Austria's industry in the crisis: higher wages, endangered future!

Austria's industry in the crisis: higher wages, endangered future!

Laimgrubengasse 10, 1060 Wien, Österreich - Siegfried Menz, chairman of the federal division industry in the Austria (WKÖ) Chamber of Commerce (WKÖ), criticizes the production union Pro-GE and describes its statements as "wrong" and possibly "conscious twists of facts". Menz calls for an examination of the hard facts of the current situation of the Austrian industry. According to the WIFO report, the wage costs in Austria have shown the most unfavorable development in the past five years compared to the similar countries, and productivity has grown weaker compared to the main trading partners. "Producing in Austria is too expensive," emphasizes Menz. In view of the upcoming collective agreement negotiations, he warns into a respectful dialogue and a concentrated joint action to ensure competitiveness and make wages fairly.

competitiveness of German industry

A similar picture arises for Germany, where the wage costs were already 13 percent above the average of the 27 comparable countries in 2021. Despite high productivity, this cannot compensate for the high labor costs. From 1999 to 2021, industrial wage costs in Germany rose evenly by a good 4 percent, while in the euro countries the increase was even 12 percent. This development represents a serious challenge for the competitiveness of German industry, in particular in view of rapidly increasing preliminary performance costs and economic uncertainties. A report from the IW Cologne emphasizes how important it is to maintain the cost competitiveness in order to secure the industrial basis, while in the first half of 2022 compared to the previous year rose by almost 5 percent instead of just the 3 percent increase in the euro-foreign land.