"Crisis agreement"

Metalworkers are likely to face a flash wage settlement

(Bild: stetsko - stock.adobe.com)

As expected, the negotiators in the metal industry have reached a collective agreement very quickly. A "crisis agreement" was already announced in the first wage round. In view of the high inflation, the union had started the negotiations without any specific wage demands.

"The PRO-GE and GPA trade unions therefore pushed for swift negotiations and a quick agreement in this year's collective bargaining negotiations for around 200,000 employees in the metal industry. This was achieved. On September 22, the unions were able to reach a wage and salary agreement with all six employers' associations in the metal industry," the union said in a statement.

The key points of the collective agreement

• From November 1, 2025, wages and salaries as well as apprentices' incomes will increase by two percent. Actual incomes will increase by 1.41 percent. Bonuses will increase by two percent. The bonus for night work and for the third shift will even increase by 7.54 percent.

• Two purchasing power protection bonuses totaling 1,000 euros - in two tranches of 500 euros each for employees; apprentices will receive a one-off payment of 250 euros.

• Instead of the purchasing power protection bonus, companies can also agree to convert it into up to four days off with continued payment of wages.

• From November 1, 2026, wages and salaries will increase by 2.1 percent. Actual income will increase by 1.9 percent. Apprentice wages and bonuses will increase by 2.1 percent. Expense allowances will increase by 2.1 percent. The allowance for night work and for the third shift will be increased by 7.01 percent.

Employees: "We were able to prevent zero wage rounds"
"With the crisis agreement for two years, we were able to prevent zero wage rounds and secure the purchasing power of employees. In view of the dramatic situation, we have taken responsibility together with our social partners. The most important things now are predictability and security for employees and companies," said the two chief negotiators Reinhold Binder and Mario Ferrari on Monday evening. In previous years, it was customary for the union to say on the first day what percentage wage and salary increase it was demanding.

Reinhold Binder did not name a specific demand before the negotiations - that was extremely unusual.(Bild: APA/GEORG HOCHMUTH)

Christian Knill: "We have lost more than 20 percent in production output."(Bild: APA/TOBIAS STEINMAURER)

Chamber of Commerce: "Relief for companies and employees"
The chairman of the metalworking industry, Christian Knill, said after the conclusion: "We remain well below European inflation with the sustainable part. This gives us hope that the Austrian metal industry will not deteriorate further in European competition." For WKÖ President Harald Mahrer, the moderate wage adjustment and the one-off payments "now provide urgently needed planning security and relief for companies and employees alike".

The Federation of Austrian Industries - which is not at the table during the collective bargaining negotiations - praised the quick compromise. "In a difficult situation, the negotiators have quickly reached a workable compromise that takes into account the challenges faced by companies and creates predictability," said IV Secretary General Christoph Neumayer.

The new collective agreement applies to around 200,000 employees. At the same time, the vida trade union is negotiating for around 55,000 employees at 92 companies in the rail sector.