2nd round of commercial KV negotiations ends without result: HV appeals to GPA to contribute to job security

Today the second round of collective bargaining negotiations for the retail sector ended without a result. The Employer side already had a moderate, realistic and fair KV increase of +2.8 percent in the first round of negotiations offered, which corresponds to an increase of 1 percent on the actual current Inflation of 1.8% in September and October 2024. Today, employers even raised the issue +3.1 percent improved. This KV increase would be at the absolute upper limit.

Retailers have to cope with declining sales for the third year in a row

Die Employee side however, demands one Increase of +4.3% plus additional days off – and with it one Increase well above the rolling inflation of +3.8 percent. From the perspective of the entire industry, this is simply unfinanceable without endangering many employment relationships. Why? On the one hand, Austrian retailers are already seeing this this year third year in a row with real sales decline. On the other hand, that is Cost burden for domestic retailers has gone through the roof in the last three years.

No industry in the country is more affected by bankruptcies

The logical consequence? “No industry in the country is stronger bankruptcies affected than trade. No industry currently has to Closings cope with it than we can. Only a third of trading companies will end this year with a profit. Given the extremely challenging situation, the new offer from employers is already very high at +3.1 percent.”confirms trade association managing director Rainer Will. “An even higher degree would now be like a heavy backpack that would put additional strain on the industry and many companies economic existence costs would. Our goal is therefore one viable compromisewhich stabilizes trade and offers employees a secure perspective.”

“We very much regret that no agreement could be reached in the second round of collective bargaining negotiations. Unfortunately, the employee side continues to hold on to unsustainable demands that our companies cannot possibly meet in this situation. In the second year of the economic recession would be more of a sense of proportion and Sense of reality urgently appropriate”adds the president of the trade association Stephan Mayer-Heinisch. “We accept our responsibility for our employees, but also for securing jobs – which can only be achieved with a sense of proportion in these difficult times.”

KV record results for 2023 show: Higher incomes do not flow into consumption

He has one KV record completion from 2023 (on average +8.39%) in any case clearly shown: Contrary to all forecasts, massive increases in income do not flow into classic consumption (= purchase of goods), but rather increase the savings rate. We are now proud in Austria 11,4%WIFO even expects the savings rate to rise to 11.5% in 2025.

What makes matters worse is this Shift in consumer spending away from the classic purchase of goods Travel, vacation, gastronomy and Self-optimization. Although consumer confidence has recently increased marginally, it remains at a low level.

“This year we will once again help our employees to cope with rising prices. But we can only get through the crisis together by working together Consumption of goods remained low and at the same time the savings rate rose sharply, as did spending on vacation, leisure and travel. Consumption requires trust, stable framework conditions and a perspective that gives people and companies equal security,” so Rainer Willthe spokesman for Austrian trade. In view of the crisis, Will clearly rejects the demand for more days off.

In any case, the employer side remains willing to talk and relies on constructive cooperation in order to find a sustainable solution with foresight

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