Austrian Economy

The ÖGB differs from most trade union organizations in other democratic countries in that it is non-partisan and highly centralized. Different political views are represented by individual sections within the organization, the biggest being the Social-democratic section. Altogether, some 60 % of the Austrian labor force belong to the ÖGB. At the end of 1996 the ÖGB had a total membership of 1,535,053. The ÖGB consists of fourteen unions, each of them subdivided into further trade and professional groups. One of the principal tasks of the organization is the drawing up of collective bargaining agreements.

CHAMBERS OF LABOR

The Chambers of Labor are designed to support the ÖGB and the public authorities in any field where the interest of employees are concerned. In accordance with Austria's federal system, there are nine individual provincial chambers which are represented at the federal level by the Federal Chamber of Labor. Among the responsibilities of the chamber are the appraisal of draft legislation, drawing up an economic and social basis for effective representation of the employees' interests, providing training and advice for employees and for the workers' councils , and public relations.

Agricultural employees are represented by the Chambers of Agricultural Labor.

ECONOMIC CHAMBERS

The economic chambers are public corporations representing the enterprises active in Austria's economic life. There are nine regional chambers and one at the federal level, the Economic Chamber of Austria.

Each of the regional chambers, as well as the national or federal chamber, is divided into six sections: industry; commerce; trade; finance, credit and insurance; transport; tourism. And each section is split into further subgroups.

The Economic Chamber of Austria reviews draft legislation and, like the Chambers of Labor, is instrumental in shaping economic life through its activities on various advisory bodies. It supports the public administration and enters on collective bargaining agreements with the ÖGB.

The Economic Chamber of Austria also maintains trade commissioners in many foreign countries which provide a major contribution to the promotion of Austria's foreign trade.

The Chambers of Agriculture, which represent the interests of those independently employed on the land, exist only at the provincial level. There is central representation, however, at the Presidential Conference of Chambers of Agriculture.

FEDERATION OF AUSTRIAN INDUSTRIALISTS

The Federation of Austrian Industrialists, has a membership of 4,000 employers who, taken together, account for a work force of more than 400,000. In accordance with its significance the Federation exerts an influence on political decisions in the economic and social spheres.

The Federation's constituent bodies are the general management, the management board and the governing body. There are also special committees which deal with such fields as economic, social, tax and fiscal policy and foreign trade. The Federation has set up regional organizations and departments in the provinces.

ECONOMIC AND SOCIAL PARTNERSHIP

In Austria, employers and employees learned considerably from the bitter years of the First Republic. In the course of the Second Republic, representatives of labor and industry came to realize that it is vital to work together in the preparation and execution of economic measures, always giving top priority to the requirements of the economy as a whole. In particular they saw, and still see, the importance of close cooperation in keeping wages and prices in check, which means adopting a firm stand when demands are made by a particular interest group within one's own ranks.

This tradition of "economic and social partnership," as it has come to be known, is described by Fritz Klenner in the book "Österreich. - Die zweite Republik" as "not a new ideology and not a philosophy of life, but a new form of policy on the part of the unions and the employers, an adaptation to the modern system of social, if not economic equality and the consequent attempt to settle differences impartially."

Klenner goes on to confirm that labor and industry in Austria have indeed "settled their differences with more understanding and consideration for the common good than has been shown anywhere else in the world."

PARITY COMMISION

The policy is reflected particularly clearly in the work of the Parity Commission for wage and price negotiations. It is a voluntarily constituted forum with no legislative basis. The following bodies are represented on the Parity Commission: the ÖGB, the Federal Chamber of Labor, the Economic Chamber of Austria, the Austrian National Bank, the Presidential Conference of Chambers of Agriculture and the Ministries of Agriculture and Forestry, of Economic Affairs, and of Labor, Health and Social Affairs. All of these meet under the chairmanship of the chancellor. Only the first four of the above bodies are entitled to vote. The commission's decisions must be approved unanimously - a factor which significantly reinforces the process of compromise.

The Parity Commission wields no legal power but the organizations represented on it can use their influence to bring its resolutions to bear on the groups whose interests they represent. Any plans for wage or price rises must be presented to the commission's wage or price subcommittee. The wage subcommittee considers such plans in the light of their overall economic implications and can then give the go-ahead for negotiations between the contractual partners on changing the terms of a collective bargaining agreement. But the subcommittee has no power to influence the substance of any new agreement reached, least of all the extent of any wage increases negotiated. In the case of the price subcommittee, the applicant must submit an objective justification for the requested price increase to representatives of the employees' organizations before any decision can be taken. "Politico-economic debates" chaired by the Federal Chancellor serve the purpose of discussing medium-term economic policy.

Note: The economy information  has been obtained in part from the official government site. www.austria.org  & the CIA Fact Book Online.

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