. 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 FES - Ideas - Madrid 8.2.2010 Eva Belabed

  39. 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 impact (cf OECD) • Result: 30.188 persons expected (~10% of unemployed) in 254 companies by 16.1.2010 (BMASK) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  40. Why did Austria cope better with the crisis? • Austria ranks 14th - 17th in WCR • Austrian bankswerelessexposedtotoxicassets – althoughheavilyengaged in CEE • SMEs importantpartoftheeconomy • Unemployment rate low, • Inequalitieslessaccentuated (althoughincreasing) with strong redistributionalimpactofpublicexpenditure • Public budgetalmostbalanced: 0,3% deficit FES - Ideas - Madrid 8.2.2010 Eva Belabed

  41. Why did Austria cope better with the crisis? • Consumption and investmentheld up betterthan exports - due to: • Wageincreasesnegotiated 2008 – effective 2009 • Taxreform effective 1.1.2009 • Stabilizingemployment via Short-time workand othermeasures in the LM Packages • Automaticstabilisers and monetary, financial, fiscal and labour marketpolicymeasures (stimulus packages ….) FES - Ideas - Madrid 8.2.2010 Eva Belabed

  42. Labour Relations in Austria and the fight against Unemployment Thank you! FES - Ideas - Madrid 8.2.2010 Eva Belabed

More Related