In a bid to fortify the hospitality sector and render it more enticing to prospective employees, recent negotiations in Austria have led to substantial wage increases and labor agreements for workers in the hotel and gastronomy industry. These developments not only aim to elevate the living standards of the workforce but also endeavor to cultivate a more robust domestic labor market.
As of May, employees in the hotel and gastronomy sector are slated to receive an average wage hike of six percent, with an additional two percent increment scheduled for November 2024. Moreover, an agreement has already been reached for a wage increase in 2025, pegged at the 2024 annual inflation rate plus one percent. This announcement, made during a press conference by the Vida labor union and the Austrian Federal Economic Chamber (WKÖ), also heralds a minimum wage of 2000 Euros gross per month effective from May 1, 2025.
The labor agreement further ushers in several pivotal changes to the framework collective contract for the hotel and gastronomy industry. Notably, it stipulates that employees are entitled to a minimum of twelve Sundays off annually. Additionally, the night work surcharge will now be extended to all employees working past midnight, broadening its applicability beyond just hoteliers and nocturnal gastronomes. Furthermore, uniform regulations for holiday and Christmas bonuses across all federal states have been established, with the waiting period for entitlement reduced from two months to one. Additionally, the jubilee bonus can now be alternatively availed as leisure time.
A suite of enhancements has also been earmarked for apprentices. Effective from May 1, 2024, apprentices in the first year will receive a monthly income of 1000 Euros, escalating to 1120 Euros in the second year, 1320 Euros in the third, and 1420 Euros in the fourth. Furthermore, apprentices will be granted the first eight Sundays off during their apprenticeship to facilitate their transition into the workforce. Additionally, apprentices achieving outstanding or good results in their final exams will receive a bonus of 250 or 200 Euros respectively. Upon completing their apprenticeship, apprentices will be promptly assimilated into the higher-paid skilled worker wage bracket.
The new wage agreement is poised to render employment in the hotel and gastronomy industry more attractive, particularly amidst the ongoing quest for personnel. By the end of March, nearly 9,000 vacancies in the tourism sector were reported to the Labor Market Service (AMS), with the actual number of open positions estimated to be roughly twice as high.
In echoing sentiments expressed during the press conference, Berend Tusch, Vida's division head, articulated the collective aspiration to leverage the domestic labor market rather than sourcing talent from third countries. This sentiment was reinforced by Mario Pulker, WKÖ's gastronomy representative, and Johann Spreitzhofer, WKÖ's hotel industry representative, who perceive the new labor agreement as a catalyst for attracting more individuals to the industry.
From the employers' perspective, notable improvements include the extension of the averaging period for part-time employees, facilitating overtime compensation without supplements. Part-time employees can now negotiate averaging periods of up to 26 weeks, while those on fixed-term contracts can extend this to nine months.
Flexibility in extending fixed-term contracts has also been enhanced, allowing for a one-time extension of up to four weeks without interrupting the averaging period, for a maximum total duration of nine months. Additionally, the first month of employment is universally recognized as a probationary period for all employees, obviating the need for individual contractual agreements.
The new framework collective agreement and the ensuing labor contract are applicable to approximately 76,000 establishments and around 240,000 employees. Presently, 6,460 apprentices are undergoing training in hospitality professions, as per WKÖ statistics.
In conclusion, these developments signify a concerted effort to revitalize the hospitality sector, enhance working conditions, and foster greater enthusiasm for careers in hotel and gastronomy. By prioritizing the interests of both employees and employers, these agreements pave the way for a more vibrant and sustainable industry landscape in Austria.
