Savings package agreed

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Emco in Hallein employs around 390 people.

(Bild: MARKUS TSCHEPP)

The Hallein-based machine tool manufacturer Emco agreed an initial savings package on Thursday. Talks on further measures are to take place in January.

The workforce at machine tool manufacturer Emco in has accepted an internal short-time working model in a vote. At the same time, in a second agreement, the employees waive wage increases in the full amount of the collective agreement negotiated by the social partners.

Decline in orders and losses
This means that wages at Emco will increase by 3.3 percent instead of the 4.8 percent agreed in the collective agreement for the industry. This is made possible by a competition protection clause in the collective agreement for companies in a difficult situation. The company is struggling with a significant decline in orders from industry and business and is said to have accumulated considerable losses since the previous year. There was talk of losses in the double-digit millions within 18 months.

Internal short-time working will start in January after a two-week company vacation over the Christmas vacations. The agreement is initially valid for six months, during which - depending on the order situation - up to four Fridays a month may be lost. You will earn correspondingly less. The maximum loss of income is twelve percent, the union assures.

In addition, there are to be talks in January about a third cost-cutting measure: Emco is proposing suspension contracts to its employees, meaning employees should temporarily resign - including a reinstatement guarantee with all entitlements - the "Krone" reported. However, this has met with skepticism from the trade union and the Public Employment Service Austria (AMS): because of the reinstatement guarantee, there is no entitlement to unemployment benefits.

Emco employs around 780 people worldwide, with around 390 employees at the Hallein site.