AK Warning About Consequences of "Interim Parking" at AMS

"Employees suffer a massive loss of income because unemployment benefits amount to only 55 percent of net income," says AK Upper Austria President Andreas Stangl. A WIFO study commissioned by the AK shows that around 14 percent of the unemployed are parked at the AMS.

AK: "Parking" at the AMS costs up to 700 million euros annually

Vienna. Stangl also sees a massive injustice in the system. "While employees who resign or seek a mutual termination have to accept a four-week suspension at the AMS, companies that 'park' remain without appropriate consequences. This practice saves personnel costs at the expense of the general public, without companies contributing to the resulting costs," is the accusation.

The parking causes annual costs of 600 to 700 million euros. These are incurred for unemployment benefits, emergency assistance, and social security contributions that the AMS has to pay for job seekers, the AK refers to the WIFO study. "Instead of employment income, those affected only receive unemployment benefits or emergency assistance, the company saves all personnel costs during this time and does not have to pay any contributions as compensation to the AMS," Stangl complains.

He particularly focuses on temporary employment agencies, where parking "obviously belongs to the business model." "Profits are privatized, the costs are borne by the general public," says the AKOÖ President.

(APA/Red)

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