Unions are already threatening that this is only the beginning. At the latest at the weekend there will be strikes in the retail trade if the employers do not meet the wage demands.
The great excitement surrounding the strikes on Monday is also due to the fact that the railroad unionists are among the most powerful workers’ representatives. When they call a strike at a monopoly company, many people are affected and the action is very visible.
As a result, it was quiet on Monday at Vienna Central Station, where there is usually a hustle and bustle. Almost only long-distance travelers from abroad stayed there. They either hadn’t heard about the strike or believed rumors that there were “alternative trains”. Around 8,000 connections are said to have failed on Monday. A million passengers were affected.
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In the morning and during the course of the day, the feared chaos on the streets did not materialize. As recently as Sunday, experts on news channels had warned that commuters would need “good nerves in the morning traffic” at the beginning of the week.
Unions are demanding wage increases above inflation
After that, the people apparently adjusted to the strike. An expert at the Austrian ADAC counterpart ÖAMTC said the pandemic had taught people flexibility. They are able to quickly switch to the home office if circumstances require it. In addition, there is generally less traffic on Mondays than before. The reason for this is that the employees like to use the day after the weekend to work from home.
Travelers are waiting at the main train station in Vienna. The Vida trade union started an Austria-wide warning strike on Monday because no agreement could be reached on a new collective railway agreement.
(Photo: dpa)
However, not only the widespread strike is a new experience for most Austrians, but also the high inflation. Accordingly, many managers and unions do not know how to deal with the phenomenon.
In October, inflation in Austria was 11.0 percent. This was slightly higher than the average in the euro zone (10.6 percent). The ideas of how the wage increases should turn out are still far apart in the parties. The ÖBB offered a monthly salary increase of 208 euros for the entire workforce. The unions, on the other hand, want 400 euros, which corresponds to an average increase of twelve percent. “The railways have some catching up to do when it comes to wages,” says Roman Hebenstreit from the transport and service union Vida.
The ÖBB counter that such an increase is not economically feasible. This would be over 20 percent at the lowest wage level. “We can only distribute what’s in the wallet,” said ÖBB boss Andreas Matthä. From next year, a gross minimum wage of 2,000 euros will apply to all ÖBB employees. In some cases, this was 1700 euros for employees in the areas of catering, security and cleaning.
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The lack of workers is likely to have prompted the trade unions to demand wage increases above the rate of inflation. For retail workers, the unions are demanding an 8.5 percent wage increase. Business officials argue that this is cornering industries that are already in trouble.
Austria’s retail trade is under pressure
Employers, on the other hand, offer an increase of five percent from 2023 and at the same time a one-off payment of three percent. And they do not refer to the reported inflation, but to the “rolling” rate of 6.9 percent: This is the average annual rate of inflation and, according to employers, the standard standard for wage negotiations.
In the Austrian retail sector, staff is currently particularly scarce. At the same time, the sector is under pressure. He not only has to remain competitive in terms of wages, but also sees himself confronted with the demands of suppliers in terms of energy, logistics and purchase prices.
In Austria, for example, many people probably only became aware of the problem inflation poses on Monday. In this discussion, employers refer to the state. After all, this is already cushioning part of the price increase with compensation payments, says a retail representative. The state had already supported citizens in 2022 with a climate bonus of 500 euros. These statements reflect the expectation that employees should hold back on their demands because they would already be compensated.
>> Also read: Strikes, profit warnings, plant closures: the wind power industry is slipping deeper into the crisis
It is unclear how things will continue at ÖBB. Are there more strikes? The unions didn’t stop at a short warning strike on Monday. Instead, they chose an advanced level of escalation with a 24-hour work stoppage.
So only the beer fans can stay calm for the time being. It’s the soccer World Cup, which always stimulates demand for the drink. Despite the strikes in the breweries, nobody has to go without beer. There is enough, said the brewers on Monday.
More: Deutsche Bahn boss Lutz expects additional costs of up to two billion euros in 2023