Benya formula inhibits labor market reforms-union remains trapped in old thinking patterns.

The Freedom Economy (FW) has a clear criticism of the defense of Benya formula by ÖGB chief economist Helene Schuberth. In a current profile contribution, Schuberth speaks for the rigid coupling of wages in inflation and macroeconomic productivity. From the point of view of the freedom economy, this model is no longer up to date and hinders the necessary labor market policy reforms.

FW General Secretary Reinhard Langthaler emphasizes: “Ms. Schuberth defends a wage model from a past time. The challenges of our economy-from growing global competitive pressure to investment retention in Germany-cannot be solved with centralistic automatisms.

The criticism of the free economy at a glance:

• The formula does not differentiate between industries and regions, but leveled. This mainly affects export -oriented companies that suffer from increasing wage costs.
• Flexible operating wages are rejected by the ÖGB as a “underbidden competition”, although in many cases they are essential for survival for international competitiveness.
• The formula increasingly serves as a protective shield against any further development and prevents necessary deregulation and relief.
• The flat -rate coupling to inflation fails to recognize business reality, especially in times of weak economy and stagnating productivity.

The FW therefore demands:

• More personal responsibility and flexibility in wage formation, adapted to performance, industry and location.
• A gradual departure from the Benya automatic that breaks down economic development.
• Labor market reforms that strengthen companies, facilitate investments and promote employment.

Finally, Langthaler warns: “It is not about weakening workers – but about securing the basis for new jobs, innovation and economic growth. Anyone who cemented rigid systems endangers Austria’s economic future.”