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Factsheet for measure AT-2020-21/1399 – Updated – measures in Austria
Country | Austria , applies nationwide |
Time period | Temporary, 21 May 2020 – 31 December 2024 |
Context | COVID-19 |
Type | Bipartite collective agreements |
Category |
Employment protection and retention
– Wage flexibility |
Author | Bernadette Allinger (Forba) and Eurofound |
Measure added | 04 November 2020 (updated 21 April 2021) |
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.
The following updates to this measure have been made after it came into effect.
25 March 2021 |
On 25 March 2021, the company increased the number of necessary job cuts from 1,100 to 1,350. |
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, measure AT-2020-21/1399 (measures in Austria), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/AT-2020-21_1399.html
19 May 2022
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