Factsheet for measure
AT-2020-21/1399
–
Updated
– measures in Austria
€300 million salary waiver to save Austrian Airlines
300€ Gehaltsverzicht zur Rettung der Austrian Airlines
Background information
Airline travel and thus airlines have been particularly hard hit by the COVID-19 pandemic and the encompassing travel restrictions. Austrian Airlines, a subsidiary of the German Lufthansa, is to receive - after lengthy negotiations - €450 million worth in government aid, in order to prevent insolvency. In addition, staff are to remain on short-time work until 2022 and staff reductions (of around 1,100) will also have to be implemented (mostly via natural fluctuations, after the short-time work period, according to the airline). Furthermore, a €300 million savings package in personnel costs was negotiated between management and works council, to be implemented until 2024.
Content of measure
This means that personnel will have to waive up to 15% of their wages, with expected savings of around €80 million per year. After short-time work has run out (expected in 2022), gradual wage decreases will be implemented:
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Ground staff (technicians, commercial staff) will waive between two and 15% of their wages between 20 March 2022 and 31 December 2023, depending on their current wages.
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Flight staff (pilots, flight attendants) will waive between 5.9% and 12.7% of their wages and pension fund contributions between 2022 and 2024.
This will help the airline save personnel costs in the range of 20% , according to Austrian Airlines, and allows the company to refrain from crisis-driven dismissals and retain as many staff members as possible.
Updates
The following updates to this measure have been made after it came into effect.
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19 October 2022
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In the collective bargaining negotiations for the AUA flying staff, it was negotiated that the salary waiver by personnel is to be gradually withdrawn by mid-2023: As of 1 January 2023, the effective income will increase by 8 percentage points (due to the reduction of the salary waiver agreed for 2023 from 12.73 to 4.73%). From 1 June 2023, the salary waiver is to be completely withdrawn (from 4.73 to 0%). In addition, there will be a 7% increase in the wage tables from 1 January 2025 compared to May 2022.
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25 March 2021
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On 25 March 2021, the company increased the number of necessary job cuts from 1,100 to 1,350.
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Use of measure
All around 7,000 employees are concerned by these wage cuts.
Contents
Target groups
Actors and funding
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Actors
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Funding
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Social partners jointly
Company / Companies
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Employees
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Agreed (outcome) incl. social partner initiative
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Agreed (outcome) incl. social partner initiative
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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Main level of involvement: Company level
Involvement
This measure was negotiated and agreed upon between management and works council at the company level.
Views and reactions
Both sides are supportive.
Sectors and occupations
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This case is sector-specific (only private sector)
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Economic area
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Sector (NACE level 2)
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H - Transportation And Storage
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H51 Air transport
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This case is not occupation-specific.
Sources
