Social economy wants a “fair deal”, but financing is uncertain

The annual negotiations for the collective agreement Social Economy Austria (SWÖ) started on Tuesday and, as expected, had no result in the first round.

After a record increase in the history of KV negotiations last year (+9.2 percent), employees are demanding a salary increase of 6.1 percent this year. From the unions’ point of view, the SWÖ’s offer of the inflation rate (probably around 3.53 percent) was too low. SWÖ managing director and negotiator on the employer side, Yvonne Hochsteiner, sees the union’s demand as “unaffordable for the majority of non-profit employers in the social economy.” Nevertheless, it still expects a “fair conclusion” to the KV negotiations this year.

“Cost pressure is met with a lack of understanding”

Also the SWÖ chairman and Volkshilfe boss Erich Fenninger complains about the current financing situation. “We are under cost pressure and I find this incomprehensible: If the federal government or the states buy other things, then it is clear that the requested price will be paid. But we have to discuss and negotiate,” said Fenninger.

He also wants more financing security. The member organizations currently know, for example People’s Aid, Life support or relief organizationonly in the second, sometimes even in the third quarter, how much money they get for their services. “This is indecent, unprofessional and deeply dubious,” criticizes Fenninger. In addition, those in need of care or support have a legal right to many services.

There is also a lack of financial security for the care subsidy that the federal government introduced in 2022. This is currently not adjusted for inflation. In addition, staff from the disabled area are excluded.

Short-term political interventions

Fenninger also calls for more legal certainty and more involvement in legislation. Time and again, short-term political interventions cause problems in practice to be overlooked, which causes uncertainty in the industry.

The union is hoping to improve working conditions in the negotiations such as more roster stability and pay for night or weekend work. “It must also be in the interests of entrepreneurs to become more attractive as employers,” says for example Michaela Guglbergernegotiator for the union life.

The representatives of the Alternatives, Greens and Independent Trade Unionists In a press release, they point to wages in the industry that are too low, an acute shortage of personnel and a rapidly increasing number of orders.

Influx instead of a lack of staff

Hochsteiner sees no shortage of staff in nursing. On the contrary: since 2008, the number of employees in the entire health and social sector is said to have increased by 44 percent. In particular, nursing (+81 percent) and social services (+68 percent) are said to be particularly popular.

Fenninger explains the shortage of workers through the increasing demand due to demographic change and the increase in the number of mentally ill people within the population –

Hochsteiner also rejects the accusation that the professions in the SWÖ are poorly paid and points to the wage increases in the years 2022-2024, which amounted to 6.63 percent. This means that they were higher than in the trade (5.99 percent) and almost identical to the metal workers’ degrees (6.65 percent), although the latter had a higher starting salary.

More than 2,000 euros minimum wage

For a 37-hour week, employees under the SWÖ-KV earn at least 2,067.40 euros. For comparison: For metal fans it is 2,329.99 euros over 37 hours, and in retail it is 1,895.17 euros.

The SWÖ’s KV negotiations will continue on November 11th. The third date is scheduled for November 25th