For the benefit of families

AK demand: “No cuts to the welfare state”

The head of the Chamber of Labor, Michalitsch, rejects the demands from the business community.

(Bild: AK Burgenland)

The Burgenland Chamber of Labor rejects a reduction in non-wage labor costs - President Michalitsch demands an end to the "abusive demands" from the business community.

The Chamber of Commerce recently made this demand once again. AK President Gerhard Michalitsch clearly rejects the reduction of welfare state contributions, the so-called "ancillary wage costs": "Every child knows that if employers pay less, i.e. there is less money, there are fewer benefits, specifically for families and children, for example." Only the employers would save millions again. However, working people would not have a cent left in their wallets. Michalitsch is therefore calling for an end to the "vilifying demands" from the business community.

Higher corporation tax for companies
Instead, companies should also pay a contribution to the funding in the form of higher corporation tax. After all, social security and family benefits must be safeguarded and must not be jeopardized, explains Michalitsch.

No money for rehabilitation facilities
What cuts would mean is clearly shown by the example of the reduction in accident insurance contributions, which has been implemented twice in the past five years and causes an annual loss of 125 million euros. The consequences: Accident hospitals have to be temporarily closed due to structural defects and there is hardly any money to modernize existing rehabilitation facilities, according to the AK President.

"If social insurance contributions are continually reduced, it is not only employees who are affected, but also families, children, young people and the elderly," Michalitsch points out. The contributions are also used to finance childcare allowance, family allowance and free school travel.