2023-10-01 10:56:00
In the ORF “press hour” on Sunday, he emphasized that inflation had to be suppressed. The government is ready when the social partners call them. Fiscal Council President Christoph Badelt saw a “dilemma” this year.
Wages as a strong cost factor
It was clear that the workers were fighting to compensate for the loss of real wages, said Badelt in the ORF program “Hohes Haus”. A balance is positive for purchasing power and also for the economy, especially when it is weakening as it is currently. On the other hand, wages are a strong cost factor. This does not apply so much to the metal industry, but especially to the service sector, whose collective agreements – such as in retail – are subsequently negotiated. However, there is already a downturn in industry, where additional cost increases are not cheap. “You won’t find an ideal solution here,” Badelt lamented.
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Although the latest wage increases are not the cause of inflation – which has been higher in Austria for a long time and is currently above the Eurozone average – “nevertheless, a spiral is a spiral,” said Kocher in the “Press Hour”. He regretted that the government’s measures to support purchasing power had received little attention during the last negotiations. Tax-free one-off payments that the finance minister wanted to make possible were and are rejected by the union.
Another offer for possible tax-free one-off payments
And this year? “We are ready if things are needed from the government to support the wage negotiations and to act in a concerted manner. But such a request must come from the social partners,” said the politician and trained economist. This year too, the Finance Minister is prepared to talk regarding tax-free one-off payments. But that must be reflected in the outcome of the negotiations.
Cooker: price cap excluded
Basically, Kocher was “convinced that both sides (employer and employee representatives from the Chamber of Commerce and the trade union, note) know what responsibility they have in this situation.” Inflation must be reduced and purchasing power and international competitiveness must be secured. Kocher ruled out new measures such as caps on prices; the previous measures should have an effect.
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Business Economic policy dilemma: “You probably have to die a death”
A 32-hour week is not realistic for Kocher
The minister declared a rejection of a statutory reduction in working hours to 32 hours with full wage compensation. That is simply not realistic at the moment. Demands in this direction might be discussed in KV negotiations, but nothing will be done legally for the time being.
Kocher commented evasively that the budget for the employment service (AMS) is likely to decrease. In any case, he is committed to a “good budget”.
SP criticism: “This is unbelievable”
While the ÖVP Economic Association unsurprisingly saw Kocher representing the “right approaches for the business location” in a reaction, the SPÖ came out with vehement criticism of the Labor and Economics Minister. “Prices are rising and the government has been watching for months, only to now demand wage restraint given this rate of inflation, that is unbelievable,” said SPÖ social spokesman Josef Muchitsch, who is also FSG boss and top construction trade unionist. He was once once more bothered by the fact that the government continues to oppose price interventions “even though the European comparison shows that those countries that have intervened in prices have been able to reduce the inflation rate, such as Belgium with an inflation rate of 2.4 percent can be seen,” said the Social Democrat.
Industrial association calls for skilled workers strategy
In view of the massive increase in labor demand, the industrial association called for a targeted skilled worker strategy from the federal government. Kocher also admitted on television that there might be problems with a lack of workers, especially during an economic upswing.
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