Social Economy Collective Agreement: Employers Demand More Public Funds

Otherwise, closures, job losses, and the collapse of social infrastructure are threatened, warned the social economy on Friday. Therefore, they could "simply offer no more" to the unions.

Reference was made to massive budget cuts and frozen subsidies from the federal and state governments. "If only an adjustment of one percent is signaled from this side - as in Vienna, for example - we simply cannot offer more," said the chairman of the Social Economy Austria (SWÖ), Erich Fenninger, in a statement. Addressing the unions, he said: "This is not about a lack of appreciation or negotiation tactics - the money is simply not there." The goal as an industry representative is to maintain attractive conditions for employees in the future. "But for that, we finally need stable political and financial conditions," said Fenninger.

Social Economy Collective Agreement: Unions Announce Works Meetings and Demonstrations

The unions GPA and vida had rejected the employers' offer of 2.5 percent over two years the previous evening. The offer corresponds to an increase of only 1.25 percent per year. This is "insufficient and not a basis for further negotiations today," explained GPA negotiator Eva Scherz in the evening. The union had already demanded a salary increase of four percent for the coming year in the first round of negotiations in October. The unions now want to "significantly" increase the pressure through works meetings and demonstrations in public spaces.

Already next Tuesday, employees in the Vienna social organizations will take to the streets to protest against the cuts in the social sector. The AG S.O.S. (Solidarity without Austerity) called on Friday for the joint demonstration of employees and works councils from different sponsoring organizations in front of the town hall on the occasion of the municipal council meeting there.

The next round of negotiations for the 130,000 employees in the private health, social, and care sector will take place on November 27, 2025, according to the unions. The new collective agreement is to apply from January 1, 2026.

(APA/Red)

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