Agreement on Railway Collective Agreement: Salaries Increase by Up to Three Percent

The collective agreement and actual salaries will increase by an average of 2.7 percent with the agreement on a railway collective agreement. This agreement is socially tiered: lower and middle incomes will see a stronger increase, while for higher salaries the increase is limited to 150 euros, which corresponds to 1.07 percent in the highest income bracket.

Railway Collective Agreement Brings Higher Allowances and More Vacation

In addition to the increase in wages and salaries by up to 3 percent, the negotiators also agreed in the fourth round of talks, according to the union vida, on an increase in the Sunday and holiday allowance by 8.36 percent and an adjustment of the valorisable additional payments by 3 percent. Furthermore, an entitlement to three additional vacation days from the 15th year of company affiliation was agreed upon, and from the 18th year there is an entitlement to a 6th week of vacation.

Vida: Purchasing Power Compensated with Railway Collective Agreement

The union expressed satisfaction with the agreement. "The rolling inflation of 3 percent is compensated with the conclusion, thereby sustainably maintaining purchasing power," it said in a statement. With the improvements in Sunday and holiday services, there is "recognition for work on those days when others are off," while the earlier attainment of the 6th week of vacation "mitigates the burdens of the modern working world" and "better accounts for increased productivity," said chief negotiator Gerhard Tauchner, who also pointed to rising passenger numbers.

WKÖ: Railway Collective Agreement Conclusion a "Balancing Act"

The WKÖ spoke of a "balancing act" that "maintains a balance between economic viability and responsibility for employees." "Some of our professional groups are on the shortage occupation list, and we must ensure that our salaries remain attractive during the generational change," said Thomas Scheiber, deputy chairman of the railways trade association in the WKÖ and chief negotiator on the employer side. However, from the employer's perspective, it is questionable whether a conclusion in the area of rolling inflation will be possible next year given the difficult economic situation.

The Railway Collective Agreement Settlement in Detail

Railway Workers with Higher Collective Agreement Settlement than Metalworkers

With today's agreement, the railway workers concluded significantly higher than the metalworkers, who had already reached an agreement with the employers on the first day of negotiations. Their settlements have often been referred to as trend-setting in the past, with the strongly unionized metalworkers typically concluding higher than many other sectors. This time, however, the employees of the metal industry had to make concessions. The settlement is largely below the annual inflation of the past twelve months, previously a no-go for the unions. Accordingly, employee representatives have recently been keen to point out that it is a "crisis settlement for a limited time" in the metal industry, which by no means serves as a model for further collective agreement settlements this year - as was now evident with the railways.

Trade Collective Agreement Settlement Unlikely to Hold

The trade sector is also causing tension. Although there was a 2-year settlement last year, the social partners agreed that if the inflation rate is 3 percent or more in the period from October 2024 to September 2025, the trade collective agreement settlement for 2026 will be void and must be renegotiated. A decision is expected this Friday, and observers anticipate that the agreement will need to be reopened. The trade sector employs around 450,000 employees and apprentices as well as 120,000 workers in Austria.

(APA/red)

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