The advocacy group criticizes that this “recall” practice cost the unemployment insurance company up to 550 million euros last year alone. Employees in construction companies, in tourism and in temporary employment agencies in particular are often “temporarily parked” at the AMS.
The Chamber of Labor calculation is based on a study by the economic research institute Wifo, which was published in 2018. It highlights companies that fire employees and hire them once more within a year. On this basis, the Chamber of Labor has now calculated what costs these people will incur for unemployment insurance in 2023. However, the 550 million is a conservative calculation, as only unemployment benefits and emergency assistance were included, not administrative costs, explained Silvia Hofbauer from the Chamber of Labor in an interview with the APA.
A good 200,000 people affected
In 2023, a good 200,000 people in Austria were affected by such unstable working conditions, Hofbauer continued. Although she admitted that the effects of seasonal unemployment would also be reflected in the figures, in many cases the time interval between dismissal and re-employment was significantly shorter. There are also enough models and subsidies for companies to cushion the effects of seasonal unemployment.
If the Chamber of Labor has its way, companies should stop their “hire and fire” practice and focus on training measures at times when the workforce is not needed. This is all the more true when, as is currently the case, there are complaints regarding a lack of work and skilled workers, says Hofbauer. And: “You shouldn’t immediately pass on every entrepreneurial risk to the general public.”
From the perspective of the Chamber of Labor, a type of cost-sharing model for companies is also worth considering. According to their idea, a company pays higher unemployment contributions if it causes more unemployment. “Instead of thinking regarding cutting unemployment insurance as part of a cut in non-wage costs, those companies that shirk their responsibility through this practice should be held accountable,” said AK President Renate Anderl.
