Growth struggle in the propaccy industry: wages rise despite crises!

Growth struggle in the propaccy industry: wages rise despite crises!

In Austria, a difficult trend is emerging in the Propak industry, as Georg Dieter Fischer, chairman of the Propak association, explains. The sector of the industrial manufacturers of paper and box products faces a massive decline, which is reinforced by increasing energy and material costs as well as an alarming inflation of 7.7 percent in 2023. Fischer warns that even Germany, the most important economic partner in Austria, does not come to a recession, which further exacerbates the situation. In the first half of 2023, the quantity in the PropaK industry dropped by 12.8 percent, and exports of paper, cardboard and corrugated cardboard places decreased by 10.9 percent. Overall, this development led to a decline in sales of 2.5 percent in the said period, which significantly questions the competitiveness of the industry, as wko.at reported.

wage increase despite challenges

Despite these adverse circumstances, the collective agreement negotiations, which were described as particularly challenging, were able to offer a bright spot. Propak and the GPA agreed on a wage increase of 2.9 percent, which will come into force from March 1, 2025. This adaptation reflects the annual inflation rate of 2024 and is the result of intensive negotiations. Fischer emphasizes that the industry is urgently dependent on growth in order to compensate for the negative effects of increasing labor costs and economic uncertainty. The agreement was achieved particularly with regard to the increase in inflation pressure and the danger of recession, such as kosmo.at .

The situation remains tense because Fischer points out that the positive results of the negotiations can only have a lasting effect if the economic framework conditions stabilize. Dealing with higher labor costs is a significant challenge that affects the competitiveness of the propaccy companies. A slow upswing is expected at the earliest in mid -2024, and the uncertainties regarding the development of inflation continue to make the future of the industry appear questionable.