EMF Collective Bargaining Committee: Effects of the global crisis on Austria and how we deal with it

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EMF Collective Bargaining Committee Effects of
the global crisis on Austria and how we deal with
it

• Presentation by Manfred Anderle
• GMTN

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Economic situation in Austria

• Austria as a small export-oriented economy could
  not escape the repercussions of the global
  crisis, even if strongly expansionary fiscal
  measures will dampen ist momentum
• Fall of GDP in the last quarter of 2008 by
  0,2
• Economic Growth 2008 real 1,8 (2007 3,1)
• Forecast for 2009 GDP will recede by -0,5
• Projected decrease of investments (2009 real
  -7) and of exports (2009by -0,5 , markedly
  below the level of 3,6 in 2008)
• Export-oriented manufacturing sector particularly
  hit regarding incoming orders, production
• (Production in 2008 increased by 3,2 2009 0,5)
• Assumption that economy should gradually recover
  at the turn of the year 2009/2010 ?(Optimistic
  Forecast 2009-2013 GDP growth by 1,3 annually)

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Unemployment rate

• Unemployment is thus rising markedly
• At the end of February 2009 301.695 unemployed
  persons (increase in23,7 compared to last year)
• Unemployment rate (national definition) 8,3
• Unemployment rate due to Eurostat-definition of
  Januar 2009 4,0
• For the first time since 2002 total active
  dependent employment is decreasing (currently
  3.350.000 decrease -13.000 compared to last
  year)

Percent of labour force excluding self employed
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Unemployment

• Specifically affected
• Individuals
• Men(30,6),
• Younger workers aged between 15-24 years
  (35,9)
• Branches
• Manufacturing sector (46,6) Hiring out of
  labour (43) Production of vehicles (108,2)
  Metal production (105,3)
• Forecast for 2008-2013 in addition 42.000 jobs
  might get lost

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Improvement of short-time work regulations

• The payment of a short-time work allowance will
  now be prolonged from currently three month at
  most (in justified cases up to one year) to 18
  months (at a first stage 6 months are granted,
  with possibility of further prolongations ), in
  exceptional cases even longer periods of
  shortened work programmes are permitted.
• Working time can now be reduced between 10 and
  90 of normal weekly working hours. Calculation
  period will be extended from four to 13 weeks
• Employers have to compensate unworked hours (at
  least equivalent to the amount of fictious
  unemployment benefit) in unionised companies
  thanks to framework worksagreement it could be
  achieved that the take-home pay of affected
  workers amounted to 90 of their last net income .

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Government measures to counter the effects on
economy and labour market

• Austrian coalition government agrees on two
  economic recovery packages (Package IMiddle
  class billion, stimulus of exports, banking
  stability package, liquidity to grant SME access
  to credits) and Package II worth 2 billion
  (investments in infrastructure,
  researchdevelopment)
• Income tax reform to the benefit of lower income
  groups (volume of 3,2 billion )- measures for
  families with children
• Labour market- Combating rising unemployment is
  given high priority
• New regulations extending short term working as a
  suitable and flexible instrument to retain
  workforce in difficult timesAdditional funds
  for the Public Employment Service to organise
  training/qualification measures for unemployed
• Labour foundations specific austrian model for
  re-integration and further training of unemployed

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Short time working in Austria

• In mid February 2009 about 27.000 workers were
  put on short time working in Austria for March a
  rise to more than 33.000 persons is projected
• Official figures assume a further rise to 40.000
  already in April 2009
• Worst affected are workers in automotive and
  metal firms in industrial Upper Austria (Voest,
  MAN, GruberKaja), Styria (Automobilcluster
  Magna) and Lower Austria (GebauerGriller
  wiresalloys) in Vienna less affected with
  exemption of GM Powertrain ( 1.500 on short time
  working)

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Revision of short-time working regulations in
Austria

• Austrian government, Public Employment Service
  (AMS) and Social partners agreed in February 2009
  on improvements for short-time working
  conditions
• Short time work is regulated in Austria at three
  different levels
• o at legislative level in the provisions of the
  Public Employment Service Act (AMSG)
• o in regulations of the AMS governing the
  implementation and granting of short-time
  allowances
• o at the level of worksagreements between works
  council and employer, determining affected
  workers, length of short-time working,
  employerscontributions and period of retention
  for workers after completion of short-time work

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Revision of short-work regulations

• Possibility to combine shortened hours with
  training of affected workers (allowances for
  training during short-time working provided by
  Public Employment Service)
• Obligation to retain affected workforce while on
  short-time work in a company/production site
• o a possible obligation to retain workforce after
  completion of shortened hoursregime only
  applies to workers on short-time work

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Revision of short-time work

• The duration of the obligation to retain
  workforce on short-time work depends on the
  duration of the short-time measure
• up to a 2 month duration of short-time work one
  month retention after completion of short-time
  work is guaranteed
• up to a 4 month duration of short-time work a two
  month retention is guaranteed
• up to a 12 month duration of short-time work the
  retention period is three months
• And if short-time work might even extend over a
  one year then continuous work for over four
  months is guaranteed

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Demands put forward by the GMTN against the
effects of the crisis

• Political analysis of the current crisis and
  demands formulated in a position paper titled
  We workers wont pay the bill!
• Policy of uncontrollable financial capitalism has
  to be abandoned
• Independent european path
• In future european point of views, traditions,
  strengths, experiences have to gain more
  importance, among them such special features as
  cooperatives

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GMTNs positionpaper

• Swift and persistent implementation of economic
  recovery packages
• Bank packages have to be linked with conditions
  to take into account workersinterests
• Funding of national aid not at workersexpense,
  but to their benefit
• Increase of negative tax to the benefit of low
  income group Redetermination of social insurance
  contributions , elimination of tax preferences,
  introduction of capital-, duty on gifts and
  estate tax

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GMTNs position paper

• Investment in research, education and
  development
• The lesson we have to learn from the current
  crisis is coordinated state intervention
• Europeanwide regulation and harmonised taxation
• Education, Training, Health system, Housing, etc.
  should not be left to the free market
• Fair trade relations with Third countries with
  respect of human and labour rights

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GMTNs position paper

• Improvement of codetermination at enterprise
  level
• Extended co-determination rights in event of
  restructuring, fixing of management salaries etc.
• Employment creation
• All young people up to the age of 18 should be
  guaranteed vocational training
• Incentives for women to find employment in
  typical male professions
• Reform of early retirement social plans in
  event of dismissals should be legally enforceable
• Support workersincome
• Increase in current unemployment benefit
• Maintenance of purchasing powerrejection of
  moderate wage policy in such difficult times!