Metalworkers get above-inflation deal

Unions representing manual and non-manual workers in Austria's metalworking industry have signed a deal that will deliver annual increases well above current inflation levels.

The agreement provides for a 3.1% increase in both the collective rates and the amounts actually paid within companies. In August, Austria's inflation rate was 2.0%. The increase takes effect on 1 November.

Covering 180,000 employees, the metalworking agreement is generally seen as setting the pace for later negotiations in Austria. However, other employers have already indicated that they are not willing to match the increase.

In retail, where negotiations were set to start on 20 October, employers' representative Rolf Gleissner has already said that "the times are not rosy". However, Manfred Wolf of the GPA white-collar union is looking for a substantial increase. "Perhaps we will have to threaten the retail industry with upsetting its Christmas business," he said.