Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
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 |
Category |
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.
Workers | Businesses | Citizens |
---|---|---|
Employees in standard employment
|
Does not apply to businesses | Does not apply to citizens |
Actors | Funding |
---|---|
Social partners jointly
Company / Companies |
Employees
|
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.
This case is sector-specific (only private sector)
Economic area | Sector (NACE level 2) |
---|---|
H - Transportation And Storage | H51 Air transport |
This case is not occupation-specific.
Citation
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.