Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Austria (Ratification: 1974)

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 and 99 (minimum wage) and No. 95 (protection of wages) together.

Minimum wage

Articles 1 and 2 of Convention No. 26 and Article 1 of Convention No. 99. Different minimum wage rates for young workers. The Committee notes that in reply to its previous comments on this matter, the Government indicates in its report that the High Regional Court of Vienna has ruled on several occasions that collective agreements establishing lower minimum wage rates on the basis of age constitute a prohibited form of discrimination.

Protection of wages

Article 4 of Convention No. 95 and Article 2 of Convention No. 99. Partial payment of wages in kind. The Committee notes that in reply to its previous comments concerning section 21(1) of the Lower Austria Agricultural Labour Regulations which provides that the type, nature, and extent of partial payments of wages in the form of use of land and livestock are to be agreed upon between the employer and the employee, the Government indicates that land use and livestock farming are not treated as payment in kind under the collective agreement for agricultural workers in Lower Austria that is currently in force, which meant that even if such payment in kind were present in an individual case, deductions may not be made for it from the cash wage.

Article 15(b) of Convention No. 95. Wage statements. In its previous comment, the Committee requested the Government to provide information on how it ensured that detailed wage statements were issued for workers who are not covered by the collective agreements providing for the issuance of such statements. The Committee takes note with interest of the entry into force on 1 January 2016 of the Labour Law Amendment Act of 2015 that establishes the mandatory issuance of detailed wage statements for all employees.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Articles 1 and 4 of the Convention. Minimum wage fixing machinery. System of supervision and sanctions. The Committee notes the introduction as from 1 January 2009 of a cross-sectoral minimum wage of €1,000 per month (payable 14 times a year) following an agreement to this effect by national social partner organizations reached in July 2007. The aim behind this minimum wage floor for all employees was to tackle the incidence of the “working poor”, contain pay inequalities, but also resist any statutory pay regulation. In addition, the Committee notes the adoption of the Wages and Prevention of Social Dumping Act of 28 April 2011, which introduced for the first time a mechanism of supervision of the payment of wages by all employers operating in the country, in particular through the obligation of employers to maintain wage records in the German language (for instance, employment contracts, wage slips and bank transfer notices) and the strengthening of monetary sanctions imposed in case of underpayment of wages and failure to keep payroll records. The Committee requests the Government to keep the Office informed of any further developments in minimum wage policy and the scope of minimum wage protection, especially in the context of the global economic and financial crisis. The Committee also requests the Government to refer to the comments concerning the application of the Minimum Wage Fixing Machinery (Agriculture) Convention, 1951 (No. 99).

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s explanations concerning atypical employment relations, such as those on the basis of work agreements (werkverträgen) and freelance agreements (freien dienstverträgen). According to the Government’s report, these forms of employment fall outside the scope of the labour legislation, and are therefore not covered by the Convention, because they also display aspects of entrepreneurship and the persons concerned are not in a dependent employment relationship. Recalling that the Convention seeks to ensure decent wage levels for the most vulnerable and low-paid categories of workers, and also recalling that the Convention requires full consultations with the social partners before deciding the trades which should be covered by minimum wage legislation, the Committee requests the Government to keep it informed of any future developments regarding the legal regulation of freelance contracts and contracts for work and services.

In addition, the Committee notes the information and attached documents provided by the Government, in particular, the statistical data on the wage sums recovered as a result of labour inspections, and the number of homeworkers, as well as the labour inspection reports showing the number of visits conducted and contraventions found. It would appreciate if the Government could continue to supply up to date information on these matters.

Finally, the Committee would be grateful if the Government could provide information on the percentage of workers covered at the national level by collective agreements within the meaning of Article 1, paragraph 1, of the Convention, the sectors covered, and the average rate of wages determined by these agreements.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the report provided by the Government. It would be grateful if it would provide with its next report, in addition to information on the activities of the labour inspectorate in the field of home work, information on the minimum wage rates applicable to homeworkers and if it would supply copies of the legislative or other texts fixing such minimum wages, in accordance with Article 5 of the Convention and Part V of the report form. The Committee also notes the Government’s statement that persons engaged in atypical forms of employment, such as employment on the basis of work agreements (werkverträgen) and free service agreements (freien dienstverträgen), are not covered by the definition of "employees" within the meaning of the legislation that is in force and that they are not therefore subject to the provisions of this Convention. The Committee is bound to recall in this respect that the Convention sets forth certain basic principles relating to the fixing of minimum wages, irrespective of the nature of the employment relationship. It also recalls that the fundamental objective of the Convention is to guarantee a decent level of remuneration for the most vulnerable categories of workers and it requests the Government to indicate the measures which have been taken or are envisaged, in accordance with the Convention, to extend the protection afforded in relation to minimum wages to the increasing number of workers not covered by a traditional employment relationship. Finally, the Committee would be grateful, so that it can assess the effectiveness of the minimum wage-fixing system through collective agreements, within the meaning of Article 1, paragraph 1, of the Convention, to be provided with information on the coverage rate of these agreements at the national level, the sectors covered and the average level of wages determined by such agreements.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes the information supplied in the Government's report in reply to its previous comments. It also notes the comments made by the Federal Chamber of Labour concerning wage determination in Austria.

Article 1 of the Convention, in conjunction with Article 5 and point V of the report form. The Committee notes the Government's statement that the minimum wage fixing system is applied -- and even without any restriction in relation to exceptionally low wages -- when, on the employers' side, there are no bodies with the competence to conclude collective agreements and thus none can be concluded (for example, caretakers, domestic workers and home helps, and also private tutors). According to the Government, the regulation orders to confer legal status make it possible -- if the legal requirements have been met -- to extend already existing collective agreements to workers whose employers belong to a body competent to conclude collective agreements but who, for whatever reason, have not concluded one; a legal exception being made in the case where the collective agreement is only concluded for a minority of employers in a branch.

The Committee also notes the statement of the Federal Chamber of Labour that Austrian minimum wage regulations also apply now to employers without the headquarter in Austria and that, by way of an instrument entitled "minimum wage rates", a minimum wage has been legally secured in other spheres in which, on the employers' side, there is no body with competence to conclude collective agreements (for example, social services). Moreover, as up until now the existing statutory instruments, such as minimum wage rates and the declaration of legal status, have been sufficient to supply the majority of new occupational sectors with legal provisions relating to wages. However, the Federal Chamber of Labour considers that -- as regards the increasing incidence of forms of occupation (like employment on the basis of work agreements (Werkverträgen), free service agreements (freien Dienst-verträgen)), etc. -- it is necessary to consider how legal minimum provisions can be established in respect of wages. In this connection, Article 1, paragraph 1, of the Convention provides for the creation and maintenance of methods or machinery for fixing minimum wages in industry or certain trades. The Committee recalls the indication, in its 1992 General Survey on minimum wages, that the establishment of methods or machinery that do not guarantee the effective regulation of minimum wages is not enough to comply with the obligations arising from the Convention.

The Committee, therefore, requests the Government to continue supplying information on the application of the Convention by means of legislation as well as in practice, with particular reference to the application of minimum wage standards to the above-mentioned forms of occupation.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

With reference to the comments made by the Federal Chamber of Labour concerning the effects of the withdrawal of negotiation mandates by employers for collective agreements on the fixing of minimum wage rates, the Committee requests the Government to indicate the consequences of this withdrawal on the fixing of minimum wages.

In its report, the Government gives the following indications: (i) the obligations deriving from Article 1 of the Convention are fulfilled in Austria through a system of the minimum wage awards by a conciliation board in industries in which a collective agreement cannot be concluded because of the absence of employers' organizations with the mandate to conclude such agreements; (ii) collective agreements are the normal method used in practice for the fixing of wages; (iii) a large number of collective agreements are concluded by representative bodies of employers, of which membership is compulsory for all the employers in a sector; (iv) the issue of persons who are not covered by agreements is negligible in Austria; and (v) in sectors in which there are bodies representing both employers and workers which are capable of concluding collective agreements, no minimum wage awards can be adopted by the Conciliation Board. The Government adds that only a strike or other trade union action could overcome the unwillingness of employers to enter into negotiation for a collective agreement.

The Committee notes these statements. It recalls the explanations provided in paragraph 62 of its 1992 General Survey on Minimum Wages, according to which the creation or maintenance of methods for fixing minimum wages is not enough to comply with the obligations arising from the Convention, but it is also necessary to use these methods for the effective regulation of minimum wages.

In this respect, the Committee notes with interest the Government's statement that the law lays down that in sectors in which there are organizations of employers and workers capable of negotiating collectively, but where the employers do not wish to conclude collective agreements, a statement can be issued converting a collective agreement from one sector into a binding agreement for another sector. The Committee requests the Government to supply information on the use of the procedure of such declarations by the Central Conciliation Office in sectors where the employers have withdrawn their mandate to collectively negotiate the fixing of minimum wages.

Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

The Committee notes the report, which was not requested, transmitted by the Government.

In its previous comments, the Committee referred to the comments made by the Federal Chamber of Labour concerning the effects of the withdrawal of negotiation mandates by employers for collective agreements on the fixing of minimum wage rates. It requested the Government to supply information on the use by the Central Conciliation Office of the procedure by which a collective agreement is declared as having the effect of a binding statutory instrument in sectors where the employers have withdrawn their mandate to negotiate collectively the fixing of minimum wages.

The Committee notes the Government's statement that the issue of the withdrawal of negotiation mandates for collective agreements is not covered by Convention No. 26. The Committee recalls that its comments concerned the consequences of the withdrawal of negotiation mandates for collective agreements on the application of the Convention, which provides for the use of minimum wage-fixing machinery freely decided upon by each State bound by this instrument, whereby minimum rates of wages can be fixed in practice.

The Committee also notes the explanations concerning the above procedure, a subsidiary instrument the principal objective of which is to protect and/or supplement the system of collective agreements. The procedure is used three or four times a year, including its "traditional" purpose of extending a collective agreement to employers which have not signed the agreement or do not belong to the signatory organization. It notes the Government's statement that the machinery for the fixing of minimum wages is very effective in Austria and that the level of coverage by collective agreements is around 98 per cent according to the OECD.

The Committee requests the Government to continue supplying information on the use of the above procedure in cases other than the "traditional" cases of the extension of agreements referred to by the Government.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

Referring to the comments made by the Federal Chamber of Labour concerning the effects of employers' withdrawing negotiating mandates for collective agreements on the fixing of minimum wage rates, the Government describes in its report the methods of wage fixation for four different groups of workers. The Government states that the regulation of terms of employment and remuneration by collective agreement is not the subject of the Convention.

The Committee takes due note of these indications. It, however, recalls again the obligation for the ratifying State, under Article 1 of the Convention, to create or maintain minimum wage-fixing machinery for workers employed in certain of the trades or part of trades in which two conditions are fulfilled, namely: (i) the absence of arrangements for the effective regulation of wages by collective agreement or otherwise; and (ii) the existence of exceptionally low wages. Therefore, if the withdrawal of negotiating mandates of employers may result in the absence of wage regulation by collective agreement, it should be examined whether the wages are exceptionally low in the trade concerned in order to determine the necessity of the minimum wage-fixing machinery for that trade. The Committee would be grateful if the Government would indicate the consequences of the withdrawal of negotiating mandates of employers in this respect.

[The Government is asked to report in detail for the period ending 30 June 1994.]

Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes the information given in the Government's report. It further notes the comments made by the Federal Chamber of Labour expressing its concern over the increasing tendency of employers to reduce the scope of collective agreements by withdrawing negotiating mandates and thus increasing the possible use of statutory collective agreements.

The Committee recalls the obligation, according to Article 1 of the Convention, to create or maintain machinery whereby minimum rates of wages can be fixed for workers employed in certain of the trades or parts of trades in which no arrangements exist for the effective regulation of wages by collective agreement or otherwise and wages are exceptionally low. It requests the Government to supply information on the consequences of the withdrawal of negotiating mandates of employers on the fixing of minimum rates of wages.