Additional wage costs finance Austria’s social network
Vienna (OTS) – After the ÖVP announced that it wanted to reduce non-wage labor costs, the first proposals for financing this project are now leaking out in the media. The arguments for reducing non-wage labor costs are that this will lead to an increase in employment, economic growth and improved competitiveness of the domestic economy. Vienna City Councilor for Finance and Economics Peter Hanke warns against a milkmaid bill.
“It is a misconception that a reduction in non-wage labor costs would generate new jobs or would automatically put the business location in a better position. Developed economies, such as Sweden – where non-wage labor costs account for 32% of labor costs, compared to 26.6% in Austria and 25% on average in the EU – show that a competitive economy and high living standards go hand in hand
“, emphasizes Hanke.
“Further wage costs finance our social network”
What the ÖVP also ignores in the discussion about reducing non-wage labor costs is the essential contribution they make to a socially just Austria, says Hanke. “If you summarize it briefly, the additional wage costs finance our social network. The taxes flow into the payment of pensions, sickness benefits, family allowances or childcare benefits. In addition, kindergartens and the urgently needed expansion of public transport also benefit from the additional wage costs through local tax.”
, explains Hanke. A reduction would therefore mean a reduction in spending on looking after our children and would, among other things, exacerbate the problem of old age and child poverty.
The lame argument that a reduction in unemployment benefits would ensure that “everyone who can work also has a full-fledged job” also falls short. Instead of attacking hard-fought social benefits, a targeted and serious economic and labor market policy is needed.
“In Vienna we show how it works and think business and work together. For example with the new skilled workers center of the city of Vienna, which for the first time in Austria is developing viable data on skilled workers needs as well as suitable solutions together with all partners. Or through active location marketing around Vienna and to secure Austria as a modern business location”
so Hanke.
Questions & Contact:
Mag. Roberta “Louis” Kraft
Media spokesperson City Councilor Peter Hanke
roberta.kraft@wien.gv.at
+43 1 4000 81211