FES - Ideas - Madrid 8.2.2010 Eva Belabed
1
Labour Relations in Austria
Fundacion Ideas – Friedrich Ebert Stiftung February 8, 2010 – Madrid
Successful Labour Relations Models in Europe: the German, Austrian and Danish Models
FES - Ideas - Madrid 8.2.2010 Eva Belabed
2
Labour Relations in Austria
Labour Relations (Sozialpartnerschaft) Have contributed to make Austria one of the richest
countries in the world and still are an important pillar. Have contributed to cope with challenges and to
mitigate the impact of the crisis in Austria But they are challenged by globalisation, new
capitalism, and the subsequent shifts in power.
Confidence in Social Partners is (very) high.
FES - Ideas - Madrid 8.2.2010 Eva Belabed
3
Austria catches up …
Austria catches up and ranks high in Wealth, Growth and Competitiveness Living standards and quality of life Employment (relatively low unemployment) Public opinion: citizens satisfied, despite
concerns Attractiveness to others: migration,
tourism, business leaders..
FES - Ideas - Madrid 8.2.2010 Eva Belabed
4
… and faces (new) challenges Globalisation and new capitalism lead to
Increasing pressure on living and working conditions, On social protections systems, Public Services (privatizations), Rising inequalities…
And Austria faces (new) challenges The crisis => Jobs – jobs - jobs Rising inequalities, Education, Innovation, insufficient
R&D, Tax structure … Sustainable Growth Model
FES - Ideas - Madrid 8.2.2010 Eva Belabed
5
Catching up - Real GDP p.C. multiplies x 5
FES - Ideas - Madrid 8.2.2010 Eva Belabed
6
The Economy growsbut growth rates decrease
FES - Ideas - Madrid 8.2.2010 Eva Belabed
7
Unemployment rates are higher since the 1980s
FES - Ideas - Madrid 8.2.2010 Eva Belabed
8
Incomes grow a lot less since the 1980s
FES - Ideas - Madrid 8.2.2010 Eva Belabed
9
..and the wage share decreases with a regressive impact of taxesWIFO, Guger 2009
FES - Ideas - Madrid 8.2.2010 Eva Belabed
10
Austria moves towards the Service Society
FES - Ideas - Madrid 8.2.2010 Eva Belabed
11
Tourism is an important sector
FES - Ideas - Madrid 8.2.2010 Eva Belabed
12
Austria is competitive and exports rise(Austria ranks 14th – 17th in WCR 2003 – 2010)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
13
Taxes and Social Security Contributions grow…(Austria ranks 6th in EU on Social Protection Exp./GDP – SSR 2009)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
14
..but expenditures (still) reflect high quality public services and have a strong redistributional impact
FES - Ideas - Madrid 8.2.2010 Eva Belabed
15
Life expectancy increases
FES - Ideas - Madrid 8.2.2010 Eva Belabed
16
… and population grows - at varying rates(composition changes: older age-groups vs younger)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
17
Very few strikes in Austria – except 2003
FES - Ideas - Madrid 8.2.2010 Eva Belabed
18
Austrians have varying degrees of confidence in institutions – with Chamber of Labour ranking first
Source: Market-Marktforschung, October 2008, Vertrauen ist ungleich verteilt http://www.vmoe.at/rte/upload/news_vertrauen_ist_ungleich_verteilt_.pdf
FES - Ideas - Madrid 8.2.2010 Eva Belabed
19
Austrians are more satisfied, confident and optimistic than Europeans on average Eurobarometer Nr. 72, December 2009: some contrast with other polls
Comparing Austria and EU: A EUSatisfied with life 85% 78%Satisfied ec. Situation 43% 23%Confidence Government 54% 29%Confidence political parties 36% 16%Austria: 2/3 see no impact of crisis on personal
situation 20% expect improvements
FES - Ideas - Madrid 8.2.2010 Eva Belabed
20
At the same time, they feel increasing pressure on their living and working conditions (stress >)
Index of Working Climate 2009 (Arbeitsklimaindex AKOÖ)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
21
And they are quite critical towards the EU – although the crisis has changed attitudes
Referendum 1994: 66% in favour of EU Accession
Source: ORF 2.12.2009 – Poll ÖGfE
FES - Ideas - Madrid 8.2.2010 Eva Belabed
22
How did we get there? Despite: no significant resources, small country, lack of
capital, .. But: skills, small country (cf Nordics), institutional setup
and cooperation, Success Factors:
Political Consensus – learning from the past Labour Relations – negotiations replace conflict Mixed Economy: Private – Public – SGI – Welfare State Austro-Keynesianism and Reforms 1970s Technology Follower
European Integration and Enlargement (New) Challenges: globalisation and new capitalism
change logic and shift power
FES - Ideas - Madrid 8.2.2010 Eva Belabed
23
Labour Relations in Austria - an important success factor
From Confrontation & Conflict to Cooperation and Consensus
Institutional setup How does it work? Key success factors The Social Partners – Recent Agreements The Chambers of Labour Challenges ahead
FES - Ideas - Madrid 8.2.2010 Eva Belabed
24
Labour Relations in AustriaFrom Confrontation&Conflict to Cooperation&Consensus
Institutions created 19th / 20th century But lack of political and institutional conditions for
cooperation (class&group interests > common goals) Political and economic crises created a willingness
to cooperate and negotiate from 1945 on Guided by the principle of solving conflicts of
interest primarily at the negotiating table rather than through industrial action (strikes, lock-outs)
To ensure economic reconstruction and social equality in the postwar-period
Discussions and temporary setback 1980s – 1990s – 2003
FES - Ideas - Madrid 8.2.2010 Eva Belabed
25
Institutional Setup – The System The Austrian System of Economic and Social
Partnership Works on different levels, based on different
grounds (legal, voluntary, bargaining) General level: The Austrian Social Partners Sectoral Level: Sectoral Unions and Federations
(Economic Chamber) Company Level: Works Councils and Management Aims: Strengthening Competitiveness and
stability, preserving and improving social standards and protecting the ecological bases of existence
FES - Ideas - Madrid 8.2.2010 Eva Belabed
26
Institutional Setup – The Social Partners
The Austrian Social Partners The Economic Chamber (WKÖ) The Chamber of Labour (BAK) The Chamber of Agriculture (LKÖ) The Austrian Trade Union Federation
(OGB)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
27
How does it work – the Framework
The Institutions: Strong Participatory and Representative Democracy Strong, Independent, Representative Organizations Self-Governed (Elections) Chambers based on law
Multi-level cooperation and interaction: informal voluntary historically grown between the organizations and with the
government
FES - Ideas - Madrid 8.2.2010 Eva Belabed
28
How does it work – Basic Principles
Common long-term economic and social policy aims
E.g. growth of real incomes and wealth, social security, full employment, equal distribution of wealth, price stability ...
Dialogue, co-operation and co-ordinated action more beneficial for everybody than open conflict
No denying or ignoring of conflicts ... ... but seeking solutions and balance of interest
that benefit all participants
FES - Ideas - Madrid 8.2.2010 Eva Belabed
29
How does it work - Critical Success Factors
Culture and Political Will "... a special kind of discussion and
negotiation culture ... Trust, common goals, balance of interests Macro-economic perspective Compromise as a contribution to success ... the willingness to enforce compromises
internally as well as externally, and to represent different interests with due
regard to medium-term joint objectives and the overall interests of society ...„
FES - Ideas - Madrid 8.2.2010 Eva Belabed
30
Institutional Set up – the Chambers Established by law, compulsary membership Representing professional, social and
cultural interests Chamber of Labour also represents the
interests of consumers, unemployed, retired workers, apprentices
Politically/financially autonomous/independent
Self-governed (elections) and largely decentralised
FES - Ideas - Madrid 8.2.2010 Eva Belabed
31
Institutional Setup – The Chambers’ Responsibilities
Go far beyond mere industrial relations, lobbying and services for members
Are engaged in legislation, administration, social security system
Have the right to evaluate legislative drafts and to submit amendments
Fulfill public tasks/providing public goods (education, working conditions, labour market policy ...)
Send members in many advisory bodies / committees Informal negotiating and problem solving
competency Formal co-operation in social partnership institutions
FES - Ideas - Madrid 8.2.2010 Eva Belabed
32
Institutional Setup – Commissions, Councils and Committees
Parity Commission and its successors (top representatives of government and of 4 major social partnership organizations)
With 4 Sub-Committees:1. Advisory Council for Economic and Social Affairs2. Subcommittee on International Issues3. Subcommittee on Wages4. Subcommittee on Competition and Prices
FES - Ideas - Madrid 8.2.2010 Eva Belabed
33
Advisory Council for Economic and Social Affairs - Basics
Created 1963 - based on informal agreement of 4 large social partnership organizations
No legal basis, no legal personality No own budget, no building, no staff Publishes studies and reports on economic
and social policy issues ... containing joint (unanimous)
recommendations to policy makers
FES - Ideas - Madrid 8.2.2010 Eva Belabed
34
Advisory Council for Economic and Social Affairs - Organisation
„Think tank" of 21 top experts of social partners' bodies
President chairs meetings and represents outside Presidency rotating on 6-month basis 2 Secretaries General: "organizational backbone" No written rules of procedure All activities are unpaid (costs shared by 4
organizations) Mandate unlimited Meetings once a month
FES - Ideas - Madrid 8.2.2010 Eva Belabed
35
Advisory Council for Economic and Social Affairs - Procedures
4 Social Partners' presidents ask for opinion Council establishes working group including
external experts from all areas Working group submits draft to Council Council negotiates to formulate unanimous
wording and recommendations 4 Social Partners' Presidents sign and release Report is published - forwarded to
government and media
FES - Ideas - Madrid 8.2.2010 Eva Belabed
36
Advisory Council for Economic and Social Affairs - Outcome
Profound expert knowledge of policy oriented scientists close to real life
Aims at consensual views among all social partners about basic facts, figures and contexts
Concentrates on facts, common concern and interests
Keeping political differences out of discussion
Giving unanimous recommendations
FES - Ideas - Madrid 8.2.2010 Eva Belabed
37
The Social Partners - Recent Agreements (1)
Action plan for older employees (2008) Elements of a long term climate policy (2008) Safeguarding the future of the public health
insurance (2008) A modern legal basis for European statistics (2008) The future of the labour market – 2010 (2007) Agreement on combat against social dumping and
social fraud (2007) Basic concept for a policy for Lifelong Learning (2007) Agreement on minimum wages (2007)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
38
The Social Partners - Recent Agreements (2)
Agreement on better compatibility of job and family (2007) New law on regulation of working time flexibility (2007) Declaration: Fifty years of the Treaties of Rome (2007) Proposals for economic growth and full employment (2006) Austria 2016 – Declaration of the Social Partners (2006) Conference proceedings: The challenges facing participatory
democracy in an enlarged Europe (2006) The macro-economic policy and the Lisbon strategy of the EU
(2005)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
39
The Chambers of Labour – A special institution
Created in 1920 (first request in 1872) on pressure by unions and social-democrats to protect and extend social achievments
Public body based on „Law on Chambers of Labour“ Broad Mandate: „To represent and promote the social,
economic, professional and cultural interests of workers and employees“(§ 1)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
40
The Chambers of Labour –Tasks & Outcome
Participation in legislation and administration Research & studies (think tank) Training of works councils and union Representatives Services for members – free of charge: information,
legal advice including representation in court in labour disputes
2 mio consultations per year Education and culture: subsidies, BFI - BBRZ Outcome: 1 Euro paid = 3 Euros back (total of services,
OÖ)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
41
The Chambers of Labour -Membership and Resources
Membership compulsory - 3,3 mio members: Workers, apprentices, unemployed, parental leave
(ex: civil servants, agriculture); interests of retirees are represented
Financed by contributions: (0,5% of Gross Salary - max. € 19, 20)
More than 80% spent on direct services for members advice on labour and social law 72%, tax law 6,7%, consumer issues 19,8%, education 1,5%,
Staff: 2.400 (incl. Brussels Office)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
42
The Chambers of Labour –Organisation & Governance
1 Federal Chamber (umbrella) 9 Regional Chambers Brussels Office Self-governed public corporations Members elect a Parliament of Workers for five
years (equal, secret, direct vote), political groups
Bodies: President, Vice-Presidents (elected by plenary), Governing Body, Committees, Plenary
Staff 2.400
FES - Ideas - Madrid 8.2.2010 Eva Belabed
43
The Chambers of LabourCooperation with Trade Unions (1)
The task of the Chambers of Labour is to advise the voluntary professional bodies empowered to make collective agreements and the bodies dedicated to the representation of company interests, to support them in the promotion of the social, economic, professional and cultural interests of workers and employees, and to work jointly with them. (§ 6)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
44
AK Legal advice, legal and consumer protection
Information acquisition and processing
Staff of experts
Membership by law
Focus of the representation of interests vis-a-vis State institutions
The Chambers of Labour Cooperation with Trade Unions (2)
Division of labour and co-
operation
ÖGB Agreements on wages and salaries, collective bargaining
Support and backup for works councils
Struggle organisation
Voluntary membership
Focus of the representation of interests vis-a-vis industry and sector
Right to go on strike
FES - Ideas - Madrid 8.2.2010 Eva Belabed
45
The Chambers of Labour History and Public Opinion
Created in 1920 at the request of unions (first requ.1872) Liquidated in 1938 – re-established in 1945 Political attacks in the 1990s led to strategic overhaul – reorientation – professionalisation – more direct
services „Referendum“ 1996: 91% of members want Chamber as a legal public organisation to defend their
interests (71% participated) Polls: Chamber ranks first in citizen‘s confidence: 80% (followed by President and other institutions) 87% AK is important; 67% very important 85% (very) satisfied with services
FES - Ideas - Madrid 8.2.2010 Eva Belabed
46
The Chambers of LabourSkills Development and Vocational training
BBRZ – Group, A company built by the labour movement in 1960 To help people getting back to work By: skills development, vocational rehabilitation,
education, training and placement For different target groups and markets A common task: enhance education, employment
and vocational integration Oriented upon requirements of economy and
labour-market International Activities – EU – Twinning Staff: 4.300 (OÖ)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
47
The Chambers of Labour Skills Development and Vocational training
BBRZ – group (cont‘d) Vocational Education for individuals and
companies Vocational Rehabilitation: Prevent work-related
problems, rehabilitate and reintegrate after accident or illness,
Prepare for and help with reintegration by special employment and training projects
Clients: Individuals, Companies, Regions (Länder), Communities, Social Security Institutions (PV, UV, KV), Bundessozialämter, Employment Agencies
FES - Ideas - Madrid 8.2.2010 Eva Belabed
48
Challenges for Social Partners- in Austria and Beyond
The International Dimension Globalisation and New Capitalism change the
logic and shift power This requires new approaches to corporate,
national and global governance Cross-border, European and international
cooperation need to be strengthened Social Partners and other stakeholders need to
be involved on all levels and in all organsations – including the international level
Building on existing cooperation, institutions and procedures: Cross-Border, EU-Social Dialogue, EESC, AICESIS,
The impacts of the crisis
FES - Ideas - Madrid 8.2.2010 Eva Belabed
49
How does Austria cope with the crisis
FES - Ideas - Madrid 8.2.2010 Eva Belabed
50
Unemployment increases but is second-lowest in Europe (EU-method)Source Chart 6: EU employment situation and social outlook, Monthly Monitor, January 2010
FES - Ideas - Madrid 8.2.2010 Eva Belabed
51
… and is lower than OECD totalUnemployment (OECD Nov. 2009)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
52
Austria’s fiscal balance deteriorates but less than OECDAustria Fiscal Balance (OECD Nov. 2009)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
53
.. And inflation is lower but positive in 2009
Austria Inflation (OECD Nov. 2009)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
54
How does Austria fight the crisis? Economic Stimulus Packages, Tax Reform and
Wage increases (negotiations 2008, effective 2009) maintain 41.500 jobs and dampen increase in unemployment by 0,7%-points
Labour Market Packages I-II¹ maintain 45.000 jobs
Active Labour Market Policy²: 10.000 jobs Actions for young: 3.000 jobs Total: ~ 100.000 jobs³ Expenditure for PES: 2009 + 38,5%; 2010 + 1 Short-Time work, Part-Time for older workers, Solidarity bonus, Training leave New, EPU-Förderung2 Action 4.000, Sozialökonomische Betriebe, Employment Projects3 Calculations: WIFO
FES - Ideas - Madrid 8.2.2010 Eva Belabed
55
Unemployment and Short-Time Work in Austria
Growth of Unemployment in selected Sectors compared to last month
Short-Time Work – Persons per Month
FES - Ideas - Madrid 8.2.2010 Eva Belabed
56
And what is the role of Labour Relations? Social Partners involved on all stages Continuous and ongoing cooperation among social
partners and with government To identify common ground and win-win-situations Ongoing meetings on different levels (Presidents, SGs,
experts) continuously develop common positions which allow for quick action when necessary
E.g. « Ischler Dialog » - yearly conference of Social Partners where they issue a paper on a previously chosen issue, which is then negotiated with government. October 2010: employment and migration
FES - Ideas - Madrid 8.2.2010 Eva Belabed
57
And what is the role of Labour Relations? Key: the culture of permanent and ongoing
contact and cooperation which allows for continuous adjustment of positions and views
Results in common proposals such as: Social Partner Proposal « LM 2010 » in 2007
(before the crisis) Negotiations with Government resulted in: Extension of Training via PES (Public
employment Service) Youth Package (Education Guarantee for
Young – helps a lot in the crisis)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
58
And what is the role of Labour Relations?The Crisis Packages were negotiated in detail between the ministries
concerned and AK, ÖGB and WKÖ Bills were drafted after these negotiations In parallel Social Partners negotiated Short-time Work Government waited for results and included them in
the bill – taking into account budgetary restraints In addition: Social Partners are part of the Governing
Bodies of PES (Public Employment Service) Plus negotiations on company level: trade unions and
works councils – e.g. Short-time work needs an agreement on company level plus agreement by the sector union
The result is a compromise agreed upon and accepted by all participants
FES - Ideas - Madrid 8.2.2010 Eva Belabed
59
And what is the role of Labour Relations?Short-time Work in Austria The instrument is very selective Wage compensation 90% - subsidized by PES Approval upon key elements (conditions), among others: Employer contributes substantially to costs Agreement by social partners on company level plus
sector union Employers get: flexibilisation of short-working time, PES
pays employers contribution to social security Consequences: only sound companies can afford, they
only keep key people Effect: no adverse structural effect (cf OECD) Result: 30.188 persons (~10% of unemployed) in 254
companies by 16.1.2010 (BMASK - paper)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
60
Labour Relations in Austria and the fight against Unemployment
Thank you!
FES - Ideas - Madrid 8.2.2010 Eva Belabed
61
Fighting unemploymentThe most important measures (p.1 of 16)
Supra-Company apprenticeship-Training For young people without appr.places Including „older young“, disadvantaged and slow
learners Training capacities created: 12.300 places 2009/10 Participation Dec. 2009: ~10.000
FES - Ideas - Madrid 8.2.2010 Eva Belabed
62
Fighting unemployment The most important measures (p.2 of 16)
Future for Youth Action Programme (1.4.2009) Facilitiate integration into LM and opening career-
perspectives for 19 – 24 year-olds Includes: job offer, tailored training measure or subsidised
employment Funding: € 120 mio in 2009 and 2010 Result: 83.108 young included; 138.191 were employed
FES - Ideas - Madrid 8.2.2010 Eva Belabed
63
Fighting unemployment The most important measures (p.3 of 16)
Youth Foundation (Labour Foundation for young, 1.4.2009): Offer tailor made measures up to 3 years Assistance and training Previous employer contributes € 1.000 Participants receive unemployment benefits
FES - Ideas - Madrid 8.2.2010 Eva Belabed
64
Fighting unemployment The most important measures (p.4 of 16)
Short-time working Scheme (1): Most important measure in terms of budget and participants Includes a fixed-term reduction in normal working time Based on an agreement between social partners (works council and
sector union) To maintain employment in times of temporary, non-seasonal
economic difficulties
FES - Ideas - Madrid 8.2.2010 Eva Belabed
65
Fighting unemployment The most important measures (p.5 of 16)
Short-time working Scheme - new rules by March 2009 (LM Package 1) Greater flexibility in fixing hours of employment (between 10% and 90% of
working time) Benefits granted für 6 months, up to 18 months under certain conditions,
up to 24 months (since 1.7.2009) Skills enhancement benefits for training measures agreed by social
partners
FES - Ideas - Madrid 8.2.2010 Eva Belabed
66
Fighting unemployment The most important measures (p.6 of 16)
Short-time working Scheme - new rules by July 2009 (LM Package 2) Social security contributions of employers fully refunded by Public
Employment Service from 7th month of short-time work. Maximum period for short-time work 24 months (if it begins before
31.12.2010) Result: 30.188 persons (~10% of unemployed) in 254 companies by
16.1.2010 (forecast)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
67
Fighting unemployment The most important measures (p.7 of 16)
Amended solidarity Bonus Scheme (1.8.2009) PSE supports empoyers who offer inhouse-Training for
employees (whose working hours are reduced) or unemployed or apprentices
Employers are thus given a cost-effective option to train their future skilled workers in-house
FES - Ideas - Madrid 8.2.2010 Eva Belabed
68
Fighting unemployment The most important measures (p.8 of 16)
Subsidies to single-person businesses PSE pays 25% of gross wage for one year when
single-person businesses hire an employee for first time
Targets young unemployed and job seekers 19 - 30
FES - Ideas - Madrid 8.2.2010 Eva Belabed
69
Fighting unemployment The most important measures (p.9 of 16)
„Action 4.000“ (1.9.2009) Promotes employment opportunities for LT-
unemployed in municipalities or charitable organisations
PES gives wage subsidy of 2/3 of labour costs Target: 4.800 persons by end 2010
FES - Ideas - Madrid 8.2.2010 Eva Belabed
70
Fighting unemployment The most important measures (p.10 of 16)
Action +6.000 (LMP III 1.1.2010): young > 25 who cannot find a job after
graduation (due to lack of qualification and/or work experience)
PSE pays 50% of wage and non-wage labour costs for 6 months for
Starting 01 – 2010 Targets 6.000 young
FES - Ideas - Madrid 8.2.2010 Eva Belabed
71
Fighting unemployment The most important measures (p.11 of 16)
Amended further training leave programme (1.8.2010) Facilitates access to training leave by reducing previous minimum employment
from 12 to 6 months And minimum training period from 3 to 2
months
FES - Ideas - Madrid 8.2.2010 Eva Belabed
72
Fighting unemployment The most important measures (p.12 of 16)
Reform of part-time allowance scheme for older workers (1.9.2009) facilitates access by
Postponing increase of minimum eligibility age until 2010 Abolishing prereuisite of recruiting a replacement worker
The scheme: gives older employees the opportunity to reduce their
working time with partial wage compensation prior to retirement
Preserving the entitlements for retirement, unemployment and health insurance
Favours working time reduction over block time reduction
FES - Ideas - Madrid 8.2.2010 Eva Belabed
73
Fighting unemployment The most important measures (p.13 of 16)
Revalorisation of the assessment base of unemployment benefits (1.9.2010) To compensate for inflation
Health insurance for persons not receiving unemployment assistance due to partner’s income (1.9.2009)
Duplication of places in regional skilled personnel training to 10.000 (LMP III, 2010)
Offers training for low skilled to upgrade skills (e.g. complete apprecnticeship training)
% of women will amount to 54%
FES - Ideas - Madrid 8.2.2010 Eva Belabed
74
Fighting unemployment The most important measures (p.14 of 16)
Integration Initiative (LMP III, 2010) Will be expanded PES offer German language courses to 21.500 people Targets persons with little command of german,
registered as job-seekers for at least 2 months or seasonally employed
Future-oriented jobs in health care and welfare (LMP III, 2010)
Employment in these sectors rises PES offers training and skills development for 6.000
persons
FES - Ideas - Madrid 8.2.2010 Eva Belabed
75
Fighting unemployment The most important measures (p.15 of 16)
More and better job orientation and educational counselling (LMP III, 09-2010)
All pupils of 7th or 8th grade shall spend one day in Vocational Information Centre
30 additional Employees in the centers To offer new training and job perspectives, esp.
girls Focus on women (LMP III, 2010)
Women: 40,8% of unemployed, but 49,5% of beneficiaries of LMP measures
Participation of women will be intensified
FES - Ideas - Madrid 8.2.2010 Eva Belabed
76
Fighting unemployment The most important measures (p.16 of 16)
Electronic applications for handling unemployed benefits at the PES (LMP III, 1.7.2010)
Possibility to apply electronically for unemployment benefit
To avoid queues at PES To free capacities at PES for counselling and
placement instead of administration Increase PES staff for crisis management (LMP
III, 1.9.2010) 200 additional advisors in 2009 More staff in sept 2009 (to cope with
means.tested minimum income)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
77
Labour Relations in Austria and the fight against Unemployment
Labour Market – EU-accession and Enlargement Enlargement – transitional arrangements 2004 - 2011 Aims: prevent sudden increase of labour supply and
pressure on wages, gradual transition to full freedom of movement for workers, ease restrictions step by step, make Austria „fit“ for expiry of transition arrangements
Results: successful, some evidence blue collar workers from new MS: wages 20% lower.
Share of foreigners in dependent employment 8,8%(1973), 5,4%(1988), 12,7% (2007)
Special regulatons/easier access for some groups: seasonal workers, posting of workers, self-employed, special skills, nurses, newspaper deliverers.
(Chaloupek/Peyrl).
FES - Ideas - Madrid 8.2.2010 Eva Belabed
78
Pension Reform 2003Government Proposals and Strikes
Pensions in Austria - Paygo still most important: 95% of Workers; 90% of Pensions - 2nd and 3rd pillar Reform in 2003: More Pillars, Increase effective Retirement Age and reduce Pensions Pensions -38% after 40 years, -27% after 45 years Short transition periods Strikes and manifestations:
Strike 6.5.2003: 500.000 Manifestation 13.5.2003: 200.000 Strike 3.6.2003: 1 mio Workers
FES - Ideas - Madrid 8.2.2010 Eva Belabed
79
Pension Reform 2003Social Partners’ Proposal and Results
Pension Reform 2003 – Proposal by Social Partners
Key Results of negotiations with government : Combination of measures Long transition periods – 3 parallel systems Retirement age 65m / 60w => 65 between 2024 –
2033 Incentives for working longer Reductions max. – 10% (can be cancelled by simple
majority in Parliament) „Hacklerregelung“ (2013)
In addition: building 2nd and 3rd Pillar (subsidies)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
80
Pensions and the crisis Pensions and the crisis
Funded Systems hit severely: Assets: -25%, -54 trn$ Paygo Systems hit by reduction in wages and
contributions (Latvia -23%…) Pensionskassen lost -18% in 2009 And 40% over last 10 years (ORF 2.2.1010)
Pension Fund Returns in 2009 vs neg. growth Impact of Ageing 10x impact Crisis
FES - Ideas - Madrid 8.2.2010 Eva Belabed
81
Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
82
Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
83
Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
84
Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)
FES - Ideas - Madrid 8.2.2010 Eva Belabed
85
Companies in Austria and the crisis(FORBA 2009: Auswirkungen der Wirtschaftskrise auf die Beschäftigten in den TOP-300 Unternehmen in Österreich)
Export-focused Companies
FES - Ideas - Madrid 8.2.2010 Eva Belabed
86
Labour Relations in Austria and the fight against Unemployment