The high proportion of Austrian employees with collective agreements – a look at Europe.

The high proportion of Austrian employees with collective agreements – a look at Europe.

According to a report by www.derstandard.de, 98 percent of employed workers in Austria are covered by a collective agreement. This makes the country one of the leaders in Europe, with only Italy having even higher coverage at 100 percent. In contrast, coverage in Lithuania is only 8 percent, making the country at the bottom of the EU in this area.

The high level of coverage through collective agreements in Austria means that most employees benefit from fixed minimum wages and working conditions. Collective agreements are usually negotiated between employer associations and unions and apply to entire industries or sectors of the economy. They ensure that employees receive a fair salary and are protected from exploitation.

The effects of this high coverage rate are manifold. On the one hand, it leads to comparatively low income inequality in Austria. Employees receive an appropriate wage that enables them to make a living. This also helps to stabilize the labor market and increases social security.

Another effect is that the high level of coverage through collective agreements influences competition between companies. Since wage costs are fixed in many industries, companies have less leeway to compete for employees with lower wages. This could lead to higher prices for products and services as companies need to offset their costs in other ways.

Overall, it can be said that the high level of coverage through collective agreements in Austria has a positive impact on the labor market and strengthens the rights of employees. It helps reduce inequality and ensures fair working conditions. The Austrian market is characterized by a good balance between the interests of employers and employees.

Source:
According to a report by www.derstandard.de