Europe: Above-inflation pay on railways

Vida, the transport and services union has agreed a 4.1% increase over one year for around 55,000 employees in the Austrian railway industry.

The increase which comes into effect on 1 December is well above the current level of inflation, which was 1.8% in October, and also higher than the so-called “rolling inflation” figure normally used in negotiations in Austria. This is an average of inflation over the previous 12 months, and it was 3.5% when the agreement was signed.

The railways are not normally one of the first industries to settle in the annual wage round. But the metalworkers, who normally come first, signed a two-year deal in 2023. This guaranteed that the pay increase effective from 1 November 2024 would be one percentage point higher than rolling inflation, calculated at 3.8% last month.

The 200,000 metalworkers therefore received a 4.8% increase, although in companies facing financial difficulties up to 1.5% can be converted into extra free time. The new minimum monthly rate is €2,518 (£2,040).