Austrian industrial workers secure above-inflation pay settlements

Austrian unions earlier this month reached agreements for pay increases above the level of inflation in two key industries.

Pay in the metal and mining industry is to rise by 2.5% for the next 12 months from 1 November, taking the lowest basic rate to €1,271.78 a month. A new common grading structure for manual and non-manual workers, which has been a trade union demand since 1992, has also been introduced.

In the chemical industry, the agreed pay increase is 2.25%, also for 12 months but starting on 1 January 2005.

Both these settlements are just above Austria's current (September 2004) level of inflation, 2.1%.