Discussion on Civil Servants' Graduation to Resume by Government

The government of Austria is attempting to renegotiate the public servants' wage agreement for the coming year, a move that has been met with resistance from the trade unions. The current financial situation of the government, which is under pressure, has led to calls for renewed talks with the trade union.

Last year, an agreement for 2026 was made under the assumption of a different financial situation. The agreement, which provided for an average increase of 3.5%, 0.3% below inflation, was meant to be compensated in 2026. However, the government has already reached an agreement for 2026 with a 0.3% increase above inflation.

The current position of the Public Employees' Trade Union is to demand a significant wage increase to compensate for inflation and rising living costs. The union can refer to the double agreement from the previous year regarding the wage increase. The threat of industrial action accelerated the agreement in 2025.

State Secretary Alexander Proell has invited the trade union chairmen for a discussion on wage development. This year, the government has initiated salary talks without the usual procedure of requesting the initiation first. Finance Minister Markus Marterbauer has asked for understanding, citing high inflation and strict budget implementation as reasons for seeking the discussion.

The unusual procedure might be due to the union's ability to refer to the double agreement from the previous year. Only NEOS might be willing to proceed with a renegotiation despite resistance from the works council. Romana Deckenbacher, the head of the Christian trade unionists' faction in the National Council, and the chairpersons of the two major trade unions, GPA and pro-ge, might find it difficult to reverse a wage increase agreed upon by the social partners.

The APA - Austria Press Agency, the largest national news and press agency in Austria, owned by Austrian daily newspapers and the ORF, has made inquiries to the trade union, but their requests have remained unanswered. The trade union for public service has not made a public statement about the renegotiation of the wage agreement.

Proell's statement reflects the government's weak negotiating position due to the already concluded agreement for 2026. The government is currently facing budgetary pressures, leading to calls for renewed talks with the trade union. Whether the parties will reach a compromise remains to be seen.