The GPA-DJP services union has underlined the effectiveness of relying on minimum wages in collective agreements. A recent report by the Hans Böckler-Stiftung in Germany notes that Austria has one of the smallest percentage of low-paid workers in Europe. This is down to the very high level of collective bargaining coverage with most sector agreements having a monthly minimum salary of at least €1300, several with €1400 and with unions pushing for a €1500 minimum. Trade unions still need to work on some areas of the economy where workers are not covered by collective agreements as well as negotiating higher minimum rates. The GPA-DJP also underlines the important role minimum wages play in protecting purchasing power and underpinning demand in the economy.
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Effectiveness of minimum wages in collective agreements
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