But the formula created by former trade unionist Anton Benya might now be changed. According to this formula, annual inflation – i.e. the average consumer price index – and a part of the overall economic productivity growth are required.
In principle, the wage formula makes sense, noted Benjamin Bittschi, economist from the Economic Research Institute (Wifo) in the Ö1 Mittagsjournal. However, Bittschi advocated a shorter period for calculating inflation, around 3 months. This would bring you closer to economic events and allow you to react to rapidly rising or falling inflation, Bittschi noted. In addition, the consumer price index is inaccurate. Ultimately, tourism would have a significant impact on the inflation rate because it has a high weight in Austria. “One might ask the question whether the industry will have to pass on the high price increases caused by the high foreign demand,” Bittschi pointed out.
Katzian ready to talk
But Helmut Hofer, economist from the Institute for Advanced Studies (IHS), also spoke out in favor of adapting the Benya formula: For example, core inflation – i.e. without food and energy – might be used, said Hofer in the Ö1 Mittagsjournal. This would prevent distorting effects from abroad. However, if you want to prevent real wage losses, you have to keep the calculation period, Hofer pointed out.
ÖGB President Wolfgang Katzian was basically willing to talk during the “press hour” on Sunday, but: “You can’t change the rules during the match,” Katzian was quoted in the Mittagsjournal. But look at what is being put on the table here.
The Chamber of Commerce (WKÖ) was pleased with the discussion in view of the tougher competition and the changed framework conditions, Ö1 said. But since there are always negotiations, the rules can only be changed during the match.
