Trade Collective Agreement: Bonin Identifies Concessions for Employees

"But it is also very difficult to negotiate when job losses are looming, when we notice that city centers are becoming increasingly empty, that businesses have to close. In such a situation, there is little to distribute," admitted the economist in the Ö1 "Morning Journal".

IHS Head Bonin Sees Concessions for Employees

Bonin recalled that the collective agreement, which was actually concluded for two years in 2024, had to be reopened and renegotiated due to high inflation. "One would have actually expected to go above inflation." Since it remained below the inflation, the union can "certainly not" sell the result as a success. Especially for women, who are overrepresented in trade and have a relatively low income, every euro less means a real wage loss.

In general, however, wages are also a cost factor "that is passed on to prices". "And when we complain that everything has become so expensive in supermarkets, a higher conclusion would have also kept prices high. This is now a bit of a chance that inflation overall will not be as strong," said the head of the Institute for Advanced Studies. Furthermore, the recent past has shown that conclusions above inflation have flowed more into the savings rate than into consumption.

(APA/Red)

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