FW warns: Benya formula brakes necessary reforms on the job market!

FW warns: Benya formula brakes necessary reforms on the job market!

The Freedom Economy (FW) has practiced sharp criticism of the defense of the so-called Benya formula, which is propagated by Helene Schuberth, the chief economist of the Austrian Trade Union Confederation (ÖGB). The Benya formula provides for a rigid coupling of wages to inflation and overall economic productivity, a model that the FW sees as no longer contemporary. She argues that this concept represents an obstacle to urgently needed labor market policy reforms.

Reinhard Langthaler, General Secretary of the FW, underlines that the challenges of the economy cannot be solved with centralistic automatisms. He warns that such rigid systems could endanger the economic future of Austria. In view of the current economic framework, FW is calling for more personal responsibility and flexibility in wage formation, which should be based on performance, industry and location.

criticism of the Benya formula

The criticism of the FW on the Benya formula is comprehensive. This is intended to cause a leveling effect and does not take into account the specific needs of different industries and regions. This is particularly export -oriented. Flexible operating wages, which are considered necessary for competitiveness by the FW, are rejected by the union as a "underbidden competition". Langthaler sees the Benya formula a protective shield against the necessary labor market policy developments and fears that coupling to inflation ignores the business reality in times of weak economy.

The FW therefore requires a gradual departure from the Benya automatic and demands labor market reforms that strengthen companies, facilitate investments and ultimately promote employment.

background to labor market reforms

In another context, it can be said that labor market reforms are considered a collective term for various reform concepts for reducing unemployment. These concepts often have far -reaching political and economic importance. The "Hartz Commission" under Peter Hartz developed several suggestions in Germany in 2002 that resulted in the four Hartz laws-from faster employment agencies to the merger of unemployment and social assistance.

Under the Merkel government, these reforms were continued, which led to the introduction of a general statutory minimum wage in Germany in 2015. This minimum wage of 8.50 euros per hour pursues the goal of protecting employees from dumping wages and reducing the number of employees who are dependent on social benefits despite full -time jobs. Such measures also have an impact on the discussion about wage policy and labor market reforms in Austria.