Metal -technical industry in Austria: a drama for jobs and wages!

The metal -technical industry (MTI) in Austria is in an alarming state. According to a recent report by 5min.at , the industry has been in a recession for three years, which has already been reflected in declining production figures and a massive loss of jobs. Christian Knill, chairman of the specialist association, raises the alarm: "The companies can shorten the last agreed wage and salary increases by up to 1.5 percent, which is bitter in this dramatic situation for the 17,000 employees." The declining numbers have led to companies no longer able to keep all employees and already produce to other countries. A massive decline in around 5,000 jobs by the end of 2024 will be forecast if the wage columns are not reduced at a competitive level.

competition with Germany

The MTI is in international competition, especially with Germany, where wages have only increased by 9.6 percent since 2020. In Austria it is over 22.5 percent. Knill attributes this to the now too high production costs that endanger competitiveness. He urgently calls for a realignment of wage policy to counteract the emigration of jobs. The unions react sharply to these demands and indicate that the wage increases were a reaction to high inflation, but cannot be justified by the defective acting of the employer.

The German industry is also under pressure, as reported Deutschland.de . The role of the unions is crucial because they enable employees to participate in companies. In Germany there is a legally regulated employee representative, which is even released from work for larger companies. This is in contrast to the situation in the MTI, where the employees are increasingly under pressure. In addition, innovation and research in Germany are central; Over two thirds of the expenses in this area come from industry. The challenge for the MTI will be to cope with this pressure of innovation and at the same time offer their employees perspectives.