Roman Hebenstreit, chairman of the transport and services union vida, criticizes contradictions and dead ends in the current economic policy debate in Austria. The limitation of wage increases to strengthen competitiveness called for by leading economists, especially by representatives such as Wifo boss Gabriel Felbermayr, contradicts the burning need to make areas crucial to the economy, such as the transport and service sectors, more attractive again for urgently needed workers.
“It is a fundamental mistake to believe that limiting wage increases can revive the economy when there is a dramatic labor shortage at the same time,” said Hebenstreit. “Austria is not only struggling with a recession, but also with a blatant shortage of qualified specialists in many key sectors. Deterring these people with a cautious wage policy is not only counterproductive, but dangerous.”
There is a shortage of workers, particularly in the areas of transport, catering, care and other essential services. But these professions in particular are often poorly paid, even though they involve demanding working conditions. “We therefore have to invest specifically where people are needed and not drive down wages,” emphasizes Hebenstreit. “If we want to make these jobs attractive, we need decent wages and better working conditions.”
Trying to increase competitiveness by limiting wage developments contradicts the reality of the labor market. “How are we supposed to attract workers if we don’t even offer them appropriate pay?” Instead, Hebenstreit calls for a differentiated wage policy that should take into account the special needs of the sectors in which the labor shortage is greatest.
According to Hebenstreit, four central measures are necessary for this: targeted wage increases in key sectors, improvements in working conditions, an end to the senseless red-white-red card measure and investments in training and further education.
Wages would have to be further increased specifically in those sectors that need workers most urgently, such as nursing staff, truck and bus drivers or cleaning staff.
In addition, there is a need for the possibility of flexible working hours, support with childcare and measures to improve the balance between work and family.
“The red-white-red card has not yet solved any problem in our labor market,” says Hebenstreit, calling for its end. Instead, he advocates a settlement policy that takes effect where there is no other solution. “We have to meet needs in the labor market without putting pressure on wages. A targeted settlement policy that also takes family reunification into account is the right way forward.” Hebenstreit emphasizes that it is important to promote social integration in order not to subsequently create new social problems, such as an increase in problem schools.
As a fourth and final measure, greater investment must be made in the training of domestic workers in sectors affected by the personnel shortage. “This is a long-term solution, but it is essential,” said the vida trade unionist. “We must finally rely on these courageous and targeted measures to improve the competitiveness and attractiveness of the labor market and throw old neoliberal recipes overboard. This is the only way we can combine long-term economic success and social justice,” concludes Hebenstreit.