Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the key players and institutions and their role in Austria.
Public authorities involved in regulating working life
With regard to industrial relations and working conditions, the two most important public authorities are the Federal Ministry of Social Affairs, Health, Care and Consumer Protection (Bundesministerium für Soziales, Gesundheit, Pflege und Konsumentenschutz , BMSGPK) and, in particular, the Federal Ministry of Labour and Economy (Bundesministerium für Arbeit und Wirtschaft,BMAW). The merging of the agendas for labour and the economy in the latter took place in May 2022, and was triggered by the resignation of a minister and the reorganisation of the distribution of responsibilities of the ministries. The merger was strongly criticised by organised labour, fearing that the interests of employees would be neglected (the agendas for labour and the economy had been merged in a single ministry before, by the conservative–populist government between 2000 and 2006). The BMAW’s range of activities include, among others, implementing economic policy and parts of employment policy. It is also responsible for supervising the Public Employment Service (Arbeitsmarktservice , AMS), and hence unemployment insurance, and for organising the Labour Inspectorate (Arbeitsinspektorat); it is also responsible for labour law. The Federal Arbitration Board (Bundeseinigungsamt , BEA), a joint body established within the BMAW, has a decisive role in Austria’s industrial relations system in that it has the right to recognise voluntary collective interest organisations as collective bargaining parties (or to revoke this recognition). This body thus facilitates social dialogue. The BMSGPK is responsible for general social policy and for policy relating to people with disabilities, care provision and welfare benefits. The AMS, which is a public service agency with a separate legal personality, is responsible for job placement and the provision of advisory services to jobseekers and employers regarding supply and demand in the labour market. The Labour Inspectorate forms part of the BMAW and monitors employment conditions, including health and safety at work. The AMS, the BEA and the Labour Inspectorate are all under the responsibility of the BMAW and can likewise be considered public authorities of importance for Austria’s industrial relations system. With regard to individual labour disputes, labour and social security courts (at three instances) are competent to rule on all disputes arising from labour law and all benefit claims arising from social security law, whereas disputes concerning social insurance are referred to administrative authorities under the aegis of the BMSGPK.
Representativeness
There is no explicit concept of representativeness applying to collective interest organisations representing workers and businesses in Austria. However, in relation to the capacity of voluntary organisations to conclude collective agreements, the ArbVG identifies some general preconditions a voluntary collective interest organisation has to meet: (financial) independence (in particular, it must be independent of the other side of industry); extensive occupational and territorial coverage in terms of membership domain, which means that it must be operative above company level at least; and major economic importance in terms of the absolute number of members and business activities in order to be in a position to wield effective bargaining power. Representativeness is linked to the capacity of collective interest organisations to conclude collective agreements (the right to conclude collective agreements is conferred by the BEA) and hence to their recognition as relevant social partner organisations.
Trade unions
About trade union representation
Austrian constitutional law protects the right to organise in the context of general freedom of association (Vereinsfreiheit), guaranteed to all citizens by Article 12 of the 1867 Basic Law (Staatsgrundgesetz). Constitutional law also guarantees the right to form associations for the protection of employment-related interests in accordance with the Associations Act (Vereinsgesetz), which gives practical effect to the principle of freedom of association. Moreover, the right to organise is guaranteed as an independent basic right in Article 11(1) of the 1950 European Convention on Human Rights, which forms part of constitutional law in Austria. As a consequence, individuals in Austria have the right to join trade unions and engage in their activities. No category of workers or sectors is excluded from this right.
Trade union density has been declining since the 1960s in Austria. This trend is mainly due to the long-term structural transformation of the economy and employment. In the strongholds of unionisation – namely in manufacturing and the public sector – employment has declined, to the benefit of the private sector, which tends to record low union density rates, especially among women, white-collar workers and atypical workers. In the 2000s, this trend accelerated, especially in the wake of the revelation of the involvement of the Austrian Trade Union Federation ( Österreichischer Gewerkschaftsbund, ÖGB) in a financial debacle concerning its former bank BAWAG PSK. Between 2016 and 2019, however, an increase in membership was recorded, which could be attributed to a comparatively large increase in membership of the Public Services Union (Gewerkschaft Öffentlicher Dienst, GÖD). This trend was reversed again with the onset of the COVID-19 pandemic, with the union losing around 20,000 members between 2019 and 2021. The involvement of trade unions in public policymaking is highly institutionalised in Austria in that the ÖGB and its seven affiliates participate in a number of bodies and committees, albeit on an informal rather than a formal (legal) basis. Thus, they do not perform sovereign tasks such as the administration of pensions or unemployment schemes. ‘Yellow unions’ (unions that have been established by a government or employer, or are dominated or heavily influenced by an employer) are not an issue at all in Austria, due to the strict procedure governing recognition of interest organisations as social partners possessing the capacity to conclude collective agreements.
Trade union membership and trade union density, 2011–2019
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
Trade union density in terms of active employees (%) * | 28.3 | 28.0 | 27.8 | 27.7 | 27.4 | 26.9 | 26.7 | 26.3 | 26.3 |
Trade union membership (thousands)** | 995 | 993 | 989 | 988 | 987 | 991 | 995 | 999 | 1,004 |
Notes : * Proportion of employees who are members of a trade union. ** Trade (labour) union membership of employees derived from the total union membership and adjusted, if necessary, for trade union members outside the active, dependent and employed labour force (i.e. retired workers, self-employed workers, students, unemployed people).
Source : Organisation for Economic Co-operation and Development/Amsterdam Institute for Advanced Labour Studies Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts database 2021 (OECD/AIAS ICTWSS database)
Main trade union confederations and federations
In Austria, there is only one trade union federation: the ÖGB.
Main trade union federation
Name | Abbreviation | Number of members as of 31 December 2022 | Involved in collective bargaining? |
Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund) | ÖGB | 1,199,856 | Yes (in general through its affiliated unions) |
In the 2000s, the Austrian trade unions were increasingly confronted by the need to merge due to a combination of factors – in particular, membership decline and financial weakness, especially in the wake of the revelation of the ÖGB’s involvement in the financial debacle concerning BAWAG PSK. As a consequence of the BAWAG crisis, the ÖGB was forced to sell all of its shares in the bank in 2006. Since then, the only source of revenue for the ÖGB and its member unions has been the dues paid by union members. With the latest restructuring and merging processes, Austria’s trade union structure under the umbrella of the ÖGB was significantly streamlined, compared with the late 1990s. Within a 10-year period, the number of trade unions affiliated to the ÖGB was reduced from 14 to 7. Since 2009, no notable developments have occurred.
Employer organisations
About employer representation
There are two main cross-industry employer organisations in Austria: the Austrian Federal Economic Chamber (Wirtschaftskammer Österreich, WKÖ), membership of which is mandatory, and the Federation of Austrian Industries (Industriellenvereinigung, IV), membership of which is voluntary. The IV organises large enterprises mostly in the manufacturing industry. All companies and entrepreneurs holding a business licence must register with the WKÖ (and its corresponding subunits), which is organised into geographical subdivisions (provinces, known as Länder) and sectoral sections, which are further subdivided into sectoral subunits. Companies holding more than one business licence are to register with all corresponding WKÖ sectoral groups. As many employers hold more than one business licence, there are more members than companies associated with the WKÖ.
For the IV and all other (sectoral) employer organisations for which membership is voluntary, the principle of general freedom of association, as outlined in the section ‘About trade union representation’ in the context of trade unions, applies.
As membership of the WKÖ and its subunits is compulsory for all of Austria’s companies (except those in agriculture, the liberal professions and the non-trading public sector), the density of the WKÖ in terms of both companies and employees is 100%. No information is available on the IV’s membership density.
Employer organisations – membership and density, 2012–2019
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Source |
Employer organisation density in terms of active employees* | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | Economic Chamber Act (Wirtschaftskammergesetz) |
Employer organisation density in the private sector** | n.a. | 68% | n.a. | n.a. | n.a. | n.a. | n.a. | 59% | European Company Survey 2019 |
Notes: *Values are 100% because all enterprises in the private sector (exceptin agriculture and the liberal professions)must be members of the WKÖ. **Percentage of employees working in an establishmentthat is a member of any employer organisation that is involved in collective bargaining.n.a., not available.
Main employer organisations
Apart from the WKÖ, the IV is the most important employer organisation in Austria. Its membership domain encompasses manufacturing, managerial staff in the manufacturing industry and enterprises associated with the manufacturing industry.
Main employer organisations and federations
Name | Abbreviation | Members as of 31 December 2022 | Involved in collective bargaining? |
Austrian Federal Economic Chamber (Wirtschaftskammer Österreich) | WKÖ | 698,671 total members (active and passive) 576,063 active members | Yes (in general through its subunits) |
Industriellenvereinigung (Federation of Austrian Industries) | IV | More than 4,500 | No (waives its right to conclude agreements) |
Tripartite and bipartite bodies and concertation
As far as general economic and social matters are concerned, national tripartite policy concertation is most strongly formally institutionalised in the Parity Commission (Paritätische Kommission). This commission originally consisted of high-level representatives of the government and the four major social partner organisations. The commission ran four subcommittees: the Advisory Council for Economic and Social Affairs (Beirat für Wirtschafts- und Sozialfragen), the Subcommittee on International Issues (Unterausschuss für Internationale Fragen), the Subcommittee on Wages (Lohnunterausschuss) and the Subcommittee on Competition and Prices (Wettbewerbs- und Preisunterausschuss). Since the Bad Ischl Declaration was signed by the social partners in 2006, the Parity Commission has had only one subcommittee: the Advisory Council for Economic and Social Affairs. The Parity Commission was the focal point for tripartite social dialogue, where matters of particular significance, common strategies and concerted action, and emerging conflicts were discussed and the recommendations of the advisory council were considered. However, the commission’s role has diminished since Austria’s accession to the European Union in 1995, and it last convened in 1998.
Social partner consultation in Austria is based on a practice of permanent, but informal, cooperation, rather than on legal regulations. The tripartite dialogue is extensive, and deals with a variety of issues across all economic sectors. Social dialogue is strongly developed and highly influential on policymaking.
Apart from the Parity Commission, a series of national and regional employment pacts (referred to as Territorial Employment Pacts (TEPs)) have been set up by the (regional) government(s) in close cooperation with the national and regional social partners to implement tailor-made employment policies at national and regional levels. The social partners’ participation in government employment policies is most strongly institutionalised in the AMS (whose supervisory board has representatives of both the government and social partners); the AMS is the core instrument for realising labour market goals at national and regional levels. Moreover, the social partners are represented in the social insurance institutions, the BEA and numerous other bodies.
In terms of bipartite concertation, there is a long tradition of voluntary, informal cooperation and bargaining between the social partners at both national and sectoral levels, rather than formalised bipartite bodies.
Main tripartite and bipartite bodies
Name | Type | Level | Issues covered |
Public Employment Service (Arbeitsmarktservice Österreich, AMS) | Tripartite | National | Job placement, provision of advisory services to jobseekers and employers, realisation of labour market goals |
Umbrella Association of Social Security Institutions (Dachverband der Sozialversicherungs-träger) | Tripartite | National | Representation and coordination of the five social insurance institutions, covering health, accident and pensions insurance |
Workplace-level employee representation
Works councils (Betriebsräte) are the only bodies in the private sector representing employees at workplace level. In legal terms, a works council is a body that can be set up within establishments consistently employing five or more workers. It exercises workplace-level consultation and co-determination rights conferred by law on the workforce as a whole. Works councils can either be established separately for blue-collar workers and white-collar workers, or represent both categories. A works council is elected by the workforce – essentially by all employees within the establishment aged 16 years or over (the minimum age decreased from 18 to 16 years in 2021) – for a term of five years. This applies to all works councils established from 2017 onwards; the former term of four years applies to works councils existing before that date. The works council is elected on the basis of proportional representation, with the number of council members determined by the size of the workforce. With regard to the works council’s information, consultation and co-determination rights, the employer is required to hold regular discussions with the council and keep it informed on matters that are relevant to the workforce. The most important instrument for the works council’s expression of its co-determination rights over a specific range of social matters is the conclusion of a works agreement (Betriebsvereinbarung) between management and the works council.
In the public sector, a series of special rules exist regarding employee representation bodies (Personalvertretung) for each of the major employers – that is, the federal government, provincial governments (Länder), local governments and public enterprises. The rules are set by particular legal provisions. These bodies broadly correspond to works councils in the private sector.
Regulation, composition and competences of the representative body
Body | Regulation | Composition | Competences | Thresholds for/rules on when the body needs to be/can be set up |
Works council (Betriebsrat) | Codified in the ArbVG | Representatives of the establishment’s workforce (number is contingent on the size of the workforce) | Consultation and co-determination; conclusion of a works agreement with management on social matters (not on pay issues) | Workforce must have at least five employees |