Union Wants More Than 3 Percent Salary Increase in Retail Collective Agreement Negotiations

The social partners had decided that if the inflation rate is 3 percent or more from October 2024 to September 2025, the collective agreement negotiations for 2026 will be renegotiated. Mario Ferrari, the new federal manager of the GPA union and chief negotiator for the retail collective agreement, stated that they had expected lower inflation. The GPA does not specify a concrete number for the demanded increase ahead of the negotiations.

Conclusion of Retail Collective Agreement Negotiations 2024 and 2025 Below Inflation

After the retail collective agreement conclusions in 2024 and 2025 below the rolling inflation, the union is pushing for 2026 for "a contribution to securing purchasing power" of retail employees. For 2025, the union and the Chamber of Commerce agreed on a collective agreement increase of 3.3 percent with a rolling inflation of 3.8 percent. Once again, they will not conclude below the inflation, as they have already made a contribution, said unionist Ferrari. Due to wage restraint, end consumer prices in retail have not decreased either, with the cost of goods being the largest cost factor in retail. According to the union, personnel expenses measured against business performance were 11.6 percent in 2024. The full-time starting salary for retail employees (Level B) is 2,102.00 euros gross per month (1,675 euros net). The part-time rate in retail was recently around 43 percent.

The now obsolete collective agreement conclusion for 2026 would have looked as follows: Up to a rolling inflation of 2.3 percent, the salaries of retail employees would have been increased by 0.5 percent above the inflation rate. With an annual inflation of 2.4 and 2.5 percent, 0.4 percent would have been added. At 2.6 percent inflation, the increase would have been 0.3 percent, at 2.7 percent only 0.2 percent above inflation was planned, and at 2.8 percent only 0.1 percent.

Union: Collective Agreement Reform Process Obsolete

As part of the two-year agreement, changes in the framework law were also to be negotiated in a collective agreement reform working group. "The reform process was part of the agreement," said GPA federal manager Ferrari. By reopening the collective agreement conclusion, the reform process is also obsolete, and the framework law demands from the previous year are now again part of the demand package. The union demands a right to increase working hours if overtime is regularly worked and a 50 percent surcharge rule from the first overtime hour. Another demand is additional permanent days off, 1 working day after 5 years of service, 2 working days after 10 years of service, and 3 working days after 15 years of service.

The economic downturn in the years 2023 and 2024 has led to declining real sales in the trade sector. There were numerous bankruptcies in the fashion, shoe, and furniture trade, such as Kika/Leiner. From April to July, retailers were able to record a real revenue increase again this year, but in August there was a real sales decline according to Statistics Austria. However, according to the union, the trade sector is "better off than originally forecasted".

First Negotiation Date for Trade Collective Agreement on November 6

The current metalworkers' collective agreement settlement below inflation and the civil servants' salary agreement are being used by some economic representatives as a model for other sectors. "We don't have to do copy and paste," said WKÖ trade chairman Trefelik in mid-October to APA. They want to negotiate "in a calm manner" to preserve jobs and businesses.

The trade collective agreement negotiations will start with the traditional submission of demands, including the first round of negotiations on November 6 in Vienna. Further possible negotiation dates are currently available on November 13 and November 24.

The chairman of the GPA trade sector and second chief negotiator, Martin Müllauer, does not want to aim for a two-year agreement after this year's experiences. A staggered collective agreement is possible, but they are "a friend of linear agreements," added Ferrari. The union traditionally rejects one-time payments.

(APA/Red)

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