2024-11-26 01:53:00
Yesterday, Monday, November 25, 2024, the third and final round of negotiations on the social economy collective agreement took place between the Social Economy Austria (SWÖ) and the unions. The collective agreement negotiations were successfully concluded on Tuesday night as planned after a 16-hour negotiation marathon. The representatives of the SWÖ and the GPA and vida unions have agreed on a wage increase of 4 percent. ****
In addition, substantive improvements were agreed, such as a disproportionate increase in the large and small flexibility allowances to 50 and 25 euros each (around 68 percent), changes in administration and in the disabled area and the extension of the additional KV to the care subsidy.
“Despite the recession and the negative outlook for the economy, we have taken a big step towards our employees in order to achieve a mutually positive conclusion,” emphasizes SWÖ negotiator Yvonne Hochsteiner. This compensated for the inflation rate and also achieved an increase in real wages.
“With the renewed increase above the inflation rate, we are sending an important signal to employees,” says SWÖ chairman Erich Fenninger and makes it clear: “Everyone involved must be aware that this time it was not an easy conclusion. The next year will be very difficult economically, but at the same time it must be clear that the health and social sector must be worth something to politics.”
Flexibility should help employees
“Flexibility and consideration for the individual life situation of our employees is very important to us,” emphasizes Hochsteiner, explaining the high increase in the flexibility allowance: “Roster stability should be a basic principle, but if this is not possible due to the always tense personnel situation, then it must that will be compensated.”
Extension of the additional care subsidy KV
“This year, too, we had no real leeway in the negotiations because the legal requirements are still missing so that we can regulate this in the collective agreement,” explains Hochsteiner. It was therefore decided to extend the existing additional KV until December 31, 2025 and that politicians on both sides would work to repair the care subsidy.
The changes to the social economy collective agreement will come into force on January 1, 2025. This affects more than 110,000 employees in more than 100 different professional groups. The SWÖ includes more than 620 member organizations and is the largest voluntary umbrella organization of social and health companies in Austria. (branch)
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How do the new flexibility allowances and wage increases aim to support employees in the context of the current economic challenges?
**Interview with Yvonne Hochsteiner, SWÖ Negotiator, on Recent Collective Agreement Negotiations**
*Interviewer*: Good afternoon, Yvonne. Thank you for joining us today to discuss the recent negotiations for the social economy collective agreement. Can you describe what the negotiation process was like leading up to the agreement?
*Yvonne Hochsteiner*: Thank you for having me. It was indeed a demanding process. We had three rounds of negotiations culminating in a 16-hour marathon session to finalize the details. Both the Social Economy Austria (SWÖ) and the unions, including GPA and vida, were committed to reaching a fair and beneficial outcome for our employees. Although the economic outlook is challenging, I believe we were able to find common ground.
*Interviewer*: Speaking of challenges, can you elaborate on the economic context in which these negotiations took place and how that influenced the final agreement?
*Yvonne Hochsteiner*: Certainly. The negotiations were held amid a recession and a generally negative economic outlook. However, we recognized the pressing need to support our employees with real wage increases and allowances that reflect the current inflation rates. By agreeing on a 4 percent wage increase, alongside substantial improvements in flexibility allowances, we aimed to offset some of the financial pressures our workers are facing.
*Interviewer*: You mentioned substantial improvements in flexibility allowances as part of the agreement. Can you explain what those changes entail?
*Yvonne Hochsteiner*: Absolutely. We’ve seen a significant increase in both large and small flexibility allowances—up to €50 and €25, respectively—which represents around a 68 percent increase. These changes are designed to provide our staff with more financial security and adaptability in their roles, especially in an ever-changing work environment.
*Interviewer*: What do you hope this agreement signifies for the future of employees in the social economy sector?
*Yvonne Hochsteiner*: I hope this agreement sets a positive precedent. It demonstrates that even in tough economic times, organizations can prioritize the welfare of their employees. By adjusting wages and allowances to meet the challenges of inflation, we aim to foster a more stable and supportive work environment. This is just the beginning; we’re committed to finding more ways to enhance the working conditions for our employees.
*Interviewer*: Thank you, Yvonne, for sharing these insights. It sounds like a significant step forward for your organization and the employees in the social economy sector.
*Yvonne Hochsteiner*: Thank you for the opportunity to discuss this important outcome. I believe that by negotiating in good faith and focusing on the well-being of our workforce, we can help navigate the challenges ahead.
