The background

Despite the crisis: short-time work hardly an issue in Styria

The economy is weakening, and industry in particular is in a prolonged crisis. However, short-time working as a way of helping existing staff through the difficult period is hardly ever an issue. These are the reasons.

The figures speak for themselves: in the current economic survey conducted by the Styrian Federation of Industry among 46 large companies, two thirds rate the business situation as only average. Only ten percent report a good order situation and every third company is considering reducing staff. Particularly bitter: the forecast for the business situation in the next six months is clearly turning negative, with the index at minus 12.

"The recession in Styrian industry is continuing and shows how urgently we need measures to improve competitive framework conditions for our companies," says Christoph Robinson, the new Styrian IV Managing Director. Export-oriented companies in particular are struggling: "Domestic products have simply become too expensive in international comparison," says Robinson.

There are currently no signs of a real upturn in Styria.

IV-Geschäftsführer Christoph Robinson

Bild: Sepp Pail

Sales at Andritz down
On Thursday, Andritz AG published its balance sheet for the first half of the year. Turnover at the Graz-based plant manufacturer fell by three percent due to a lack of large orders in some divisions. Nevertheless, profits remained stable.

Short-time working: only two applications approved
Short-time work was a widespread phenomenon during major crises in the recent past, especially during the coronavirus peak. In a nutshell: Employees work less, but receive almost their entire salary - the state makes a substantial contribution. In this way, staff can be retained even in lean times.

This is hardly an issue at the moment. According to the AMS, only two applications have been approved across Austria this year. There is currently discussion about the refrigerator manufacturer Liebherr, which would like to have short-time working for almost 1000 employees in East Tyrol, but is unlikely to get this approved. Economics Minister Martin Kocher has also expressed skepticism. 

In Styria, short-time working is not really an issue, according to industry sources. Background: Short-time work is primarily intended to help with short-term, externally induced crises, such as the pandemic or forces of nature. It is not an instrument for long-term economic downturns. After all, there is currently no upturn in sight.

Moreover, despite rising unemployment, there are still enough vacancies, especially for qualified specialists. In other words, anyone who is made redundant has every chance of finding a new job. 

Styrian Minister of Economic Affairs Barbara Eibinger-Miedl(Bild: Christian Jauschowetz)

"Use short-time work restrictively"
Barbara Eibinger-Miedl, Styrian Minister for Economic Affairs, echoes this sentiment: "However, as many companies are still complaining about a shortage of skilled workers and labor despite the weakening economy, the instrument of short-time work should generally be used restrictively. However, if a company is considered a central employer for a peripheral region, this should be taken into account when assessing whether short-time work should be granted." The Federation of Austrian Industries is also in favor of taking a close look at each individual case.