Negotiation marathon: Electrical industry fights for fair wages!

Negotiation marathon: Electrical industry fights for fair wages!

Today, June 6, 2025, negotiations for the collective agreement (KV) in the electrical and electronics industry (EEI) are under high pressure. Since Friday, 2 p.m., employers and employees have been struggling to reach an agreement that is anything but certain due to the complex initial situation. As of late Friday afternoon, the negotiating parties had not yet reached a consensus. Historically, long negotiations are atypical in this industry, but the current situation is not surprising.

The current collective agreement, which should have come into force on May 1, 2023, will be put to the test. According to a study by the Association of the Electrical and Electronics Industry (FEEI), Austria will be the third most expensive country in terms of average labor costs in the EU in 2023. This plays into the hands of the social partners, as employers recently offered a wage increase of a maximum of 1.5 percent - in the face of inflation of 2.76 percent, which is nothing but a slap in the face for many employees. The demands of the PRO-GE and GPA unions, on the other hand, envisage raising wages above the inflation rate and also achieving necessary concessions in the framework law. Karl Dürtscher, chief negotiator at the GPA, highlights the pressing burdens caused by inflation and rising energy prices.

The challenges of the industry

The electrical and electronics industry is a crucial economic sector for Austria. It contributes 4.4 percent of the country's total production value and secured around 160,100 jobs in 2023, which corresponds to around 3.2 percent of total employment. With an impressive export rate of around 84 percent, companies in this sector are particularly vulnerable to declining incoming orders and the reduction of external personnel. In view of these challenges, the unions are calling for noticeable increases in wages, salaries and income for apprentices, as well as an adjustment of allowances for stressful working hours. The plan is to increase the allowance for the second shift to 1.50 euros per hour and for the third shift to 5 euros per hour.

The negotiations should urgently also address issues such as anniversary bonuses and the availability of the sixth week of vacation, a point that is important for many employees. To be entitled to the sixth week of vacation, 25 years of service with the same employer are required, provided there are no qualifying periods. In addition, the continuation of the leisure option introduced in 2016 is a hot topic during the negotiations.

An outlook on the next steps

Another date for the negotiations has already been set: the talks will continue on April 9, 2025. If no agreement is reached by the end of the negotiations, the unions have announced “combat measures” that could have a lasting impact on the working environment in the industry. However, the last word has not yet been spoken here.

If the agreement is not concluded, the old collective agreement will continue to apply, while a successful agreement would generally apply retroactively to May 1, 2025. The next few weeks could be crucial in giving the electrical and electronics industry in Austria a stable basis again. Let us remain curious to see how the negotiations develop and whether the social partners will show a good hand in reaching a fair compromise that is acceptable to everyone.

Small newspaper reports that the negotiations are taking place under high pressure, while GPA the burdens caused by the inflation crisis are discussed. Additional information about the EEI can also be found at elektrobranche.at.