2024-11-05 18:05:00
“We have improved our offering and the GPA has also moved somewhat. That means we have taken a step towards each other, but unfortunately I don’t see the rendezvous with reality yet. An industry collective agreement must reflect the economic situation of the industry. “I would like to see more insight from the union about what works and what doesn’t in times like these,” said Rainer Trefelik, chairman of the federal trade division in the Austrian Chamber of Commerce, after today’s second round of negotiations on collective agreements for employees and apprentices in the Austrian trade union Trade.
“The Benya formula is made up of inflation and productivity. It must therefore be taken into account that we are confronted with declining productivity in retail,” says Trefelik. And this has been the case for several years: According to the Institute for Advanced Studies (IHS), labor productivity in domestic trade fell by an average of 3.4% from 2021 to 2024. If you only look at 2023, the decline is even more dramatic at 5.6%.
“This means that the leeway for employers is very limited. In this difficult situation, we therefore rely on the expertise of economic research and its derivations in the spirit of crisis management through social partnership. When considering a 5-year period, which smooths out fluctuations from individual years, this results in a KV increase in trading of 3.1% for 2025,” calculates Trefelik.
This offer means a very challenging KV increase for domestic retailers, which is well above the current inflation rate of 1.8%. In addition to declining productivity, domestic trading companies are burdened by sharply increased costs and, at the same time, falling real sales. In addition, the forecasts promise little improvement in the short term.
Zwtl.: Conclusion with a sense of proportion in order to secure jobs in the crisis
In view of these developments, the employers’ chief negotiator considers the union’s demand “still unrealistic”, even if the GPA no longer wants a KV increase of 4.8% as in the first round of negotiations, but of 4.3%. plus requires additional days off. “The implementation of these demands would greatly overwhelm domestic trade in the current situation. “We need an approach with more sense of proportion here,” says Trefelik. Ultimately, it’s about preserving jobs. “We need an agreement that takes into account the challenging situation in the industry, because we have to ensure that the number of closures and bankruptcies in Austrian retail does not increase any further,” says Trefelik with regard to the next round of negotiations, which will take place on November 14th will take place in the WKÖ. (PWK401/DFS)
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**Interview with Rainer Trefelik, Chairman of the Federal Trade Division in the Austrian Chamber of Commerce**
**Interviewer:** Good evening, Mr. Trefelik. Thank you for joining us today to discuss the state of collective agreement negotiations within the Austrian trade sector. You mentioned that while there have been some moves toward agreement, there is still a significant disconnect. Can you elaborate on what specific areas need more alignment between the unions and employers?
**Rainer Trefelik:** Thank you for having me. Yes, we have indeed made some progress, but it still feels as though we’re not connecting with the reality faced by our industries. One of the primary concerns is that any industry collective agreement must truly reflect the economic situation we’re in. I would like to see the unions provide more insight into what strategies are effective in these challenging times.
**Interviewer:** You referenced the “Benya formula”, which intertwines inflation and productivity. Can you explain how this formula specifically impacts negotiations, especially considering the declining productivity in retail that you mentioned?
**Rainer Trefelik:** Certainly. The Benya formula serves as a benchmark for assessing wage increases by linking them to inflation rates and productivity growth. Unfortunately, we’ve been witnessing a decline in labor productivity in the retail sector for several years, with a notable 5.6% drop in 2023 alone. This decline severely constrains the financial flexibility of employers, making it difficult to meet the demands for salary increases without jeopardizing jobs or business sustainability.
**Interviewer:** How are these productivity challenges affecting the overall economic environment for retailers in Austria?
**Rainer Trefelik:** The ongoing reduction in productivity signals deeper issues within the retail sector. This could lead to higher operational costs and may also affect our ability to compete both domestically and internationally. Ultimately, if we do not address these systemic challenges, we risk not only the livelihoods of employees but also the viability of many businesses.
**Interviewer:** In light of this, what are some steps you believe both sides—unions and employers—can take to bridge the gap and move towards a more productive negotiation?
**Rainer Trefelik:** I think it starts with open communication and collaboration. We need to utilize economic research to guide our discussions and be transparent about the realities we face. Working together to understand each other’s limitations and the economic landscape is essential. Only then can we hope to craft agreements that are fair and sustainable for everyone involved.
**Interviewer:** Thank you, Mr. Trefelik, for sharing your insights with us. It’s clear that navigating the current economic challenges requires a united approach.
**Rainer Trefelik:** Thank you for having me. I hope for a productive resolution that benefits both employees and employers in the long run.
