Future inflation is the subject of debate

At the AUA, discussions took place on Friday but no negotiations occurred as neither side was willing to make concessions that could result in losing face. It has been around three months since the negotiations started in mid-January. Currently, there is no date set for another round of negotiations, and the union has not announced any further strikes. The agreement reached on Thursday between the union and the employers’ side at Vienna Airport will provide a seven percent increase for employees starting May 1st, based on the inflation rate of 6.34 percent over the past twelve months.

Vienna Airport, one of the major victims of the AUA conflict, is hopeful for a resolution to the dispute to avoid further damage to the 70,000 employees and other service providers in the area. Airport boss Günther Ofner believes that a solution must be reached between AUA management and the union for the sake of all involved parties. The ongoing strike has led to increased frustration among passengers, tour operators, and travel agencies, putting pressure on ground staff to resolve the conflict.

If an agreement is not reached and another strike occurs, the AUA conflict could have long-lasting negative effects on the domestic market. The potential consequences of the dispute are reminiscent of the 2003 railway workers’ strike against pension and ÖBB reforms, which lasted 66 hours. The current negotiation status includes an offer from AUA for an eight percent retroactive increase for 2024, with five percent each for 2025 and 2026. One point of contention is whether the five percent offered by AUA includes future inflation expectations.

To address this concern, a fixed inflation surcharge clause could be included in the agreement to ensure that employees are compensated adequately if inflation rates deviate from expectations. Resolving this issue will require good will from both parties involved in the negotiations.