Austrian Hospitality Sector Faces Collective Bargaining Impasse Amidst Allegations of Fraud
Collective bargaining negotiations between employer and employee representatives in Austria’s hotel and catering industry have stalled, escalating a dispute marked by accusations of financial misconduct and concerns over working conditions. The impasse threatens to delay improvements to wages and benefits for workers in the sector.
The union vida initiated calls for negotiations with an open letter on Friday, proposing a “quality seal” to recognize businesses committed to fair labor practices. However, employer representatives have refused to engage in talks, according to reports from Kronen Zeitung and DiePresse.com.
Roman Hebenstreit, head of vida, has publicly criticized the industry, alleging a pattern of prioritizing profits while externalizing risks. He cited instances of employees being “parked” at the AMS (Austria’s Public Employment Service), uncovered cash register fraud, and a discovery of undeclared funds at a Salzburg business, as reported by vol.at. These statements prompted the chairmen of hotel and catering trade associations to demand an apology and suspend previously scheduled negotiations.
Hebenstein responded in a letter to the Chamber of Commerce, asserting that the issues he raised were already matters of public record. He argued that blocking negotiations over his statements was illogical, and reiterated the need for transparency and accountability within the industry. The proposed quality seal aims to highlight businesses that adhere to honest practices and provide equitable working conditions.
Employer representatives remain firm in their position, demanding a retraction of Hebenstreit’s “demonstrably erroneous and offensive blanket slanders” against Austria’s hospitality sector before any negotiations can resume, according to OTS.at.
The dispute unfolds against a backdrop of significant changes already slated for the industry. A new collective bargaining agreement, effective November 1, 2024, includes provisions for a minimum wage of €2,000 per month starting in May 2025, as detailed in reports from reportergourmet.com. The agreement also addresses work-life balance, allowing for six working days followed by two days off, with compensation for any shortfall. Employees are entitled to at least 12 Sundays, plus one Saturday and one Monday, free from work.
Further adjustments include potential vacation synchronization with compensation, extended payment terms for temporary contracts (up to nine months), equal treatment for part-time and full-time employees, overtime compensation, and bonuses for apprentices who successfully complete their training. A 6% wage increase took effect in May 2024, with an additional 2% increase implemented at the beginning of November 2024.
Austria does not have statutory minimum wage legislation; instead, minimum wages are established through industry-level collective bargaining agreements, covering approximately 98% of the workforce, according to a report from the European Trade Union Institute (ETUI). The extensive coverage is largely due to the mandatory membership of private sector companies in the Austrian Chamber of Commerce.
Recent changes to the collective agreement for gastronomy and hotels, effective January 1, 2025, address the calculation of average earnings when work hours are adjusted during the calendar year and the averaging of allowances such as night work and foreign language supplements. Clarifications have also been made regarding occasional employment and anniversary bonuses, as outlined by WKO.
The current stalemate raises concerns about the timely implementation of these planned improvements and the potential for further disruption within the Austrian hospitality industry. The lack of dialogue between employer and employee representatives casts a shadow over the future of labor relations in the sector.
