Zucke s ä e , Sepp
A icle
Who se s wages? The legal and ins i u ional ounda ions o
collec i e ba gaining in Aus ia
Wi scha und Gesellscha (WuG)
P o ided in Coope a ion wi h:
Kamme ü A bei e und Anges ell e ü Wien
Sugges ed Ci a ion: Zucke s ä e , Sepp (2024) : Who se s wages? The legal and ins i u ional
ounda ions o collec i e ba gaining in Aus ia, Wi scha und Gesellscha (WuG), ISSN 0378-5130,
Kamme ü A bei e und Anges ell e ü Wien, Wien, Vol. 50, Iss. 4, pp. 83-116,
h ps://doi.o g/10.59288/wug504.250
This Ve sion is a ailable a :
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83
Who se s wages?
The legal and ins i u ional ounda ions
o collec i e ba gaining in Aus ia
Sepp Zucke s ä e *
ABSTRACT
This a icle p esen s an o e iew o he Aus ian sys em o collec i e ba gaining ha is
cha ac e ized by la gely au onomous wage-se ing be ween social pa ne s and high co -
e age a es. The pape ou lines he his o ical o igins and he undamen al ideas behind he
Aus ian egula o y sys em, which is designed o acili a e nego ia ions be ween ac o s in
indus ial ela ions wi hou undue in e e ence om lawmake s. A de ailed accoun is
gi en o he legal and ins i u ional amewo k o collec i e ag eemen s, including a ious
e ga omnes ules and ex ension clauses, ha p o ec he sys em om agmen a ion in o
decen alized wage egula ions. Fu u e challenges o he Aus ian wage nego ia ion sys em
a e iden i ied, such as main aining he cons i uency o collec i e ag eemen s, ensu ing
ha collec i e ag eemen s emain comp ehensi e, and a oiding he disin eg a ion o he
in o mally coo dina ed wage-se ing sys em.
KEYWORDS
Collec i e ba gaining, Aus ia, indus ial ela ions, wage-se ing
JEL-CODES
J5, K31
DOI
10.59288/wug504.250
* Sepp Zucke s ä e : A bei e kamme Wien
Con ac : sepp.zuck[email p o ec ed]
84
Zucke s ä e (2025): Who se s wages?
1. His o ical con ex
To unde s and he genesis o indus ial ela ions in Aus ia, one has o app ecia e he unique
his o ical si ua ion in pos -wa Aus ia. The Fi s Republic ounded in 1919 was he diminished
Ge man-speaking po ion o he o me Aus o-Hunga ian Mona chy, wi h a popula ion o
jus 6,760,044 (S a is ik Aus ia, 2024 VZ 1934) compa ed o he 49,408,576 (Mischle , 1912 VZ
1910) o he now disin eg a ing empi e. The es ablishmen o he Fi s Republic was no cha ac-
e ized by an o e ly op imis ic a i ude bu a he by a clima e o con on a ion be ween con-
se a i e and social democ a ic ac ions. The collapse o he Aus o-Hunga ian Empi e le he
emaining s a es wi hou hei adi ional ma ke s. Fai h in he economic iabili y o he new
Aus ian s a e was low.
In e ms o poli ical de elopmen s, howe e , he i s wo yea s o he Fi s Republic unde he
Social Democ a ic Pa y’s leade ship wi nessed a numbe o signi ican ad ancemen s. These
included he in oduc ion o uni e sal su age o women, he es ablishmen o he eigh -
hou wo kday, laws on wo ke ep esen a ion, such as he es ablishmen o wo ks councils
(Be iebs ä e
1
), a law allowing collec i e ba gaining ag eemen s (Einigungsam sgese z) and nume -
ous o he egula ions (Fel en and Mosle , 2020; Lich enbe ge , 2021). These de elopmen s had
long been impeded by he exceedingly conse a i e o ien a ion o he Habsbu g mona chy. The
new laws e en ually o med he basis o he Aus ian wage-se ing sys em.
A he ime he social democ a ic unions ( eie Gewe kscha en) had app oxima ely one million
membe s, while he conse a i e Ch is ian unions had abou 80,000. The na ionalis and he
employe -o ien ed, so-called yellow unions, eached app oxima ely 40,000 membe s each (K ula,
2002, p. 43). The communis unions, like he Communis Pa y in gene al, did no achie e a sig-
ni ican le el o in luence among wo ke s. Ins ead, hey ope a ed as pa o he le -wing oppo-
si ion wi hin he social democ a ic unions (Au eng ube , 2021).
The i s democ a ic epublic ended in a coup d’é a by he Ch is ian Democ a ic Pa y in 1934.
They es ablished a dic a o ship simila o he I alian and Spanish ascis egimes, he so-called
co po a i e s a e (S ändes aa ). The new go e nmen ou lawed labou unions and all poli ical
opposi ion pa ies. In addi ion, he S ändes aa e ec i ely abolished he democ a ic sel -go e -
nance o co po a ism and inco po a ed he Economic Chambe s (Wi scha skamme Ös e eich,
WKO) and he Chambe s o Labou (Kamme ü A bei e und Anges ell e, AK) in o he di ec
adminis a ion o he s a e
2
(A bei e kamme , 2024; Hage e al., 2016). The pu pose o sel -go -
e nance was o allow o he sel - egula ion o pa icula g oups in domains whe e di ec go -
e nance by he s a e would be deemed oo much o an in e e ence.
1 Please no e he glossa y o Ge man legal e ms in Annex 2, as he a icle e e s o speci ic Ge man e ms h oughou
he ex .
2 Fo he sake o his o ical ai ness, i is essen ial o add ess a common misconcep ion. The sys em o chambe s is no
a consequence o he S ändes aa . The Chambe o Economics was ounded in 1848 and he Chambe s o Labou we e
ounded in 1920 du ing he Fi s Republic. These ins i u ions es ablished a democ a ic sys em o ep esen a ion o
he poli ical and social in e es s o speci ic p o essional and social g oups.
85
Wi scha und Gesellscha 50 (4): 83–116
The Aus o ascis egime ended wi h he Anschluss o he Thi d Reich, which in u n esul ed in
he imp isonmen o Ch is ian Democ a s alongside he al eady imp isoned Social Democ a s.
This his o ical episode, ma ked by a iolen con on a ion and, in he end, a common opp es-
sion, has con ibu ed o he inclina ion o bo h poli ical camps o coali ion-building and com-
p omise-seeking in pos -wa Aus ia.3 Following he libe a ion o he coun y om ascis ule
by Allied o ces, ep esen a i es o he wo o me poli ical pa ies, which had been in opposi-
ion o one ano he , esol ed o es ablish a sys em o go e nance based on consensus.
In 1945, ade unions op ed o es ablish a uni ied union, he Aus ian T ade Union Fede a ion
(Ös e eichische Gewe kscha sbund, ÖGB), which encompasses all poli ical o ien a ions and sec-
o s wi hin a single la ge union (Ba is i, 1975). The p ac ical necessi ies o o ganizing unde he
pos -wa egime o ou occupa ional o ces and he objec i e o joining o ces o o ganize oge h-
e a he han in sepa a e, smalle and less powe ul g oups also con ibu ed o he uni ica ion
o he unions. The p incipal igu es in ol ed in he o ma ion o he ÖGB, Johann Böhm (Social
Democ a ), Lois Weinbe ge (Ch is ian Democ a ) and Go lieb Fiala (Communis ), a icula ed
his in en ion o collabo a e in he inaugu al issue o he union magazine De ös e eichische
A bei e und Anges ell e (Böhm, 1945; Fiala, 1945; Fische , 1945; Weinbe ge , 1945).
In he ÖGB, he a ious poli ical g oups o m ac ions, which collec i ely de e mine he poli ical
posi ions o he union. Candida es o leade ship posi ions a e nomina ed by he ac ions and
subsequen ly elec ed h ough in e nal democ a ic p ocesses. A he ou se , hese ac ions com-
p ised solely hose a ilia ed wi h he Social Democ a ic, Ch is ian Democ a ic, and Communis
unionis mo emen s. They subsequen ly expanded o encompass he na ionalis ic/libe al union-
is s o he F eedom Pa y and he g oup o he independen and he G een unionis s.
On he employe side, he cen al o ganiza ions we e econs i u ed as legal ep esen a i e bod-
ies wi h hei own democ a ic elec ions. Membe ship o hese chambe s is manda o y, and he
speci ics o his will be discussed in g ea e de ail below. The signi ican , hough p obably unin-
ended, consequence o he decision o o m one all-encompassing union, in combina ion wi h
a chambe sys em o employe s, was a uni ied and mac o-o ien ed wage nego ia ion sys em.
2. The e olu ion o Aus ian indus ial ela ions egula ion
A he oo o he Aus ian indus ial ela ions (IR) sys em is a deep dis us be ween labou
being ep esen ed mainly by he Social Democ a ic Pa y ( om 1945 Sozialis ische and om
1991 Sozialdemok a ische Pa ei Ös e eichs, SPÖ) and capi al being ep esen ed by he Ch is ian
Democ a ic Pa y, which was enamed he Aus ian People’s Pa y (Ös e eichische Volkspa ei,
3 The ole o he common opp ession su e ed by ep esen a i es o he main poli ical pa ies is s ill deba ed among
Aus ian his o ians. While i became a pa o Aus ian sel - ep esen a ion, he de ails a e less consensual (see o
example (Maie e al., 2020; Ra hkolb, 2008). B igi e Baile desc ibes he issue well: “Howe e , he expe ience o he
Na ional Socialis h ea and he common enemy will ce ainly ha e con ibu ed signi ican ly o his new willing-
ness o coope a e” (Baile , 2013, p. 7).
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Zucke s ä e (2025): Who se s wages?
ÖVP) a e he wa . This is mode a ed and modi ied by a se ious e o by bo h sides o o e come
his dis us a e he disas ous his o y o ci il wa and ascism. Du ing he pe iod o econ-
s i u ion o he Aus ian IR egula ion, he dominan poli ical pa ies we e deeply connec ed o
he social pa ne s. This allowed nego ia ions, which we e held be ween go e nmen and social
pa ne s in many o he coun ies, o ake place di ec ly be ween social pa ne s in Aus ia.
The legal s uc u e o indus ial ela ions in Aus ia as i s ands now is laid down in he Labou
Cons i u ion Law (A bei s e assungsgese z, A bVG)4. As (Ce ny, 2014) lays ou , he law was adop -
ed by he social democ a ic majo i y go e nmen (1971–1983) in 1973. I eplaced a ew sepa a e
laws, such as he law on wo ks councils, and ac s on collec i e and indi idual labou law. Each
o hese p e ious laws deal sepa a ely wi h ce ain aspec s o indus ial ela ions. The ollow-
ing sho desc ip ion o he genesis o he A bVG is based on wo o e iews by Ce ny (Ce ny,
2020, 2014).
The adop ion o he A bVG ended a p o ac ed discussion abou he legal egula ion o indus i-
al ela ions in Aus ia, which had s a ed back in he ea ly 1960s. The e o m p ocess was in e -
up ed by ha sh esis ance om employe s as well as a lack o consensus wi hin he coali ion
go e nmen o Ch is ian Democ a s and Social Democ a s (1949–1965).
The minis e o labou and social a ai s (and one o he i s emale minis e s in Aus ia), he
Ch is ian Democ a ic unionis Kä he Reho (*1910, †1983), es a ed he p ocess unde he
Ch is ian Democ a ic majo i y go e nmen o 1966–1970. Du ing hese discussions, i became
clea ha he egula ion o indus ial ela ions a na ional and b anch le el mus go hand in hand
wi h a new egula ion o indus ial ela ions a he i m le el. This would make i possible o build
a comp ehensi e sys em o he ac o s’ igh s and du ies a di e en le els. This sys em had o
ensu e ha asks no assigned o one le el a e adequa ely add essed a ano he le el. By hen, col-
lec i e ag eemen s had been egula ed in he law on collec i e ag eemen s (Kollek i e agsgese z)
plus some accompanying laws (Einigunsam sgese z, Mindes lohn a i gese z), while i m-le el IR
was go e ned by he wo ks councils ac (Be iebs ä egese z).
The nex p oposal o he new egula ion was o mula ed by he newly elec ed Social Democ a ic
majo i y go e nmen o 1971–1983 unde Chancello B uno K eisky (*1911, †1990). The p oposal
p esen ed in 1972 by he minis e o labou and social a ai s Rudol Häuse (*1909, †2000), who
was also ice p esiden o he ÖGB, was me wi h agg essi e esis ance om employe ep esen-
a i es. The e o e, he heads o social pa ne o ganiza ions, WKO p esiden Rudol Sallinge
(*1916, †1992) and ÖGB p esiden An on Benya (*1912, †2001) en e ed in o nego ia ions o each
a consensus on he new ules. Bo h we e also membe s o pa liamen : Benya o he SPÖ and
Sallinge o he ÖVP. And bo h sides had high-p o ile membe s o pa liamen in hei nego ia -
ing commi ees; o ins ance, SPÖ ep esen a i e Al ed Dallinge who la e became minis e o
labou and social a ai s, and ÖVP ep esen a i e Wal e Hause who was a high-p o ile expe
4 The law is a ailable a h ps:// is.bka.g .a /eli/bgbl/1974/22/P0/NOR11008479 and a commen ed e sion can be ound
in (Gahlei ne and Mosle , 2020, opp. 1–5).
87
Wi scha und Gesellscha 50 (4): 83–116
o he WKO. E en hough he Social Democ a ic go e nmen had, a his ime, he equi ed pa -
liamen a y majo i y o enac he law wi hou he consen o he o he pa ies, i s ill decided
o allow social pa ne s o en e in o nego ia ions wi h he aim o eaching a b oad consensus.
Finally, all h ee poli ical pa ies in pa liamen including he na ional and only pa ially lib-
e al F eedom Pa y5 (FPÖ) unanimously accep ed his b oad consensus in 1973 and he A bVG
en e ed in o o ce in 1974. While he d awbacks o such a comp omise we e c i icized by he le
and he igh , i seems o ha e con ibu ed o he long- e m s abili y o he egula ion, which was
no changed by he i s (1999–2007) o second igh -wing coali ions (2017–2019), despi e hem
ha ing had he necessa y majo i ies.
The gene al poli ical mood o he ea ly 1970s ga e la ge public suppo o ini ia i es on mo e
democ a ic in luence o wo ke s a he wo kplace oo, and a labou ma ke a ull employmen
helped he unions achie e a sa is ac o y esul .
Aus ian lawmake s g an ed he social pa ne s a high deg ee o au onomy in egula ing employ-
men ela ions, bu also demanded democ a ic esponsibili y and accoun abili y o hei espec-
i e membe s. This combina ion o au onomy and democ a ic accoun abili y allowed go e n-
men and pa liamen o ake a “hands-o ” app oach o egula ing indus ial ela ions. The s a e
con ined i sel o he p o ision o legal ins umen s o he social pa ne s o use (Mülle , 2021).
This legal amewo k a ou s mul i-employe ba gaining o e i m-le el nego ia ions, gi ing
he nego ia ing pa ne s he abili y and he incen i e o ake accoun o he mac oeconomic
and poli ical implica ions o hei decisions. In mos cases, collec i e ag eemen s (see chap e
5) ha e o co e mul iple i ms. The sys em achie es lexibili y by allowing he nego ia ing pa -
ies o delega e some ma e s o lowe le els o nego ia ion.
Cen alized collec i e ba gaining also o ces he pa ne s o ind comp omises wi hin he di e g-
ing in e es s o hei own di e se membe ship. Fo ins ance, he di e ing p io i ies o small e -
sus big i ms o o expo -o ien ed e sus in e nal ma ke -o ien ed companies ha e o be aken
in o accoun . All-encompassing o ganiza ions also ha e o ac o in he possibili y o hei pol-
icies ha ing in la iona y o de la iona y consequences, as amously poin ed ou by Calm o s
and D i ill (1988) and many o he s la e on (Laya d e al., 1991; T axle , 2002). Aus ia p o ides
qui e a good example o his as he ÖGB ollowed a wage policy along he lines o o e all p o-
duc i i y inc ease plus in la ion wi h he aim o keeping demand in line wi h g ow h and cos
inc eases in line wi h in e na ional compe i i e equi emen s (Feigl and Zucke s ä e , 2013;
Zucke s ä e , 2012).
The main law go e ning indus ial ela ions in Aus ia, he Labou Cons i u ion Law (A bVG),
is – con a y o i s sligh ly misleading name – no a cons i u ional law in he o mal sense. In
5 The Aus ian F eedom Pa y o ganized he emaining Ge man na ionalis ic igh -wing o e s. I some imes lean
owa ds a mo e libe al di ec ion bu became one o he i s and mos success ul igh -wing populis pa ies in
Eu ope unde Jö g Haide and his successo s om 1986 onwa ds (Demok a iezen um Wien, 2022).
88
Zucke s ä e (2025): Who se s wages?
Aus ia, a cons i u ional law needs a wo- hi ds majo i y o be passed in pa liamen , bu i only
akes an o dina y esolu ion o change he A bVG. None heless, he name is qui e well chosen
as he A bVG de ines he undamen al ules o Aus ian collec i e labou ela ions. In con as ,
he conduc o indus ial con lic is ha dly egula ed by law. Fo many yea s up o a ound 2010,
a s anda d in e p e a ion in Aus ian labou law was ha he e is no explici igh o s ike, and
no showing up o wo k cons i u es a b each o labou law. While his a he ex eme posi ion
is no longe suppo ed by legal expe s, he e is s ill a wide a ea o un egula ed and unde - eg-
ula ed issues in labou law. I was ia he indi ec pa h o in e na ional ag eemen s, especial-
ly he in e p e a ion o A .11 o he Eu opean Con en ion on Human Righ s (ECHR), ha he
igh o s ike became pa o he Aus ian legal amewo k. A li ely discussion is s ill ongoing
on he de ails o he igh o s ike which is beyond he scope o his pape ( o u he in o ma-
ion, see (Mosle , 2023; K ejci, 2015; Ma hold, 2015; G ube -Risak, 2024)).
The ollowing chap e begins by ouching on he ques ion o he igh o nego ia e and desc ib-
ing he ins i u ions in ol ed in mo e de ail. Subsequen ly, an o e iew is p o ided o addi ional
egula ions which a e i al in o de o s abilize he collec i e ba gaining sys em. Finally, he e
is a ocus on he poli ical and legal.6
3. The igh o nego ia e
Aus ian labou law de ines ou kinds o ins i u ions ha a e able o in e ene in collec i e
ag eemen s:7
• Volun a y associa ions o employe s o employees (Be u s e einigungen de A bei neh-
me innen und A bei nehme , Be u s e einigungen de A bei gebe innen und A bei ge-
be )
• La ge no - o -p o i associa ions, which can en e collec i e ag eemen s unde ce ain
condi ions bu only o hei own employees (kollek i e ags ähige Ve eine)
• Manda o y associa ions o employe s o employees like he Economic Chambe o he
Chambe s o Labou (kollek i e ags ähige gese zliche In e essen e e ungen)
• Public bodies (ö en liche Kö pe scha en)
In addi ion, he e a e some special laws ha also g an he igh o collec i e ba gaining o some
explici ly men ioned i ms o ins i u ions, like he (pa ially) p i a ized Aus ian Pos al Se ice,
o he public Aus ian B oadcas ing Co po a ion. Mos o hese egula ions we e adop ed in he
cou se o p i a iza ions o o me public en i ies. Especially o he pu poses o in e na ional
compa ison, i seems impo an o highligh he ac ha i ms do no in gene al ha e he igh
o nego ia e collec i e ag eemen s o hei wo ke s, as will be explained below.
6 A de ailed desc ip ion o he Aus ian sys em can also be ound in (Glassne and Ho mann, 2023; Mesch, 2015).
7 De ailed no ms a e a ailable online a h ps://www. is.bka.g .a /eli/bgbl/1974/22/P4/NOR12096972 (accessed
07.01.2025).
89
Wi scha und Gesellscha 50 (4): 83–116
3.1 Volun a y associa ions o employe s o employees
The Labou Cons i u ion Law (A bVG) gi es he igh o sign collec i e ag eemen s o olun a y
o ganiza ions o employe s and employees i hey ep esen a su icien ly ele an po ion o
he economy o which hey wish o se wages. I is no possible o p o ide a clea -cu pe cen -
age, bu ecen e dic s poin ed ou ha o ganizing less han 8.5% o po en ial job holde s is de i-
ni ely oo li le8 (G illbe ge , 2018, p. 483). Howe e , his ques ion is legally oo complex o be
dis illed in o a single pe cen age sha e. Fo mally, olun a y o ganiza ions had o apply o he
igh o nego ia e a he Bundeseinigungsam , and a lis o all o ganiza ions holding he igh o
nego ia e can be ound in he online appendix.
To ob ain he igh o nego ia e, a olun a y o ganiza ion has o
• explici ly s a e he aim o egula e employmen condi ions in i s s a u es,
• co e a su icien ange o he employe s o employees in he egional and p o essional
sphe e o which i wan s he igh o nego ia e,
• ha e su icien economic ele ance based on i s sha e o employees and ele ance in
he b anch o ac i i y, and
• be independen om he o he side o he collec i e ag eemen .
I hese condi ions a e me , he o ganiza ion has he igh o become kollek i e ags ähig, which
is he legal e m o being pe mi ed o sign collec i e ag eemen s on behal o one’s membe s.
3.2 La ge (non-comme cial) associa ions
Associa ions can apply o he igh o nego ia e on behal o employe s in collec i e ag eemen s
co e ing hei own employees only. The e o e, hey mus no be membe s o an employe s’ asso-
cia ion. They ha e o be o ganized as a non p o i o ganiza ion (Ve ein ) acco ding o he s ipula-
ion o he Ve einsgese z which, among o he hings, means hey ha e o be non-p o i o ganiza ions.
Cu en ly only ou a he small associa ions9 ha e his pa icula igh . Ex ension mechanisms,
which will be add essed la e , canno be applied o ag eemen s signed by such associa ions.
3.3 Manda o y associa ions o employe s o employees
Aus ia has a a he unique sys em o p o essional sel -go e nance. Mos employed people, he
sel -employed as well as employees, a e membe s o such a sel -go e ning ins i u ion. These
8 The au ho also highligh s an ea lie e dic by he VwGH (Sup eme Adminis a i e Cou ) ha e en 23% o po en-
ial membe s migh be oo li le, which he au ho deems o e ly ambi ious.
9 Ve ein Wiene Symphonike ; Wiene Tie schu z e ein; Neus a – Bewäh ungshil e, Kon lik egelung, Soziale
A bei ; Niede ös e eichisches Hil swe k.
90
Zucke s ä e (2025): Who se s wages?
ins i u ions ha e manda o y membe ship wi hin hei espec i e cons i uency, de ined by
labou ma ke , p o essional o class s a us. Such ins i u ions a e qui e common in many coun-
ies o libe al p o essions, like lawye s, medical doc o s and cha e ed accoun an s. E en
ins i u ions like he Economic Cambe s usually called chambe s o comme ce o chambe s o
ade a e equen ly seen in o he coun ies. The a he unique ea u e in Aus ia, howe e ,
a e he Chambe s o Labou and he Chambe o Ag icul u e. These ins i u ions ac no only as
sel -go e ning in e es g oups bu also as ep esen a i es o employe s (o employees) in col-
lec i e ag eemen s, which is unusual in o he coun ies.10
Special laws cons i u e hese o ganiza ions as “chambe s” wi h manda o y membe ship. In
e u n, he membe s ha e he igh o democ a ically o e o he leade ship o hei chambe .
Apa om nego ia ing collec i e ag eemen s, chambe s also ep esen he in e es s o hei
membe s in o he ields o poli ics, like p o essional egula ions, compe i ion policy, social secu-
i y issues and many o he s.11
The link be ween manda o y membe ship and democ a ic sel -go e nance is a co e elemen o
he Aus ian sys em o ep esen a ion and impo an o secu ing he p inciple o eedom o
associa ion (Ko inek, 1991; Mülle , 2020). In addi ion, he e is p ecedence o ag eemen s signed
by olun a y o ganisa ions o e hose concluded by manda o y ins i u ions i hey migh be in
con lic o he same employmen ela ionship. The e o e, manda o y o ganiza ions a e no
able o p e en olun a y ones om o ganizing.
A no able implica ion o he sel -go e nance p inciple is he ac ha ci izenship is no equi ed
o o e in in e nal elec ions. The chambe s a e he e o e he only ins i u ions o wide go e n-
men whe e non-ci izens ha e he democ a ic igh o o e o hei poli ical leade ship. Non-
ci izens make up almos a qua e (24%) o employees and sel -employed pe sons in Aus ia
(‘A bei sma k da en online’, 2024).
3.4 Public bodies
As is he case in mos o he coun ies, he wages o public se an s a e se by law. The employe
– in his case, he s a e – has he o mal igh o se wages unila e ally. De ac o nego ia ions ake
place be ween he public sec o unions (GÖD, Younion) and he ede al go e nmen and ep e-
sen a i es o he Aus ian ede al s a es and a e e y simila o he wage ounds in he p i a e
sec o . In addi ion o se ing he wages o public se an s, public au ho i ies ha e he abili y o
sign collec i e ag eemen s o hei non-execu i e s a like public u ili y wo ke s o hospi al s a ,
and do so egula ly. Such ag eemen s co e la ge numbe s o heal hca e wo ke s, o example.
10 Fo a desc ip ion o he ole played by manda o y associa ions in p ac ical wage-se ing, see o example
(Zucke s ä e , 2020).
11 Ka l Ko inek (*1940, †2017), a o me membe o he Aus ian Cons i u ional Cou , gi es a de ailed analysis o
he cha ac e and oles o p o essional sel -go e nance in he poli ical sys em o Aus ia, ep in ed in Ge man in
Ko inek (2018).
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Wi scha und Gesellscha 50 (4): 83–116
4.3 Manda o y o ganiza ions ep esen ing employe s
While he nego ia ions on he employees’ side a e domina ed by olun a y o ganiza ions, employ-
e s usually o ganize wi hin hei espec i e manda o y o ganiza ions. Ne e heless, he e a e
some impo an ag eemen s which a e nego ia ed by olun a y employe s’ o ganiza ions, as
will be desc ibed below. To unde s and he in e play o olun a y and manda o y o ganiza-
ions in he ield o collec i e ba gaining, i is impo an o unde s and he ela ion be ween
he wo o ms o o ganiza ion.
Table 3 gi es a quan i a i e imp ession o he a ious o ganiza ional o ms on he employe side
in collec i e ag eemen s. While he Chambe o Comme ce co e s he employe s o abou wo
hi ds o Aus ian wage ea ne s and abou 16% all in o he wide public sec o , he emaining
oughly 15% is co e ed by o he ins i u ions. The da a a e incomple e in he ield o ag icul u e
as he base da a a e om he su ey o p oduc ion and se ice en e p ises which does no co -
e his sec o . None heless, he a ailable da a highligh he qui e subs an ial amoun o o ganiz-
ing wo k necessa y o Aus ian unions o main ain hei ba gaining co e age e en in spi e o
he chambe sys em.
Table 3: Employees by employe o ganiza ion
Legal s a us o he employe associa ion Emp-
loyees Sha e
Wi scha skamme (Economic Chambe s) 2,468,067 67.71%
Landwi scha skamme (Chambe o Ag icul u e) 391 0.01%
Kamme de eien Be u e (Chambe s o Libe al P o essions) 126,207 3.46%
Be u s e einigung de A bei gebe (Volun a y Employe s’ O ganiza ions) 75,312 2.07%
Sonde gese z (special legal p o isions) 108,740 2.98%
Mixed (he e ogeneous g oups ac oss di e en employe s’ o ganiza ions, and he public sec o ) 226,690 6.22%
Mindes lohn a i (minimum wage a i ) 1,007 0.03%
Ö en liche Kö pe scha (public body) 583,081 16.00%
Unbekann (unknown) 55,510 1.52%
Sou ce: S a is ik Aus ia, own calcula ion; o de ails see Annex 1.
4.3.1 The Economic Chambe s (Wi scha skamme , WKO)
The WKO o Aus ian Economic Chambe s usually ep esen s he employe side in wage nego-
ia ions. Membe ship o he chambe is manda o y o mos en e p ises and EPUs. The cham-
be is o ganized a he na ional le el and a he le el o he nine ede al s a es. The chambe s
a e o ganized in o se en majo sec ions: C a s and T ades, Indus y, Comme ce, Banking and
Insu ance, T anspo , Tou ism and Leisu e, and In o ma ion and Consul ing, which in u n a e
di ided in o b anch o ganiza ions called a Fachg uppe, Fach e band o G emium. The igh o
98
Zucke s ä e (2025): Who se s wages?
nego ia e lies wi h he Fachg uppe o Fach e band a he ede al s a e le el. The de ailed o ga-
niza ional cha is shown in he online appendix.
This ede al and b anch s uc u e esul s in a e y ine-g ained ne o p o essional ep esen a-
ion wi h hal o he uni s consis ing o ewe han 92 en e p ises, and 90% ha ing ewe han 700
membe s. This gi es he indi idual membe su icien in luence in he ep esen a i e body. The
o ganiza ions a he ede al s a e le el usually delega e hei igh o nego ia e o hei na ion-
al b anch-le el o ganiza ion. Bu hey implici ly e ain a o m o e o powe o e hei cen al
o ganiza ion as hey can eclaim he igh o nego ia e a any ime. This is c ucial as i mode -
a es he cen alis ic cha ac e o he Aus ian wage nego ia ion sys em.
The b anch-le el o ganiza ions o he WKO a e no p edominan ly wage nego ia ion bodies.
They also ep esen membe s’ in e es s o go e nmen and Eu opean bodies and p o ide se -
ices such as suppo in o eign ade o educa ion and aining o he sel -employed. They also
play an impo an ole in con olling access o some p o essions in e ms o p o essional edu-
ca ion and licensing (Meis e - ode Konzessionsp ü ung). They also de e mine he sel -go e n-
ing bodies o he social insu ance sys em o he sel -employed, and hey nomina e employe s’
ep esen a i es wi hin he social insu ance sys em o employees.
The sys em o he Economic Chambe s co e s oughly 2.5million employees o abou 66% o all
Aus ian employees. This cons i u es one bu ob iously no he only eason o he high co e -
age a e o collec i e ba gaining in Aus ia.
4.3.2 O he chambe s
Mos o he o he chambe s, like hose o lawye s, doc o s and ag icul u e, also nego ia e col-
lec i e ag eemen s on behal o hei membe s wi h he espec i e b anches o he ÖGB. In o al,
hese chambe s o he libe al p o essions employ abou 3.5% o employees (app ox. 130,000).
In he pas , ag eemen s wi h hese chambe s p o ed o be mo e di icul and less coope a i e.
His o ically, he Chambe s o Ag icul u e17 we e also impo an pa ne s o collec i e ag ee-
men s. They s ill nego ia e on behal o hei membe s, bu hei quan i a i e impo ance is
diminished. Acco ding o NACE-based s a is ics, ag icul u al en e p ises employ abou 26,000
employees, ha dly eaching 0.7% o o al employmen in Aus ia.
17 Again, as he ede al s a es a e in cha ge o he egula ion o ag icul u e acco ding o he cons i u ion, he Chambe s
o Ag icul u e ha e no legal ep esen a ion a he na ional le el, which hey compensa e by olun a y coope a ing
wi hin he Landwi scha skamme Ös e eich, which legally speaking is a Ve ein o associa ion o he ede al cham-
be s. They a e also o in e es om a legal pe spec i e as some o he ede al chambe s ep esen bo h employe s
and employees wi hin one o ganiza ion bu in sepa a e o ganiza ional depa men s. Whe he his is su icien o
gua an ee he independence o he wo nego ia ing pa ies is s ill deba ed by labou law expe s, among o he s
(Mosle , 2012, p. 288 ).
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Wi scha und Gesellscha 50 (4): 83–116
4.4 Volun a y o ganiza ions ep esen ing employe s
As shown in he online appendix, he e is a subs an ial numbe o olun a y o ganiza ions
ep esen ing employe s in spi e o , o in addi ion o, he sys em o manda o y ep esen a ion.
Among hese o ganiza ions, wo di e en ypes o si ua ions can be dis inguished: o ganiza
-
ions ep esen ing employe s ou side he sys em o manda o y membe ship and o ganiza ions
ep esen ing employe s concu en ly wi h manda o y ep esen a ional sys ems. Some o he
la e nego ia e hei own ag eemen s while o he s lea e nego ia ions o he ep esen a i e bod-
ies o he manda o y sys em.
The i s g oup consis s o employe s’ o ganiza ions ha we e his o ically ou side he chambe
sys em, like newspape publishe s o elec ici y supplie s.18 These o ganiza ions ha e a long-
s anding adi ion o nego ia ing collec i e ag eemen s. Newspape publishe s, o example,
ha e special egula ions due o he impo an ole o media in a democ acy, which kep hem ou
o adi ional b anch o ganiza ions. The numbe o people employed by newspape s is es ima -
ed a a ound 5,000. Elec ici y supplie s we e ou side he sys em as hey ha e been s a e-owned
o mos o he ime since Wo ld Wa II and he e o e he e was no need o in eg a e hem in
ano he sel -go e ning s uc u e. They employ abou 20,000 people.
Ano he g oup o o ganiza ions consis s o newly o med employe o ganiza ions in he ield
o social and educa ional se ices. They ha e gained in impo ance o e ecen decades due o
he p i a iza ion o se ices o me ly p o ided by he public sec o o wi hin he amily, like
ca e o he elde ly and child en and some o he social se ices. These employe o ganiza ions
now o m an impo an pa o he ba gaining sys em. Wi hou he possibili y o ha e ecou se
o an o ganiza ion enjoying he ad an ages o manda o y membe ship, cons an p essu e and
o ganizing e o s om he union ha e been needed o keep his inc easingly impo an sec-
o in he ba gaining sys em. Employe s in he ca e sec o in Aus ia a e mainly non-p o i
en i ies and la gely dependen on public unding o he public p ocu emen o hei se ices.
This pu s hem in an in e media e posi ion be ween employees demanding highe wages and
public bodies o en unwilling o pay mo e o hei se ices. I migh be exac ly his in e me-
dia e posi ion which gi es he employe s an incen i e o o m an employe o ganiza ion ha
is able o p o ide collec i e ba gaining a all. Passing on inc eased labou cos s o hei pub-
lic clien becomes somewha easie i he e is a legal obliga ion o pay acco ding o a collec i e
ag eemen . This sec o o p i a e p o ide s o childca e, elde ly ca e and social wo k is es i-
ma ed o employ abou 150,000 people. This numbe is pa icula ly unce ain as o icial s a is-
ics s ill do no dis inguish su icien ly be ween he p i a e o -p o i , he p i a e non-p o i
and he public ca e sec o s.
18 Ano he example a e coope a i es especially in he so-called “Rai eisen” sec o , which consis o coope a i e o ga-
niza ions mainly o a me s p o iding a ious se ices like he wholesale o ag icul u al p oduc s o main aining
ag icul u al machine y. One o he sub-sec o s in he Rai eisen sec o is banking. They o m hei own associa ion
and use hei igh o collec i e ba gaining egula ly. The numbe o people employed by Rai eisen is ex emely
ha d o es ima e.
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Zucke s ä e (2025): Who se s wages?
The second g oup o employe s’ associa ions consis s o lobby o ganiza ions like he Banke s
Associa ion, he Associa ion o Insu ance Companies o he Fede a ion o Aus ian Indus ies.
These o ganiza ions usually coope a e e y closely wi h he co esponding o ganiza ional
uni s o he Economic Chambe s. In some cases, hey e en ake o e some o he asks om he
chambe . While he ep esen a i e bodies om he inance sec o ake pa in collec i e nego-
ia ions, o he bodies like he Fede a ion o Aus ian Indus ies lea e his ask o he chambe .
In any case, i a olun a y o ganiza ion eaches an ag eemen , i eplaces he one nego ia ed
by he manda o y body. In many cases i is easie o olun a y o ganiza ions o ensu e b oad
compliance by lea ing he ask o nego ia ing o he manda o y o ganiza ion. Membe s o ol-
un a y o ganiza ions could always use he exi op ion i hey a e no sa is ied wi h he comp o-
mise eached in wage nego ia ions, while membe s o manda o y o ganiza ions only ha e he
oice op ion19 (Hi schman, 1974) wi hin hei ins i u ion. I olun a y o ganiza ions come o
an ag eemen , he WKO usually signs he same ag eemen o gi e i ull co e age in he sec o .
4.5 Social pa ne ship and he Pa i y Commission
This a icle will no go in o de ail on he impo an poli ical ole played by social pa ne s
in Aus ian pos -wa policy beyond pu e wage policy.
20
One cen al elemen was he Pa i y
Commission (Pa i ä ische Komission) ha was se up in 1957 as a olun a y ins i u ion o coop-
e a ion be ween he main bodies o employe and employee ep esen a ion. The commission
played an impo an ole in cu bing pos -Wo ld Wa II in la ion in Aus ia by a oiding a high
equency o con ac enewals on he wage side, and by supe ising and egula ing he p ices
o many goods. The cha ac e o he commission has changed subs an ially om a co e ins u-
men o social pa ne in luence in economic policy o an ad iso y and consul a ion ins umen
o he social pa ne s. I s ill plays some ole in coo dina ing he posi ion o he social pa ne s
in he main ields o economic policy (‘Die Sozialpa ne Ös e eich’, 2024).
In he ield o wage policy, i e ains he ask o pe mi ing he enego ia ion o collec i e ag ee-
men s, bu i ocuses mainly on hei iming. Unions s ill eques pe mission om he wage
commission o enego ia e o enew collec i e ag eemen s. Almos always his p ocedu e is a
echnicali y, as he commission does no exe in luence on he con en o ag eemen s bu con-
s i u es an impo an sa egua d o keep he sys em om alling apa o dissol ing in dema -
ca ion issues. Economis s would call i an impo an o -equilib ium ins umen , which en ic-
es subdi isions o he unions as well as employe s o coo dina e and epo o highe le els o
19 Albe O. Hi schman, in his seminal wo k Exi , Voice, and Loyal y (Ge man: “Abwande ung und Wide sp uch”)
(Hi schman, 1974) dis inguished wo possible esponses o membe s i hey hink ha an o ganiza ion Is p o iding
no enough bene i o hem: hey can exi (wi hd aw om he ela ionship); o , hey can use oice i.e.. a emp imp o-
e he ela ionship h ough communica ion o complain s, g ie ance o p oposals o change wi hin he o ganiza-
ion, in ou case also o e agains he cu en leade ship. (‘Exi , Voice, and Loyal y’, 2024).
20 See Ka lho e and Tálos (2005) o comp ehensi e o e iews o he diminishing poli ical in luence o he social
pa ne s, and Ka lho e and Tálos (2019) on he changes du ing he i s and second cen e- igh coali ion. A de ai-
led accoun o he cu en ole o hese social pa ne o ganiza ions can be ound in Ma e baue and Wi zani-Haim
(2023), Pe nicka (2022), and Tálos and Hin e see (2019).
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Wi scha und Gesellscha 50 (4): 83–116
he o ganiza ion, and po en ially e uses o allow nego ia ions i hey a e no in line wi h high-
e -le el in e es s. In he iew o many commen a o s, he wage commission now plays a mino
ole, con ined mainly o asks o documen a ion (Schille , 2018, p. 189 ).
5. The co e o he social pa ne ship: Collec i e ag eemen s
Collec i e ag eemen s (Kollek i e äge) a e he co e legal ins umen in he Aus ian sys em
o wage-se ing. As in mos coun ies, hey ake an in e media e posi ion be ween di ec egula-
ion by law and p i a e con ac ual ag eemen s be ween he pa ies in ol ed. This in e media e
posi ion is some imes illus a ed in labou law by a nes ed sys em o legal egula ions, s a ing
a he indi idual le el o employmen con ac s, which mus obey he limi a ions o he ele an
collec i e ag eemen bu a e usually ee o de ia e in a ou o he employee. The same holds a
he nex le el o collec i e ag eemen s, which again mus s ay wi hin he minimum s anda ds se
by law bu again can imp o e condi ions abo e ha s anda d o he bene i o he weake pa y
o he employmen ela ion, i.e. he employee. Thus, in mos cases he hie a chy is om gene -
al o speci ic, wi h he la e usually being a ou able o he employees. Howe e , e en wi hin
he limi s o hese a ou abili y p inciples, ade-o s and deals wi hin connec ed dimensions
o he egula ion a e possible.
Figu e 2: Rela ions o collec i e ag eemen o o he egula ions
Sou ce: own p esen a ion
5.1 The con en o collec i e ag eemen s
The ag eemen s speci y collec i e minimum pay o di e en job ca ego ies (KV-Löhne [wag-
es], KV-Gehäl e [sala ies]). These wage o sala y ables ange om e y de ailed ca ego ies o
102
Zucke s ä e (2025): Who se s wages?
quali ica ions and expe ience o a he simple h ee o ou -g oup schemes wi h li le u he
di e en ia ion. Quali ica ions a e speci ied in many ways, he ocus being on he desc ip ion
o quali ica ions ac ually needed on he job, no on he job holde ’s o mal quali ica ions. The
same holds o expe ience ca ego ies ha explici ly e e o o me wo k expe ience wi hin a
pa icula ca ego y bu no o age o leng h o employmen a he speci ic i m.
In abou a hi d o ag eemen s, inc eases in ac ual pay (Is -Löhne, Is -Gehäl e ) a e also ag eed
upon. These a e no o be con used wi h ake-home pay o ne wages as hey e e o he g oss
ea nings people ac ually ecei e. While minimum pay is binding o all people doing a pa ic-
ula job, i by no means cons i u es he maximum pay o ha wo k. I is pe ec ly legal o o e -
pay wi hou changing he minimum ca ego y. A change in he pay ca ego y becomes obliga o y
only i he con en o he job alls in o a highe classi ica ion. Fi ms egula ly o e pay he min-
imum o gi e people ex a incen i es, o ewa d hem o speci ic addi ional skills, o o com-
pe e o wo ke s wi hin he sec o . In some sec o s i has become s anda d in wage nego ia ions
o also a ange inc eases in ac ual paymen s. Wi hou such ag eemen s, only people ea ning
below he new minimum would bene i om pay inc eases. Inc eases in ac ual pay end o be
sligh ly lowe han inc eases in minimum pay.
The e a e some impo an poin s which mus be highligh ed he e:
Only minimum pay pe job ca ego y is binding, especially o newly hi ed employees, while
o e paymen s a e paid olun a ily by each i m. Whe he a b anch o e pays o pays exac ly
he ag eed minimum is no necessa ily in o ma i e abou labou ma ke igh ness o pay scales
ela i e o o he b anches. Some b anches end o use o e paymen s as a o m o special incen-
i e o hei employees, while o he s end o use p omo ions o highe job classi ica ions a he
han o e paymen . Pay scales can go high o some quali ica ions, like medical doc o s o o he
specialis quali ica ions. Due o he weak legal p o ec ion agains dismissals o pay educ ions
(see desc ip ion o Ände ungskündigungen abo e), e en highly paid employees need some p o-
ec ion agains pay p essu e a e hey ha e gained i m-speci ic human capi al in es men .21
Collec i e ag eemen s also speci y how and when wages o sala ies a e paid. Mos whi e-colla
employees a e paid on a mon hly basis, while o blue-colla employees hou ly wages a e s ill
in use.22 Collec i e ag eemen s also speci y wo king imes in a ious ways, i s o all he ime
used o calcula e pay. While his may seem i ial in he case o hou ly wages, i soon becomes
complica ed when discussing whe he he ime aken o change clo hes, clean up o a el o he
wo kplace e c. should be paid o no . As soon as weekly (ex emely a e) o mon hly paymen
(mos common) comes in o play, egula wo king ime, holidays and lea e in special cases ha e
o be speci ied. Depending on he b anch, hese speci ica ions a e pa o collec i e ag eemen s.
21 Collec i e mon hly minimum pay he e o e anges om he e y low le el o €566 o app en ices o den is s’
assis an s o €10,280 o leading medical doc o s wi h mo e han 35 yea s o expe ience a he end o hei ca ee .
22 Ou o 500 collec i e ag eemen s 375 speci y mon hly, 120 hou ly, 4 weekly and 1 annual pay. Some speci y a he
speci ic o ms o piece a es.
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Wi scha und Gesellscha 50 (4): 83–116
Holiday and Ch is mas bonuses enjoy p e e en ial axa ion in Aus ia, he e o e p ac ically
all collec i e ag eemen s speci y some o m o a 13 h and 14 h mon hly paymen . Despi e being
called “mon hly”, hey a e also common in sec o s wi h hou ly wages and wi h employmen s
o less han a ull yea .23 In e ms o annual wo king ime, holiday en i lemen s o single days
such as Ch is mas E e o New Yea ’s E e a e pa o some collec i e ag eemen s bu no in o h-
e s. Mo eo e , sick lea e, holiday en i lemen s, wo king condi ions, pe iods o no ice in case o
e mina ion and many o he egula ions can be s ipula ed in collec i e ag eemen s.
This lis o ma e s ha can be egula ed in collec i e ag eemen s is by no means exhaus i e, bu
he main akeaway is he possibili y o ha ing lexible and indus y-wide egula ions on many
wo k- ela ed issues wi hou delega ion o he i m le el, which e en ually ende ed hese a eas
an issue o compe i i eness be ween i ms. The ag eemen s also acili a e comp omises on pay
deals by widening he ange o po en ial subjec s o nego ia ions.
5.2 The common p ocedu e o each a collec i e ag eemen
The employe s’ side in collec i e ag eemen s is usually ep esen ed by he ele an chambe ,
mos ly he Economic Chambe s (WKO), while he employee side is usually ep esen ed by he
olun a y o ganiza ion o he Aus ian T ade Union Fede a ion (ÖGB). In o al, he e a e se e -
al hund ed collec i e ag eemen s co e ing he a ious b anches and collec i e wage ba gain-
ing is sp ead h oughou he yea . The s a o he alidi y o he ag eemen is concen a ed a
he beginning o he yea , wi h some ag eemen s commencing in sp ing and a hi d ocal poin
occu ing in No embe (Bi schi, 2023 Abb. 4, p90). Ag eemen s a e usually due o enego ia-
ion annually, bu wo-yea o e en longe pe iods a e possible as well.
The nego ia ions o he me al indus y ake place in au umn and a e usually ega ded as a bench-
ma k o o he b anches. Se e al s udies show he pa e n-se ing cha ac e o he au umn ound
(Bi schi, 2023; Knell and S iglbaue , 2009; T axle and B andl, 2008). The nego ia ing pa ies
use he in o ma ion om he au umn economic o ecas o he Aus ian Ins i u e o Economic
Resea ch (WIFO) and he Ins i u e o Ad anced S udies Vienna (HIS) as hei basic economic
ou look. Especially he WIFO plays a no able ole he e as i is pa ly inanced by he social pa -
ne s and usually conside ed o p o ide a neu al o ecas . This is also he poin a which expec ed
in la ion en e s he wage o ma ion p ocess. In addi ion, in o ma ion on pas in la ion, p oduc-
i i y g ow h, in e na ional uni labou cos s, b anch-speci ic de elopmen s (su eys, balance
shee da a, e c.), and unemploymen a e aken in o conside a ion.
Aus ian unions oughly ollow a p oduc i i y-o ien ed wage policy, which can as a i s app ox-
ima ion be summa ized by he ule ha in la ion plus gene al p oduc i i y inc ease equals he
23 I a pe son wo ks less han a ull yea , he addi ional paymen s a e calcula ed p opo ionally o hei ac ual ime
o employmen . In some cases, employees need a minimum employmen ime o ecei e addi ional paymen s; o
example, o se ice pe sonnel in ho els and es au an s i is wo mon hs.
104
Zucke s ä e (2025): Who se s wages?
nominal wage inc ease, also known as he Benya Fo mula named a e a o me p esiden o
he ÖGB (Mesch, 2015; Zucke s ä e , 2012). Howe e , his o e all guideline is modi ied in many
ways by gene al labou ma ke o b anch-speci ic ac o s. The e we e also discussions abou
he app op ia e measu e o in la ion as he guideline o wage demands du ing he high in la-
ion pe iod o 2022–2023. The unions decided o s ick wi h he p e ious con en ion o using
he a e age in la ion o he p e ious 12 mon hs. This o cou se caused a signi ican lag in wage
adjus men bu also helped o slow down in la ion p opaga ion.24
Nego ia ions in he me al sec o s a wi h gene al alks abou he economic si ua ion and
ou look, ollowed by a p esen a ion o he union’s pay demands. These demands we e p e
-
sen ed behind closed doo s o many yea s, bu now hey end o be p esen ed in public.
The ensuing se ies o nego ia ions usually leads o an ag eemen ha comes in o o ce by
1No embe . The demands made, as well as he app o al o he nego ia ion esul s, a e up o
he execu i e commi ee o he ele an union, which also decides on any indus ial ac ion.
A s ike mus be app o ed by he ÖGB, bu indus ial ac ion has been uncommon in Aus ia
o e ecen decades.
The p ocedu e in he e en o he escala ion o collec i e nego ia ions is o hold gene al s a
mee ings (Be iebs e sammlungen) in he mos impo an i ms a ec ed by he ag eemen and
o in o m employees abou he cu en si ua ion. I indus ial ac ion becomes necessa y, gen-
e al polls a e held among he a ec ed employees. In con as o o he coun ies, he e is no o -
mal obliga ion o do so since Aus ian legisla o s deemed i be e o a oid de ailed egula ion
o indus ial con lic and ely on he social pa ne s’ abili y o each cons uc i e solu ions. In
many cases, s ikes we e called o a e a majo i y o polled employees being in a ou o indus-
ial ac ion led o las -minu e comp omises. Some imes he ele an heads o he union and he
Economic Chambe s ac as media o s.
By 2023 he clima e in he co e sec o o he me al indus y had become less consensual. Employe s
o e ed wage inc eases o only 1.9 o 2.2% in esponse o union demands o 11.6%, while a e age
in la ion s ood a 9.6%. The nego ia ion esul ed in wa ning s ikes combined wi h p o ac ed
nego ia ions. While nego ia ions usually ake abou a mon h and each an ag eemen be o e
1No embe , in 2023 i ook ill 1Decembe (wage inc eases we e la e backda ed o 1No embe ).
To some su p ise, he e was no a emp by he leade ship o he union o he Economic Chambe s
o media e. I emains o be seen whe he his was a one-o complica ion caused by he unusu-
ally high and unexpec ed in la ion o a pe manen shi o a less consensual clima e. The com-
p omise included a biannual ag eemen wi h he pay inc ease o 2025 indexed o one pe cen -
age poin abo e a e age in la ion, he e o e p o iding a cooling-o a e a a he hea ed wage
ound in 2024. And he possibili y o enego ia e he inc ease i a i m is unde economic s ain
(“Hä e allklausel”).
24 The Russian in asion o Uk aine s a ed in Feb ua y 2022. Gi en he high dependency o Aus ia on impo ed ene -
gy, especially na u al gas om Russia ia Uk ainian pipelines, i was no deemed sensible o in oduce addi ional
unce ain y by changing he wage adjus men ule.
105
Wi scha und Gesellscha 50 (4): 83–116
6. Addi ional ins umen s and p o isions
The e is no minimum pay legisla ion in Aus ia besides he minimum pay se in collec i e ag ee-
men s.
25
E en hough no explici minimum pay legisla ion exis s, some legal egula ions do co -
e ce ain aspec s, such as he en i lemen o sign collec i e ag eemen s and he ex en o ha
ag eemen ’s co e age. As hese egula ions a e o en o e looked when analysing wage egimes,
hey will be b ie ly desc ibed he e.26
6.1 E ga omnes
I an employe is a membe o he con ac ing pa y o he collec i e ag eemen , he collec-
i e ag eemen by law co e s all employees o he company ega dless o hei membe ship
s a us in he con ac ing union (Aussensei e klausel). In con as o some o he coun ies,
his also has he consequence o ex ending collec i e ba gaining co e age o (highe -paid)
jobs in highe posi ions o o ganiza ional hie a chies. Only he co e o en ep eneu ial jobs
in op managemen posi ions a e exemp om collec i e ag eemen s. As men ioned abo e,
his is also a necessa y consequence o secu e employee igh s gi en he lexible employ-
men law and weak dismissal p o ec ion in Aus ia. The each o collec i e ag eemen s, and
hus o minimum pay egula ions, is he e o e ex ensi e despi e he lack o a uni e sal min-
imum pay ac .
6.2 Ex ension clauses
I an ag eemen has been eached wi h a la ge sha e o he employe s’ ep esen a ion (e.g. eigh
ou o nine ede al s a es), hen he ag eemen can be decla ed binding o all simila es ab-
lishmen s in Aus ia (Sa zung). The same holds o ag eemen s in which employe s a e ep-
esen ed by olun a y o ganiza ions i hose o ganiza ions ha e su icien economic impo -
ance wi hin hei sec o . Aus ian law allows o ex ension clauses o make all o some o he
s ipula ions o he ag eemen binding o non-membe s wi hin he same b anch o ac i i y.
Howe e , hey canno ex end beyond he b anch co e ed. The e a e a ew a eas whe e ex en-
sion is a egula p ac ice: p i a e heal h and social suppo o ganiza ions, o ganiza ions p o-
iding ambulance anspo , p i a e educa ional o ganiza ions (mainly in adul educa ion),
and newspape p in e s, because hey a e nego ia ed by non-manda o y employe s’ o gani-
za ions and ha e o be ex ended.
25 The e a e special egula ions (Mindeslohn a i e) o cases in which no employe s’ o ganiza ion exis s, bu hey a e
o mino impo ance.
26 An excellen o e iew can also be ound in Melze -Azodanloo (2016).
106
Zucke s ä e (2025): Who se s wages?
6.3 Minimum wage a i s
I no employe s’ o ganiza ion exis s, Aus ian law allows o so-called minimum wage a i s
(Mindes lohn a i e). These Mindes lohn a i e a e se by he Bundeseinigungsam on he eques
o he unions and a e consul a ion wi h employe ep esen a i es om he WKO. Minimum
wage a i s a e a somewha less s a e-cen ed o m o minimum wage laws which apply in sec-
o s whe e employees would be en i ely wi hou he oppo uni y o ha e some o m o collec-
i e ep esen a ion. The ypical a eas o minimum wage a i s a e people employed in he eal
es a e sec o like ca e ake s o domes ic employees, since landlo ds and p i a e households a e
no su icien ly o ganized o nego ia e ag eemen s on behal o employe s. Especially ag ee-
men s o domes ic wo ke s ha e gained in impo ance ecen ly due o he g owing ele ance
o elde ly ca e o ganized by p i a e households, i.e. 24-hou ca e wo ke s.
6.4 Special p o isions o eelance jou nalis s
F eelance jou nalis s a e a special g oup who, like employees, usually depend on one o some-
imes a ew di e en employe s. Unlike employed jou nalis s, hey lack any possibili y o col-
lec i e o ganiza ion despi e hei weak indi idual nego ia ing posi ion. The Aus ian Law on
Jou nalis s (Jou nalis engese z, Jou nG) allows special ag eemen s (Gesam e äge) ha p o ec
eelance jou nalis s jus like in a collec i e ag eemen (Leeb, 2018). This o m o collec i e ba -
gaining in a ield o inc easingly p eca ious non-s anda d o ms o wo k was included in he law
by 1999 and p o ides an example o po en ial u u e di ec ions o secu e he eedom o associ-
a ions in new o ms o wo k o ganiza ions. One o he p oblems he e is o allow o such ag ee-
men s wi hin EU compe i ion law (Risak, 2018).
7. The ole o i m-le el nego ia ions
Collec i e ag eemen s on wages and sala ies by i m-le el pa ies a e legally binding only i spe-
cial clauses in he ag eemen s allow o such i m-le el nego ia ions. None heless, many wage- e-
la ed issues (e.g. de ailed piece a es) a e esol ed in i m-le el nego ia ions. Fu he mo e, he e
a e in o mal ag eemen s on i m-speci ic o e paymen . These nego ia ions a e held be ween he
i m-le el employee ep esen a i es, i.e. wo ks councils (Be iebs ä e),27 and managemen . The
ules o hese elec ed bodies o wo ke ep esen a i es a e also pa o he Labou Cons i u ion
Law. Aus ian law equi es e e y es ablishmen employing mo e han 5 employees o se up a
wo ks council, bu only upon he eques o employees. Acco ding o he la es igu es, 54% o
employees in Aus ia a e ep esen ed by a wo ks council (Zeglo i s e al., 2023). Abou 10% o
employees wo k in en e p ises ha a e oo small o be en i led o ha e a local ep esen a i e.
These i m-le el ep esen a i es do no need o be pa o any union bu hey usually a e. The
27 Wo ks councils (Be iebs ä e) also ul il o he unc ions like aking pa in non-managing boa ds and o he o ms o
co-de e mina ion.
113
Wi scha und Gesellscha 50 (4): 83–116
Landa bei e kamme n
Chambe s ep esen ing all non sel employed people in ag i-
cul u e
Mindes lohn a i e Legal ins umen allowing he se ing o minimum wages, and
some o he minimum condi ions, in sec o s wi hou he possibili-
y o o ming employe o ganiza ions, o con ac wi h unions (i.e.
p i a e households). Unions can apply o he Bundeseinigunsam
o such an ag eemen .
Rai eisen A conglome a e o coope a i es se ing ag icul u e by p o id-
ing banking and ade se ices among o he s.
Sa zung
Ins umen o Aus ian Labou Law allowing he Bundes-
einigungsam o decla e a su icen ly b oad collec i e ag ee-
men binding o all employe s in a pa icula sec o .
Ve ein No o P o i o ganiza ion in acco dance wi h he speci ic law
he Ve einsgese z
Ve einsgese z Law on Associa ions
Wi scha skamme (WKÖ) Chambe ep esen ing all employe s in he ields o comme ce,
c a s, ade, indus y and p i a e se ices
ACKNOWLEDGEMENTS
The au ho hanks he edi o and h ee anonymous e e ees o many help ul sugges ions, and Ma ia Sla-
e o p oo - eading and many s ylis ic imp o emen s. I would like o hank many people o sha ing hei
knowledge o Aus ian labou law wi h me. S a ing wi h my a he Sepp Zucke s ä e sen, a seasoned
ade unionis , many com ades om he Aus ian T ade Union Fede a ion, including Jimmy Mülle and
Susi Haslinge , and om he Chambe o Labou , such as Sil ia H uska, Wal e Gagawczuk and Jose Ce ny,
and o cou se many o he s. I also bene i ed om he IR expe ise and p ac ical knowledge o my colleagu-
es Ve a Glassne , Ru h Nade e , Heinz Lei smülle and U sula Filipic. I am g a e ul o many discussions
wi h my colleagues in he economics depa men , especially Julia Ho mann, Michael Mesch and Gün he
Chaloupek, and o iends om he Eu opean and Aus ian academic communi y, including Ma kus Knell,
Tho s en Mülle , To s en Schul en, Sem Vandeke ckho e and many o he s. Needless o say, any emaining
e o s a e mine.
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