Adjustment from November

Fixed pay increases: this is how much more metalworkers will get

The pay rises for the almost 200,000 employees in the metal industry have now been determined - and they are substantial.

(Bild: www.industrieblick.net)

The "Krone" now has the figures for the wage increases for metalworkers that will apply from November. This is because the fall wage round will not take place this year, as a two-year agreement was reached last year after tough negotiations. We show how much more the almost 200,000 metalworkers will now receive.

According to trade unionist Reinhold Binder, last year was "the toughest labor dispute in 60 years". In the end, employers and employees agreed on an average increase of 8.6 percent. The agreement was therefore below the underlying inflation of 9.6 percent. This year is different. As a result of the agreement, incomes will rise sharply from November 1, 2024 - even though the industry is in a difficult situation.

Employers and trade unions agreed last year that wages and salaries in the metal industry would rise by exactly one percent above rolling inflation (from October 2023 to September 2024) in November 2024. According to current estimates by Wifo expert Josef Baumgartner, the value for rolling inflation is 3.9%. This means that the incomes of the almost 200,000 employees in the metal industry will increase by 4.9 percent (see chart).

(Bild: Krone KREATIV)

Of course, there could still be moderate changes, as Statistics Austria will revise the inflation figures for September 2024 - as it did for August - once again. However, the changes will be minimal.

In any case, there will be no staggered pay increases for metalworkers this time, as was the case last year. Last year, low-income employees received an increase of ten percent, which was higher than the rolling inflation rate. However, there was a cap of 400 euros. In the lowest income group, the gross salary rose from 2236 to 2426 euros. Up to an income of 3791 euros, there was an increase of ten percent. But: from an income of 4150 euros, the cap of 400 euros took effect.

Christian Knill, chairman of the metalworking industry: "The recession in our industry has become more entrenched."

(Bild: APA/HELMUT FOHRINGER)

In addition, a competition safeguard clause was introduced for companies with particularly high personnel costs and a difficult economic situation. These companies were allowed to increase their income to a lesser extent.

This year, there will again be such a clause, which will be used by many companies. "There will be more companies this year, as the figures are even worse," says Christian Knill, Chairman of the Metalworking Industry in the Austrian Federal Economic Chamber. He estimates that around 30 percent want to apply for this clause. Last year, around one in ten companies used the clause and paid less. In general, the industry representative is in favor of continuing to rely on two-year agreements in the future, as these provide more planning security.

Up to 8500 jobs at risk
The reason for this is the recession in the industry. In the first half of the year, production fell by a further 10 percent and incoming orders plummeted even further. Automotive suppliers, for example, suffered from the crisis affecting German vehicle manufacturers. At the same time, wages have recently risen twice as much as the EU average and three times as much as in Germany, the industry complains. As a result, 2000 permanent employees and 2000 temporary workers had already lost their jobs by the summer. For the year as a whole, industry chairman Knill even fears that up to 8,500 jobs will have to be cut.