"Above inflation"

Wage round in retail starts with hefty demand

Prior to the first collective agreement negotiations, the GPA trade union commented on the demands of retail employees.(Bild: Birbaumer Christof)

The trade union wants to strengthen the purchasing power of around 430,000 retail employees. Because: "It's not salaries that are driving up prices, but other factors." Salary negotiations start next week - and the union is making a hefty demand. If no agreement is reached by the end of November, there is a threat of strikes during Advent ...

The social partners in the retail sector had prepared themselves for a quiet autumn, but now inflation has thrown a spanner in the works and the two-year agreement is being cut: the underlying inflation rate is now 3.01 percent, up to three percent would simply have been paid automatically.

The first round of negotiations for around 430,000 employees is now scheduled for November 6. The chief negotiator for the GPA union, Mario Ferrari, has a clear demand: over three percent, i.e. more than inflation. 

Private consumer spending is important for an economic upturn - and this requires a good salary trend.

Mario Ferrari, Chef-Verhandler und Bundesgeschäftsführer der Gewerkschaft GPA

Bild: Jöchl Martin

Securing purchasing power is essential
While the trade union wants to enter the ring with the demand to secure purchasing power - i.e. a wage above the inflation rate - employers repeatedly point to the inflationary effect of high wages. "But they are not the reason for the exploding prices," replies Ferrari. Salaries only account for 12 percent of total expenditure in the retail sector. And the high savings rate is also not an argument, as retail employees usually earn very little. "Most of the money therefore goes into consumption." 

Before the first collective agreement negotiations, the trade union GPA commented on the demands of retail employees.(Bild: Birbaumer Christof)

Unsurprisingly, the GPA also clearly rejects the "shopping on Sundays" demanded by part of the economy. When asked why Vienna, with 18.9 million overnight stays (in 2024), does not have a tourism zone, but Salzburg does, Ferrari responds with the question "where does it begin and end". 

Instead of recognizing the performance of employees, employers are calling for further liberalization of opening hours.

Martin Müllauer, Vorsitzender des GPA-Wirtschaftsbereichs Handel und des Betriebsrats bei Morawa

Bild: Zwefo

Union demands more time off
In addition to an above-inflation agreement, Ferrari wants more time off - specifically one to three days, staggered from five, ten and 15 years of service. For the 42.5 percent who work part-time in retail, the GPA wants overtime to be fairly compensated (50 percent bonus) and a right to top-up in the event of permanent overtime. An increase in starting salaries in exchange for a lower pay increase could be discussed.

Timetable for negotiations
The trade unionists do not expect an agreement to be reached in the first round of negotiations on November 6. This will be followed by two more November dates. If no agreement is reached, there is a threat of strikes during the Christmas period.

The Vida trade union is already negotiating for retail workers (employees in warehouses or transportation) on 3 November. Here, the demands are largely in line with the salaried employees - in addition, they want higher bonuses for night and Sunday work.