Promote sustainable labor market policy instead of endangering it

2023-10-09 15:15:11

arbeit plus – Social Enterprises Austria calls on politicians to create sustainable labor market policies instead of making short-sighted decisions.

Correction to OTS_20231009_OTS0052

Vienna, October 9, 2023. Negotiations on active labor market policy funding will take place until mid-October, culminating in the Finance Minister’s budget speech on October 18th. These days it will be decided how much money will be available to the AMS and, as a result, to the social enterprises that carry out the work. Around 200 social enterprises from arbeit plus support people who are disadvantaged in the labor market by providing temporary employment, advice and training to (re)enter the job.

If the AMS’s multi-year budget planning becomes reality, there would be a total budget cut of 13.8% (around 200 million).

Sabine Rehbichler, Managing Director of arbeit plus – Social Enterprise Austria: We must not allow ourselves to be blinded by the current good economy. Instead of cutting social enterprises, they should be supported in their important contribution to sustainable placement in the primary labor market. Financial planning security is also needed here in order not to endanger well-established and functioning structures that have existed for years.

First effects of the proposed cuts

The reductions according to the plan are starting to have an impact. In all likelihood, the circular economy-oriented social enterprise WAMS in Tyrol will have to close two branches that have been successfully run for decades. “The required public funding is very low compared to the economic benefit of our companies. Quick political decisions are needed to ensure that our businesses are maintained NOW and don’t go missing tomorrow!“, says Christine Regensburger, managing director of the WAMS association and board member of arbeit plus Tirol.

In Lower Austria, too, concrete effects have already been communicated by the AMS. There is a deletion of the employment projects…almost 200 transit jobs (SÖB, GBP and SÖBÜ) in the room, which means almost 1/3 of all currently existing places. Under these circumstances, three social enterprises would have to cease operations completely at the end of the year. Says Maria Nirnsee, managing director of arbeit plus Niederösterreich.

And all this despite the fact that the budget negotiations at the federal level are still ongoing, the labor shortage is worrying the economy, according to the current forecast from WIFO and IFS, a recession is imminent next year and the number of unemployed people will rise once more.

Manuela Vollmann, CEO of arbeit plus, cannot understand the procedure: Making cuts in job-promoting programs right now is a step backwards for people, for employers and for the economy as a whole.

arbeit plus therefore urgently warns once morest short-sighted cuts in funding at the expense of social enterprises and people disadvantaged in the labor market. The right time to make smart decisions for sustainable labor market policy is now!

Questions & Contact:

Mag. Elisabeth Blum
Communication & PR work plus
M: elisabeth.blum@arbeitplus.at
T: 0677 61058301

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