Today at the start of the KV negotiations Demands presented by employees in retail for the 560,000 retail employees and trade workers are causing disbelief among the trade association and its members. In the second year of a macroeconomic recession and for the third year in a row declining real sales in retail would be a KV increase 4.8 percent simply unfinanceable.
Trade records 4 bankruptcies – per working day
“There are more bankruptcies in Austria this year than ever before. No industry is more affected than retail; we record an average of four bankruptcies per working day. Therefore, the 4.8 percent increase in KV demanded by employees today is unthinkable for us. That would economically ruin many domestic trading companies and make sustainable job security impossible.”says trade association managing director Rainer Will in a first reaction.
Trade is one of the most important pillars of the Austrian economy; it is a job driver and the country’s largest private employer. However, according to the AKV’s insolvency statistics, it is already 2024 757 commercial bankruptcies To put it simply, these are by far the most bankruptcies of any industry. Both Profit margins The industry is traditionally one of the bottom performers in this country.
Only 30% of retailers are making a profit this year
In addition, just a third of the dealers indicates one for the year as a whole Profit to generate. The sales development also currently gives little reason for optimism. In 2022, retail recorded a price-adjusted sales decline of -0.8%, In 2023 the real minus was even -3.5%. This year, demand in domestic retail will fall significantly again, at the same time the foreign outflow in online trading increases massive.
Study shows high employee satisfaction in retail
Despite all the economic challenges, Austrian trade is one of them most attractive and future-proof employers in the country with fair working conditions and flexible, family-friendly working hours. 85% of employees rate their job as attractive, 77% would recommend their position in retail and 79% are satisfied with their working hours.
Speaking of attractiveness: As is well known, wages in retail were increased by 8.4% as part of the last KV negotiations in 2023. The Full-time minimum salary is therefore 2.124 Euro and makes the attractiveness of the industry clear in numbers. In addition to the minimum wage, there are often overpayments, surcharges and variable bonuses, and there are also great opportunities for advancement in the industry.
Focus on job security
“It takes one Reality check! On the sales side, we are heading for the third year in a row with declining real sales figures. Higher incomes are saved, not spent in trading. Therefore, on behalf of the dealers, we appeal to the GPA union to assume its responsibility for sustainable job security so that the workers can remain in permanent employment beyond the turn of the year,” so Stephan Mayer-Heinischpresident of the trade association.
“A KV degree above rolling inflation is unfinanceablethat would be violent economic collateral damage trigger. Already standing now 18 percent of all communities in Austria do not have their own local supplier there. “Unfortunately, the cake has become smaller and smaller over the last three years, so the pieces can’t get any bigger now,” confirmed Rainer Willthe spokesman for Austrian trade.
Fair offer from the employer: +2.8 percent
The trade association assesses today’s employer offer positively and fairly, which provides for a KV increase of +2.8 percent. This corresponds to an increase of 1 percent on the actual current inflation from September 2024 (1.8%) and would therefore mean a significant increase in purchasing power.