Wage negotiations:

Union wants more money for 130,000 workers

Reinhold Binder, chairman of the PRO-GE production union, is fighting for higher wages: "A deal below rolling inflation is unthinkable!"

(Bild: APA/ALEX HALADA)

Spring is going to be hot! Not just because of the weather, but above all because of the tough wage negotiations that are about to begin. Around 130,000 employees in key sectors such as chemicals, electrical engineering, glass and paper are trembling for their pay rise. Trade union boss Reinhold Binder (PRO-GE) is already making it clear: "Compensating for inflation is the most important thing now!"

The collective bargaining round in spring covers the chemical industry (50,000 employees), electrical and electronics industry (60,000 employees), glass industry (6,500 employees), paper industry (8,000 employees) and textile industry (7,500 employees). In total, there are around 130,000 employees. Only in the textile industry was an agreement reached last year on an increase in collective and actual wages from April 1, 2025 of 0.3 percent above rolling inflation.

Agreement below inflation "unthinkable"
Negotiations will kick off in the paper industry on March 19, followed by the electrical and electronics industry on March 21 and the chemical industry on March 26. PRO-GE boss Binder is insisting on a noticeable increase in income. "An agreement below rolling inflation is inconceivable," he emphasizes. The most recent figure (March 2024 to February 2025) was 2.8 percent.

It is about the wage increase of around 130,000 employees.

(Bild: APA/ROBERT JAEGER (Symbolbild))

"Work must be worth something!"
 Binder leaves no doubt that the trade unions will negotiate hard: "Work must be worth something, and as a trade union we do not want work to be devalued in any way!" The latest demand by Kurt Maier, President of the Styrian Industrialists' Association, to freeze wages for three years is a downright crazy idea. Binder: "That's the bottom of the barrel and shows enormous short-sightedness. We will fight this resolutely. Zero wage rounds would be poison for the domestic economy and would stifle the economy for good."

The union boss is annoyed by the constant death knell for the business location: "Industry representatives have been painting the devil on the wall for months when it comes to wage rounds," counters Binder. But Binder is optimistic: "When we look back on industrial jobs in a few years' time, we will be proud of Austria as an industrial location!"

Entrepreneurs warn of competitive disadvantages
Entrepreneurs are less rosy about the situation. Domestic industry has been in crisis since 2023: sales and investments are declining. Employers argue that the substantial wage increases of the last three years - around 20 percent in total - have damaged Austria's competitiveness. But Binder counters with facts: Although there were 6587 company insolvencies in Austria in 2024, only 280 of these involved industrial companies. In addition, the production volume in Austria has risen by a whopping 68.5 percent since 2000 - a top figure in an EU comparison! In Germany, for example, there was an increase in production of only 8.3 percent.

Another argument put forward by the trade union is that unit labor costs - i.e. labor costs per quantity produced - are lower in Austria than in its most important trading partners. And wages have not simply risen, but only as a result of high inflation, emphasizes Binder. For him, one thing is clear: "The economy can be incredibly proud of employees who have a high level of loyalty to the company. This treasure should not be damaged or attacked, but should be cherished and protected."

Conclusion: A heated negotiation marathon lies ahead!
The fronts are hardened, the arguments sharpened. While employers are warning of competitive disadvantages, the trade unions are insisting on fair wages and compensation for inflation. One thing is clear: the negotiations will not be a walk in the park. But the trade union is not going to let itself be defeated!