It came practically overnight, without notice and is also valid retroactively: From one day to the next, all plumbers were included by the legislature in the construction workers’ holiday and severance pay fund (BUAK). This means enormous additional payments for companies and higher contributions in the future.
“You have to imagine that there are entrepreneurs sitting in front of the television sets and watching the government negotiations where they are fighting for reductions in non-wage labor costs in the tenth of a percent range. And then, just like that and completely arbitrarily, ten percent of additional non-wage labor costs are thrust upon them. This is simply a joke and an impudence that needs to be dealt with in court. Above all because the plumbers are retroactively forced into BUAK, the additional payments were apparently set arbitrarily and no resulting benefits from BUAK are noticeable. The Vienna Chamber of Commerce therefore provides funds and legal support for lawsuits brought by Viennese plumbing companies against BUAK. We will support the lawsuit with all means and in every consequence,” says Walter Ruck, President of the Vienna Chamber of Commerce.
Legal and financial support
In 2023, the WK Vienna endowed a fund with five million euros to support lawsuits over Corona funding. By decision of the Presidium, this purpose has now been extended to include lawsuits from Viennese plumbing companies against BUAK’s approach. At the same time, discussions are currently underway with renowned law firms that will be called upon to support the members of the WK Vienna.
Viennese plumbing companies can already contact the Vienna Chamber of Commerce directly about BUAK at the email address buak_verfahren@wkw.at.
Great concern – great impact
There are 243 plumbing companies operating in Vienna, employing a total of 7,144 people. An average company that employs nine people faces unforeseen payments of around 80,000 euros. Therefore, one can roughly assume average costs of 9,000 euros per employee. For larger companies, the 100,000 euro mark is quickly exceeded.
The total costs for Viennese companies for the additional payments therefore reach at least a double-digit million euro amount. WK Vienna President Ruck: “For individual companies, these additional payments can take on dimensions that threaten their existence.”
To the background
The original plan was to change the law in the Construction Workers’ Bad Weather Compensation Act and in the Construction Workers’ Vacation and Severance Pay Act (BUAG), which included completely different topics and was submitted as a government proposal in May 2024. The Committee for Labor and Social Affairs initially passed the draft law unanimously on June 27, 2024, exactly as proposed in the government bill. It was only on July 4, 2024 that the SPÖ, completely unexpectedly, introduced an amendment in the plenary session of the National Council, according to which all plumbers should be included in the scope of the BUAG.
This inclusion in the BUAK was therefore not foreseeable and took place retroactively as of January 1, 2024. In addition, vacation bonuses must be paid retroactively into the BUAK for up to 20 years for previous periods of service with the same employer.
Subsequently caused unprofitability
The retroactive inclusion means that, according to calculations by the WK Vienna, each employee is between 4,000 and 5,000 more expensive due to additional payments for holiday bonuses in the BUAK in the calendar year 2024 than they would be outside the BUAK system. The plumbers could not take this into account in their price calculations because they had no knowledge of the retroactive change in the law.
An offer that was calculated in March, for example, and which is based on the personnel costs that the plumber had assumed in March, has therefore become completely unprofitable. However, the contracts concluded in March can no longer be changed, although the underlying personnel costs have retroactively increased massively.
Additional payments for up to 20 years
An even greater financial burden is associated with the fact that employers have to buy their employees’ previous service periods for the BUAK, even though these were not included before January 1, 2024. This concerns the periods that the employees were employed by the same employer and can be up to 20 years ago.
The BUAK determines the percentage of the holiday bonus that must be paid by resolution of the board. Initially, the BUAK board decided on 5.3 percent. Due to initial complaints, the percentage was suddenly set much lower – namely 2.75 percent. This shows that the calculation of the amount seems incomprehensible and arbitrary. Purchasing previous periods of service is a major financial burden for companies without any benefit for the employer.
Ruck: “Voodoo Economics”
“The mere determination of the holiday bonus, apparently without any economic basis, is completely absurd. This is voodoo economics, which suddenly and retroactively puts enormous strain on an entire industry without any discernible benefit. I therefore call on all Viennese plumbing companies to take legal action. As their interest group, the Vienna Chamber of Commerce will support them with all means possible,” says President Ruck.
demo slotslot demodemo slot x500