Factsheet for case AT-2020-21/1399 – measures in Austria
|Country||Austria , applies nationwide|
|Time period||Temporary, 21 May 2020 – 31 December 2024|
|Type||Bipartite collective agreements|
Employment protection and retention
– Wage flexibility
|Author||Bernadette Allinger (Forba) and Eurofound|
|Case created||04 November 2020 (updated 06 November 2020)|
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.
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:
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.
All around 7,000 employees are concerned by these wage cuts.
Employees in standard employment
||Does not apply to businesses||Does not apply to citizens|
Social partners jointly
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||Agreed (outcome) incl. social partner initiative|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
This measure was negotiated and agreed upon between management and works council at the company level.
Both sides are supportive.
|Economic area||Sector (NACE level 2)|
|H - Transportation And Storage||H51 Air transport|
This case is not occupation-specific.
Eurofound (2020), €300 million salary waiver to save Austrian Airlines, case AT-2020-21/1399 (measures in Austria), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.