Social Partnership

The so-called "Social Partnership" is a system of economic and social co-operation between the associations representing the interests of employers and employees amongst each other and with the representatives of the government. This system makes Austria unique in the whole world. It plays a decisive role in settling industrial and social conflicts, as it ensures co-determination above enterprise level.

Associations representing the interest of employers are the Federal Chamber of Commerce (WKOe) and the Committee of the Presidents of the Austrian Chambers of Agriculture (LWK), representatives of employees, on the other hand, are the Austrian Federation of Trade Unions (OeGB) and the Federal Chamber of Labour(BAK).

The co-operation between the partners is based on the principle that it is voluntary and carried out in an informal way. The general idea of the system is that the basic aims of economic and social policy are recognised by all partners and can be better realised through co-operation and co-ordinated action rather than through confrontational means such as strikes.

The Parity Commission

The Parity Commission for Wage and Price Issues, which was founded in 1957, is the main area of communication between the government and the Social Partners.

The Federal Chancellor is chairperson of the Commission, and the Commission members are the top representatives of the four Social Partner Associations as well as Federal Ministers responsible for economic and social affairs.

Discussions on economic strategies and measures, on the realisation of collective recommendations by the Social Partners, as well as on conflicts, which emerge, are held here. All resolutions of the Parity Commission must be adopted unanimously. The government may mediate on behalf of either side but has no decision-making power. Decisions concerning specific problems may only be made by the unions and employers' associations. The decisions are not, however, legally binding as they are based on the principle of voluntary co-operation.

Common aims of the Social Partners

It is an obvious fact that a healthy Social Partnership can only be considered as such if it has mutual aims and a special culture of dealing with conflicts.

The common aims and tasks of the Social Partners are:

• solving conflicts between employers and employees through negotiations
• increasing the general welfare
• stabilising the political set-up
• maintaining international competitiveness
• wage policy through collective bargaining
• administrative duties above enterprise level
• information, advice and assistance for employers and employees

The Social Partnership does not deny conflicts of interests; it is a model, which aims at mutual problem solving and balancing interests through achieving mutual strategies and through its readiness to find a consensus. Social Partnership helps to avoid uncertainties and contributes to a much better assessment and stabilising of political and economic factors.

In Austria the term Social Partners is very often associated with prosperity and social security. For about forty-five years co-operation between both sides of industry has maintained peace to a great extent and is thus a positive factor in competition for industrial locations.