Employment and Industrial Relations in the Hotels and

Restaurants Sector
Employment and Industrial Relations in the Hotels and Restaurants Sector
Observatory: EurWORK | Topic: | Collective bargaining, | Health and well-being at work, | Migration and mobility, | Skills and training, |
Industrial relations,.
Published on: 23 April 2012.

Disclaimer: This information is made available as a service to the public but has not been edited by the European
Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

Employment in the hotels and restaurants sector in Austria is characterised by a high share of female employees,
a low average age of workers and a high incidence of migrant workers. The disproportionately large share of
women is reflected by a comparatively high share of part-time work. Employment as such is marked by a high
degree of instability and fluctuation, short duration of employment and a large risk of unemployment. For these
reasons, employers have difficulties in recruiting qualified personnel and apprentices. Furthermore, more than
two thirds of young workers leave the sector five years after having entered the sector. Some initiatives targeted
towards skill development and attracting young workers to the sector have been implemented; however, in order
to attract more apprentices and better qualified personnel, working conditions and pay are to be improved.

1. Key developments and trends in the Hotels and Restaurants: trends,

employment and working conditions

1.1 Please provide information on key trends in Hotels and Restaurants

A brief description of any significant shifts within the last four years affecting the Hotels and Restaurants sector,
for example:

The impact of the crisis on the sector

Main drivers of change
If there are specific developments affecting the following subsectors in terms of economic activity
and employment, please add the information according to the following classification:
Hotels and other short stay accommodations
Restaurants, bars and cafes
Catering and canteens
Austria is often labelled as a tourism country and its economy relies heavily on the hotels and restaurants sector
which has been booming in the last years. Tourism, which encompasses the hotels and restaurants sector, is
thus an important driving force for jobs and a major growth driver. Employment has been continually rising, as
well as turnover and overnight stays. The number of employees in the hotels and restaurants sector increased
about 30,000 workers within the last decade (from 150,000 to 180,000, without marginal employment; data
provided by the Main Association of Social Security Providers, Hauptverband in short). The impact of the crisis
on the sector was not as severe as initially feared. The number of overnight stays in 2009 declined by 1.9
percentage points (among foreign guests, it declined by 3.2 percentage points, whereas among domestic guests,
it increased by 1.7 percentage points) as compared to 2008. In 2010, overnight stays increased again as
compared to 2009 by 0.5 percentage points, making it a total of 124.9 million overnight stays (data provided by
Statistics Austria). Specifically the upmarket hotel industry has been growing steadily within the last few years,
with regards to the number of companies, beds, overnight stays, arrivals and occupancy rates. As far as
employment goes, some 180.964 persons were working in the sector on average in 2010 (without marginal
employment relationships). This is an increase of almost 4.200 persons or 2.4 percentage points as compared to
the crisis year 2009 (Hauptverband). In 2009, the decline in employment amounted to only 0.4 percentage
points as compared to 2008. According to the Institute of Advanced Studies (Institut fr hhere Studien, IHS),
even 405.000 persons were working in the sector for at least one day in the course of 2010. Including marginal
employment relationships which are frequent in the sector, employment was at 255,500 workers on average in
2009 (Statistik Austria). With regards to unemployment during the crisis, some 3.800 additional persons were
unemployed in the sector during 2009, which marks an increase of 13.2 percentage points. However, over all
sectors, the increase of unemployed workers amounted to 22.6 percentage points. Unemployment in the hotels
and restaurants sector, however, is traditionally comparatively high in Austria. This has to do with the fact that
due to seasonal work, employees in the sector are on average only employed seven out of twelve months per
year. At the same time, there is a profound labour shortage in the whole tourism sector in Austria. The director of
Austrias Public Employment Service (Arbeitsmarktservice sterreich, AMS), Mr Johannes Kopf, has stated that
a bundle of measures is needed in order to fight that phenomenon: (further) education/qualification/training;
prolongation of working lives/of work during the life course; increasing female employment participation via
increasing the number and improving the quality/availability of childcare; and targeted promotion of immigration.
According to experts and social partner representatives, the opening of the labour market for workers from eight
NMS on 1 May 2011 will not have a big impact on the employment situation in the sector due to the de-facto
opening of the sector via seasonal work permit contingents. If the need arises, employers are thus in favour of
employing third country workers, whereas the trade unions favour a more restrictive handling of work permits for
persons from non-EU countries. Furthermore, there is a problem of recruiting young employees and apprentices
in the sector. While there are 1,500 apprenticeship places available in the hotels and restaurants sector, only 500
young people are seeking for an apprenticeship place in the sector. Employers state that it is difficult to find
motivated, qualified and mobile employees. Trade unions, on the other hand, state that the sector is highly
unattractive for employees due to the small wages and overlong/irregular working times.

1.2. Please provide information on the views of the major social partner organisations
(trade unions and employer organisations) on trends and changes in the Hotels and
Restaurants sector.
Representatives of the two trade unions engaged in the sector, vida and GPA-djp, see several problems in the
hotels and restaurants sector: Firstly, they state that employment in the sector is not attractive for young workers,
which thus causes a decline in youth employment and apprenticeship trainings. Moreover, it is stated that the
unattractiveness of the sector for employees has to do with long working hours and comparatively little income,
and that breaches of normal (legal) working hours take place regularly on behalf of the employers, including non-
compliance with breaks and rest periods. Organised labour furthermore states that a main problem of the sector
is undeclared work. According to a trade union representative, it is common practice not to declare a part of the
wages, which is naturally a disadvantage for workers in that the undeclared part does not count towards
unemployment and pension benefits. A further problem identified is that even though the need for qualified
personnel is on the rise, employers are hardly ever ready to provide their employees with qualification/training or
give them time off/financial support in order to take part in those education measures. The share of qualified
personnel has been decreasing, whereas the share of unskilled workers has increased. This can be seen e.g. by
the nowadays more widespread provision of buffet meals, instead of high-quality service and consultancy of
customers and guests on food choices, according to a vida representative. The subsector of fast-food chain
gastronomy, catering and event catering has grown lately and is expected to grow further, as argued by
organised labour.
Organised business sees the difficulties of recruiting young workers as a major problem in the sector. Especially
the Austrian Hotel Association (sterreichische Hotelvereinigung, HV), which represents first and foremost the
upmarket hotel sector, experiences a great need for qualified personnel. It thus favours compulsory education
and/or training for young persons up to the age of 18 years. As of now, compulsory schooling ends at the age of
15, or, rather, after nine school years. Organised business in general welcomes the opening of the Austrian
labour market for workers from eight NMS due to the reduction of bureaucratic hurdles. However, it is expected
that the opening of the labour market will hardly be noticeable due to the quasi-opening of the labour market via
the contingents of seasonal workers which had been in place for years. Both mandatory employer organisations
for the hotels and restaurants sector, which are members of the Federal Economic Chamber (Wirtschaftskammer
sterreich, WKO), the Association of Restaurants (Fachverband Gastronomie, FVG) and the Association of
Hotels (Fachverband Hotellerie, FVH), regret that increased flexiblisation of working time has not been agreed
upon by the trade unions. Organised business is calling for an extension of the reference period during which the
normal working hours can be extended. Currently, the reference period lies at 13 weeks.

1.3 Please provide the absolute number and shares of employment for the following
indicators for the NACE code I (Accommodation and food service activities) in 2010 (if
not available the most recent year with data available)
Share of employment of the HORECA sector as compared to the national economy

Share of employment in the HORECA sector

National economy HORECA (NACE I)

100% 6.27%

Source: Statistik Austria, Arbeitskrfteerhebung 2009, Ergebnisse des Mikrozensus; average data for 2009;
percentage based on own calculations

Total employment in the sector and percentage of employees, employers, self employed and family
workers

Total employment in the HORECA sector

Incl. percentage of employees/employers/self employed/family workers

Self-employed
Family
Total employment Employees (without family Companies
workers
workers)

3,532,300 457,700 87,700

National
4,077,700 298,379
economy
86.6% 11.2% 2.2%

213,900 36,300 5,300

HORECA
(NACE I)
255,500 44,984
83.7% 14.2% 2.1%

Source: Statistik Austria, Arbeitskrfteerhebung 2009, Ergebnisse des Mikrozensus; average data for 2009;
percentage based on own calculations; Company data: Statistik Austria, Leistungs- und Strukturstatistik 2009
(national economy encompasses NACE areas B-F, G-N (without K) and S95)

Number and share of temporary employees

Data about temporary employees not available according to NACE demarcation

Number and share of workers in part time employment

Part-time employment

Percentage (of part-time work within the

Total employment Part-time work
national economy/ sector)

National economy 4,077,700 1,022,800 24.6%

HORECA (NACE I) 255,500 80,900 31.7%

Source: Statistik Austria, Arbeitskrfteerhebung 2009, Ergebnisse des Mikrozensus; average data for 2009;
percentage based on own calculations

Number and share of female workers in employment

Female employment

Percentage (of female employment

Total employment Female employment
within the national economy/ sector)

National economy 4,077,700 1,892,100 46.4%

HORECA (NACE
I)
255,500 159,500 62.4%

Source: Statistik Austria, Arbeitskrfteerhebung 2009, Ergebnisse des Mikrozensus; average data for 2009;
percentage based on own calculations

Number and share of foreign workers in employment

Foreign workers in employment

Table Summary - Required

Total Former Other % of

Non-
employ- Austria EU-27 YUG w/o Turkey foreign foreign
Austria
ment Slovenia countries workers

National
4,108,100 3,457,000 651,200 233,900 223,200 88,300 105,800 15.9%
economy

HORECA
(NACE I)
247,000 175,600 71,500 18,100 21,800 11,400 20,200 28.9%

Source: Statistik Austria, Arbeits- und Lebenssituation von Migranten und Migrantinnen 2008, Modul der
Arbeitskrfteerhebung 2008; average data for 2008; percentage based on own calculations; NOTE: Country data
as provided are countries of birth
1.4 With regard to the following employment and working conditions, could you provide
relevant information on the main issues and developments since 2006
The aim is to provide a general picture of the key issues with regard employment and working conditions in the
Hotels and Restaurants sector in your country

Undeclared work

By international comparison, the share of undeclared work is comparatively small in Austria. With a share of 8%
of the GDP in 2011, Austria ranks third among the OECD countries behind the United States of America and
Switzerland (cf. Schneider 2011). Since 2003, undeclared work has been continually decreasing with the
exception of the economic crisis, when it was on the rise again. Overall, the decrease of the shadow economy
between 2003 and 2011 amounts to 2.8 percentage points (cf. press release by the German Institute for Applied
Economic Research). Service companies, among which are hotels and restaurants, hold a share of 16% of the
overall shadow economy, with the construction industry marking the biggest share with 39%. Undeclared work is,
thus, a problem in the hotels and restaurants sector. In order to fight the shadow economy, a law was
implemented by the Austrian government at the beginning of 2008, following a social partner agreement in April
2007. Under the stipulations of the law which applies to the whole economy, the employer is obliged to register
workers at social security institutions before the beginning of employment; before the enactment of the law, a
seven-day transitional period was granted. No data are available as to whether the implementation of the law did
have a specific impact on the development of the shadow economy in Austria.

Youth employment and conditions for young people in the sector

Recruitment of young workers and apprentices in the sector has become problematic for employers due to the
perceived unattractiveness of the sector by employees (e.g. little pay, long working hours, bad working
conditions, stress). The retention of young employees in the sector has also proven to be difficult: Many young
people who have received qualification in the hotels and restaurants sector leave the sector after few years (e.g.
every second graduate of hotel management schools works in the sector for only three years, according to data
provided by the HV). With the soon to be expected implementation of a new apprenticeship in the sector, it is
hoped to increase its attractiveness. Tripartite negotiations about this new profession in hotel management have
been ongoing for five years; the profession includes for example the work of receptionists at hotel lobbies.
Organised business, especially the HV, has been pushing for the implementation of this new apprenticeship.

Seasonal work and working hours

Seasonal work plays a major role in the Austrian hotels and restaurants sector, which has increasingly attracted
workers from abroad. When there is temporary additional need for workforce which cannot be met with domestic
workers, the Federal Ministry of Labour, Social Affairs and Consumer Protection (Bundesministerium fr Arbeit,
Soziales und Konsumentenschutz, BMASK) can issue a decree on contingents for fixed-term, temporary workers
and harvesters. The contingents are dependent on labour market figures and can only be issued if the AMS is
not able to fill the open jobs with domestic registered unemployed persons or workers already integrated in the
Austrian labour market. Such decrees are regularly issued in the tourism and in the agriculture and forestry
sectors. There are separate annual contingents in the tourism sector for the winter and the summer seasons. In
2010, for example, the contingent of seasonal workers for the summer was 4,117 workers, for the winter season
it was issued for 6,320 workers. The duration of those work permits is generally limited to six months. A seasonal
worker can be employed for up to twelve months out of this contingent within a 14-month period. Different rules
apply to harvesters and seasonal workers in the agriculture and forestry sector. Seasonal workers from Bulgaria
and Romania (workers from those countries will be able to enter the Austrian labour market without restrictions
from 2013 onwards) and asylum seekers are to be treated favourably, i.e. they are given preference with regards
to work permits out of the contingent. Apart from these contingents, a specific new regulation on permanent
seasonal workers was recently concluded between the social partners (WKO and vida), the so-called permanent
seasonal workers contingent. All foreign workers who have worked as seasonal workers in the Austrian tourism
sector at least 120 days per calendar year between 2006 and 2010 are eligible for that contingent if they register
with the AMS by 30 April 2012. Those permanent seasonal workers who have registered will receive a work
permit of up to six months (continuously) without the need for a labour market test. Multiple work permits per
calendar year and sector are permitted, however, the total duration of all granted employment times must not
exceed ten months within a calendar year. Due to the implementation of this regulation and the opening of the
Austrian labour market for workers from eight central and Eastern European NMS (Hungary, Poland, Czech
Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania) in May 2011, the (above mentioned) third-country
contingents will be much smaller this year (and most likely the coming years, as well). The decree on the these
contingents are to be issued only when first experiences with the opening of the labour market have been made
and is expected to lie within a range of between 1,300 and 1,500 workers. Employers fear that the comparatively
small third-country contingent will cause a labour shortage especially in unskilled, unqualified positions, which
unemployed people in Austria will not be available for (e.g. dishwashing). The opening of the Austrian labour
market is expected to have the biggest impact on the construction industry, tourism (with the hotels and
restaurants sector) and agriculture. However, as a total of about 25,000 additional workers per year are forecast,
the impact on the labour market on a whole, as well as on the hotels and restaurants industries is expected to be
minor. Currently, about 30% of all employees in the sector are migrant workers (Germany, former Yugoslavian
countries, Turkey).

With regards to working hours in the hotels and restaurants sector, it is characterised by comparatively long
hours (including part-time work, 35.3 hours a week as opposed to 32.9 hours in the whole economy, Statistik
Austria 2010). Furthermore, regular evening, night, weekend and shift work are typical for the sector (38.2% of
the employees in the sector work evenings regularly, 20.2% work nights regularly, 52.7% work Sundays regularly
and 33.6% work shifts on a regular basis) (cf. ibid.).

Qualifications and Skills development

Data by Statistics Austria on participation in further training/education for 2009 show that while over the whole
economy, the share of employed persons taking part lies at 7.3%, it is well below the average in the HORECA
sector, with only 2.5% participation. However, the need for qualified employees is emphasised by employers;
organised labour, on the other hand, complains that there is no support for employees interested in receiving
further training.

Health and safety

With the implementation of new legislation on tobacco in the hotels and restaurants sector in 2009, a collective
agreement protecting workers from passive smoke was concluded (see below). A special analysis of the
representative Austrian Working Climate Survey (Arbeitsklimaindex), which measures the subjective satisfaction
with working life (continuously since 1997 in quarterly intervals) for the tourism industry shows that only 31% of
all employees in the sector are satisfied with their working hours (as compared to 39% in the other sectors, cf.
Biehl et al. 2011: 103). Furthermore, employees in the sector complain about high levels of stress, limited
prospects of promotion and comparatively low wages (cf. ibid.).

Others
n/a

2. Industrial relations structures in the sector

2.1 Please provide details on the structure of trade union representation in the hotels
and restaurants sector.
The name of each relevant trade union active at national level in the sector and their overall number
of members within the sector.
Total number of members of trade unions in the sector, the membership share (%) among the
employees in the sector (e.g. 20% of employees in the sectors are members of trade unions), which
occupations and which employees according to company size are typically covered.

There are two trade unions which are active in the hotels and restaurants sector: the vida trade union and the
Union of Salaried Employees, Graphical Workers and Journalists (Gewerkschaft der Privatangestellten Druck
Journalismus - Papier, GPA-djp). Both are affiliated to the Austrian Trade Union Federation (sterreichischer
Gewerkschaftsbund, GB). The GPA-djp union represents all white-collar employees in the private economy,
and thus all white-collar workers in the hotels and restaurants sector, whereas the vida trade union generally
represents all blue-collar workers in the sector. However, representatives from both unions stated that while the
GPA-djp also in practice represents only white-collar workers in the sector, the vida trade union occasionally also
represents them; thus, there are some occurrences of dual membership and competition for members with
regards to white-collar employees. The share of white-collar employees in the sector lies at about 20%, thus the
majority of workers (80%) are blue-collar workers. The vida trade union represents about 9,300 workers in the
sector (out of a membership potential of 150,000) and has a domain density rate of 6.2%. The GPA-djp
represents about 2,000 members in the sector (out of a membership potential of about 22,000) and has a domain
density rate of about 8.9%. Overall, the sector has about 11,300 members and a sectoral density rate of about
6.6%. No further information on trade union membership according to company size is available.

2.2 Please provide information on the structure of employer organisations in the hotels
and restaurants sector.
The name of each relevant employer organisation active in the sector at national level, overall
number of members in terms of companies and number of employees working in member
companies.
The total number of companies members of employers organisations in the sector (if available), the
membership share (%) among all the companies, excluded companies with no employees and the
self employed (e.g. 30% of companies in the sector are members of employers organisations) and
breakdown by company size: micro companies 1-9 employees, small size companies 10-49
employees, medium size companies 50-249 and more than 250 employees, excluded companies
with no employees and the self employed (e.g. 20% of companies between 1 and 9 employees are
members of employers organisations in the country)
Are self-employees in the sector organised? If so, please develop on the key aspects (nature,
coverage, role in collective bargaining).

There are two main employer organisations active in the hotels and restaurants sector, which are both subunits
of the Federal Economic Chamber (WKO): the federal sectoral subunit gastronomy (FVG) and the federal
sectoral subunit hotel industry (FVH). Both are members of WKOs federal sectoral section tourism and leisure
industry (Bundessparte Tourismus und Freizeitwirtschaft, BSTF). Membership for the WKO and its relevant
subunits is mandatory for all employers (including the self-employed carrying a business licence), thus the
density rates lie at 100%. No further differentiation as to numbers of members with regards to company size is
available. The FVG has about 57,000 member companies with 129,000 employees (including those in marginal
employment relationships). The FVH has 17,800 members (active and passive business licence holders) with
about 104,200 employees (data from 2008). A distinction is made whether a hotel, inn or restaurant with
accommodation belongs to the FVG or FVH: All those businesses providing up to eight beds belong to the FVG;
those with more than eight beds belong to the FVH.
It needs to be noted that employers engaged in the provision of accommodation in camping grounds, recreational
vehicle and trailer parks (NACE 55.20) are not represented by the FVH, but by the WKOs sectoral subunit
leisure and sports businesses (Fachverband Freizeit- und Sportbetriebe, FVFS). By the end of 2010, the FVFS
had 437 members, of which 370 were active. The number of employees is not available.

Besides the FVH, there is another important employer organisation in the hotels sector, the Austrian Hotel
Association (HV) for which membership is voluntary. The HV represents about 1,200 leading Austrian hotel
providers in the field of city tourism, holiday tourism, and multinational hotel group management. About 80% of its
members are upscale hotels of the four- and five-star category; the remaining 20% are hotels of the 3-star
category (For classification of hotels, see the Hotelstars Union). The density rate of the 4- and 5-star hotels lies at
about 57%. No information about the number of employees working in the HVs member businesses is
available.

While self-employed persons holding a business licence must register with the WKO, the GPA-djp also
represents self-employed persons with no employees (the GPA-djps interest group work@flex). Furthermore,
self-employed so-called free service contract workers (Freie Dienstnehmer) and new self-employed (Neue
Selbstndige), whose working situation rather resembles that of dependent employees than entrepreneurs, are
represented by the GPA-djps interest group. No information about their numbers and membership rates in the
sector is available, though.

2.3 Please provide information on the structure of collective bargaining in the hotels
and restaurants sector.
At what level are collective agreements in the hotels and restaurants sector concluded (company
and/or sectoral level)?
At national level, which trade unions and employers organisations are involved in the negotiations
of collective agreements?
Estimate the coverage rate of collective bargaining in terms of a) companies and b) employees.
Is there a practice of extending sectoral agreements to employers who are not affiliated to the
signatory employer associations?

The standard collective agreements in the sector are concluded at the sectoral level. There are separate
collective agreements for white-collar workers (represented by GPA-djp) and blue-collar workers (represented by
vida), respectively. In 2010, for the first time, both unions took part in the negotiations together. On the
employers side, both FVG and FVH take part in the collective bargaining process. Furthermore, the HV, which
was recognised as possessing the capacity to conclude collective agreements by the Federal Arbitration Board in
1991, takes part in the collective bargaining process, along with the other four groups. However, it is not a
signatory party to the collective agreements, but does apply them in its member companies. Due to the
mandatory membership of the employer organisations, the coverage rate of collective bargaining is at 100% for
both companies and employees. Besides the two national collective agreements for (blue- and white-collar)
workers in the hotel and gastronomy sectors, there are additional regional wage agreements for every one of
Austrias nine provinces (Lnder), as well as additional collective agreements on certain issues (e.g. on the
impact of passive smoking, see below). Furthermore, there are multiple company collective agreements
(especially in Vienna) which involve both blue- and white-collar employees (e.g. a specific collective agreement
for McDonalds with about 8,000 employees which serves as a role model to the whole fast-food industry sector,
according to vida). They are nevertheless concluded by the employer organisations on behalf of the companies
as single employers are normally not invested with the capacity to conclude collective agreements. A vida
representative estimates that there are about 50 single-employer collective agreements in the sector.

2.4 Is there a forum for social dialogue dealing with matters of the Hotels and
Restaurants sector? (Bi-partite and/or tripartite social dialogue at national or regional
level?). What are the aims of these bodies? Specify which unions and/or employers
organisations are involved.
There is no official forum for social dialogue dealing with matters of the hotels and restaurants sector. However,
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 for all economic
sectors. Thus, the social dialogue in the hotels and restaurants sector is also highly developed, even if there are
no official sectoral bodies.

2.5 Summarise about the incidence of industrial action in the past four years within the
hotels and restaurants sector (increase or decrease, nature of industrial action, the
main reasons for conflict and main outcomes)
Since 2005, there have been no incidences of industrial action in Austria.

3. Contribution of collective bargaining, social dialogue and social partners

to addressing the challenges facing the Hotels and restaurants sector

3.1 Please indicate whether collective bargaining / social dialogue at national sectoral
level, has contributed to address the challenges facing the hotels and restaurant sector
since 2006. Has collective bargaining / social dialogue introduced specific
clauses/instruments/initiatives to address these challenges? Please illustrate the most
important of such clauses/instruments/initiatives and include a brief assessment of
their impact. If there are relevant clauses/instruments/initiatives at regional or company
level (bigger companies) covering a large share of employees, could you please add
the same information for those agreements?
3.1. 1 Include clauses/instruments/initiatives for the following issues:

Agreements on working time and minimum wages

The minimum income as determined by the collective agreements is value adjusted in the collective bargaining
process every year. The latest collective bargaining round in May 2010 resulted in the conclusion of collective
agreements which are valid for 24 months, entailing a wage increase for both 2010 (plus 1.6%) and 2011 (plus
2.05%). From 1 May 2011 onwards, the new minimum wage lies at EUR 1200 gross per month. Wages differ
slightly between the provinces as there are separate wage agreements for some of them. In 2010, a nationwide
adjustment of remuneration for apprentices was reached.

Issues regarding working time were also part of the latest collective bargaining round. The employer side
demanded to decrease mandatory resting periods from eleven to eight hours; this was, however, prevented by
the unions.

Improvement of gender equality (including improvement of work-life balance arrangements);

of gender equality and work-life balance arrangement were not part of the collective bargaining
process lately. There might be specific projects aimed towards the improvement of gender issues,
however, data is scarce and difficult to assemble. One example of an initiative is the Interreg pilot
project ProFIT (Pro Family in Tourism), a tripartite initiative with participating partners from the
WKO, AMS, Federal Chamber of Labour (Arbeiterkammer, AK), regional authorities and other
partners in the western part of Tyrol (Landeck). Parents working in tourism receive support via the
provision of childcare on weekends, during school breaks, and during periods when childcare is
normally not available (evenings, nights). In the summer season 2010, some 70 children were
cared for in the region and some 60 children during the winter season. The pilot project will run until
the end of 2012.
Improvement of access to career development/lifelong learning/qualifications in the sector.

In November 2008, a specific qualification programme provided by the AMS (in whose executive bodies the
social partners are permanently represented) was implemented (Promotion of qualification for employees in the
hotel and restaurant sector). The costs of training and further education measures are subsidised by the AMS in
order to reduce the duration of seasonal unemployment and promote further training. Upon the presentation of an
education plan (agreed on jointly by the employee and the employer), 90% of the course costs are taken over by
the AMS, the remaining 10% are to be paid by the employer. Eligible are either persons in employment
relationships which are subject to full compulsory insurance or registered unemployed persons. There are,
however, no data available as to the level of participation of workers in that programme and no evaluation, either.

Addressing risk factors at work, including health risks, ergonomics, violence and harassment;
In order to protect workers from the impacts of passive smoking, a collective agreement was concluded between
the social partners. It includes the right to severance pay if the person terminates his/her employment
relationship due to smoke nuisance. Normally, workers have no claim to severance pay if they terminate their
employment relationship in their own will. Furthermore, access to diagnostic measures is eased and special
protection rules for apprentices and youth workers apply.

Measures dealing with migration (including any agreements on ethical recruitment; measures for
the better integration of migrant workers, etc.);

New regulations apply for seasonal workers with the opening of the Austrian labour market for workers from eight
NMS on 1 May 2011. In order to protect workers from those countries from underpayment, a law against social
and wage dumping was implemented, following a social partner agreement (see AT1006011I and AT1105011I).

Measures with the aim to tackle undeclared work in the sector

With 1 January 2008, a new law was implemented by the Austrian government in order to fight undeclared work.
This law followed a social partner agreement in April 2007 and applies to the whole economy. Under the
stipulations of the law, the employer is obliged to register workers at social security institutions before the
beginning of employment; before, a seven-day transitional period was granted.

Improvement of the working conditions of seasonal workers

See measures dealing with migration.

Promotion of employment for young workers

McDonalds, which applies its own single-employer collective agreement, pays its apprentices a higher
compensation than provided for in the sectoral collective agreement; furthermore, it covers the expenses for
apprentices accommodation in boarding-school type housing. This has been a longstanding demand of the trade
unions which is only very seldom fulfilled by companies in the sector.

Other measures with regard employment and working conditions (if relevant)

In the collective bargaining process in 2010, the flat rate for clothing for apprentices in the sector was increased
to EUR 34.50.

3.1.2 Illustrate the most important of such clauses/instruments/initiatives and include a brief
assessment of their impact

See information on ProFIT project above. This initiative was chosen as an illustration due to its innovative
character and due to the fact that it targets a problem (childcare, work-life balance) which is especially prevalent
in the hotels and restaurants sector because of long and irregular working hours.

3.2 Please indicate whether there are specific unions initiatives to address the
challenges facing the hotels and restaurant sector since 2006. Please illustrate the
most important of these initiatives.
3.2.1 Include initiatives for the following issues:

Improvement of gender equality (including improvement of work-life balance arrangements);

Improvement of access to career development/lifelong learning/qualifications in the sector.
Addressing risk factors at work, including health risks, ergonomics, violence and harassment;
Measures dealing with migration (including ethical recruitment; measures for the better integration
of migrant workers, etc.);
Measures with the aim to tackle undeclared work in the sector
Improvement of the working conditions of seasonal workers
Promotion of employment for young workers
Other measures with regard employment and working conditions (if relevant)

According to trade union representatives of both GPA-djp and vida, no unilateral initiatives on the above
mentioned issues were taken.

3.2.2 Illustrate the most important of such initiatives and include a brief assessment of their impact
n/a

3.3 Please indicate whether there are specific employer organisations initiatives to
address the challenges facing the hotels and restaurant sector since 2006. Please
illustrate the most important of these initiatives.
3.3.1 Include initiatives for the following issues:

Improvement of gender equality (including improvement of work-life balance arrangements);

Improvement of access to career development/lifelong learning/qualifications in the sector.
Addressing risk factors at work, including health risks, ergonomics, violence and harassment;
Measures dealing with migration (including ethical recruitment; measures for the better integration
of migrant workers, etc.);

The HV has sent information brochures about working in Austria to all its member companies in Hungarian,
Czech and Slovak languages in order to attract new employees from those countries. The brochures include
information on Austrian labour law, living costs, bureaucracy, lodging, health care, German language courses
and other issues. The brochures are to be disseminated by migrant workers in Austria in their home countries.
The members of HV face a problem since about a third of the seasonal workers of their members are from
Rumania, Bulgaria and former Yugoslavia; for those workers, the opening of the labour market is not relevant
and as the regular contingent of seasonal workers was radically reduced due to the opening of the labour market,
there will not be enough contingents for all of the workers from Romania, Bulgaria and Yugoslavia who have
worked in Austrias tourism sector before and it will , thus, be difficult to get those workers back (except for if they
qualify for the permanent seasonal workers permit, see above).

Measures with the aim to tackle undeclared work in the sector

Improvement of the working conditions of seasonal workers
Promotion of employment for young workers

According to the WKO, there are initiatives in order to make employment in the sector more attractive for
apprentices/young workers. Those initiatives include projects and image improving campaigns at the provincial
level (Get a Job, Glcksbringer).

Other measures with regard employment and working conditions (if relevant)

The WKOs section tourism has commissioned the economic think-tank Institute for Advanced Studies (IHS) to
develop a labour market monitor for the tourism sector (AMT). A main finding is the forecast that due to the
employment growth in the sector, the high fluctuation and the demographic development, there will be growing
demand for recruiting employees in the future. Meeting this demand is a main precondition for sustainable growth
in the tourism sector. The focus thus needs to lie on qualification measures, increasing professional and regional
mobility, on ensuring that employees remain in the sector longer. Measures to be adopted include the promotion
of re-integration of parents (i.e. mothers) who have been on parental leave by improving reconciliation of work
and family, as well as measures targeted towards prevention and active ageing.

The main problem the trade unions see is the unattractiveness of the sector. It is argued that within the social
partnership, actors in Austria need to think about innovative concepts of how to make the sector more attractive
not just for younger employees.

3.3.2 Illustrate the most important of such initiatives and include a brief assessment of their impact

The project Glcksbringer is an image improving initiative for apprenticeships in the tourism sector by the WKO
in the province of Tyrol. It includes an online apprenticeship market and information on the different professions
in the HORECA sector. The project Get a Job is an information campaign about a career in the tourism sector
which is offered in several provinces, in cooperation with the AMS and the Federal Ministry of Economy, Family
and Youth (Bundesministerium fr Wirtschaft, Familie und Jugend, BMWFJ). It targets students between 13 and
15 years. No official data or evaluations are available as to whether the campaigns have resulted in an increase
in apprenticeships in the sector; however, targeted youth have evaluated the programmes positively as their
opinions on employment in the sector have improved.
4. Commentary

Industrial relations in the hotels and restaurants sector correspond to the industrial relations system in Austria
with mandatory employer organisations under the umbrella of the WKO and specific unions catering to blue-collar
and white-collar workers. Working conditions in the sector are notoriously poor. Employees report on time
pressure and tight staffing arrangements due to companies savings plans (cf. Biehl et al. 2011). Furthermore,
wages are significantly lower than in other sectors and more than half of all employees in the sector can hardly
make do with their incomes. Employees are furthermore not satisfied with the offer on further training/education;
this in turn causes a low employer commitment; thus, fluctuation in the sector is high. Efforts by employer
associations include image improving campaigns on the sector in order to attract apprentices; some (regional)
efforts with regards to further training and improvement of work-life balance for parents have been implemented.
Employment in the sector is characterised by a comparatively high share (ca. 30%) of migrant workers; due to
the de-facto opening of the labour market for foreign workers via seasonal working contingents in the past years,
the influence of the Austrian labour market opening for workers from NMS in May 2011 is expected to be rather
marginal.

References:
Biehl, Kai/Kaske, Rudolf (Eds.) (2011): Tourismus in sterreich 2011 mit einer Sonderauswertung
des sterreichischen Arbeitsklimaindex, vida/AK Wien, Vienna.
Schneider, Friedrich (2011): Der Einfluss der Erholung von der Wirtschaftskrise auf die
Schattenwirtschaft in Deutschland und anderen OECDStaaten: Ein (erneuter) Rckgang, Linz.
Download available at http://www.economics.uni-
linz.ac.at/members/Schneider/files/publications/2011/Schatt2011.pdf
Statistik Austria (2009): Arbeits- und Lebenssituation von Migrantinnen und Migranten in sterreich
2008 Modul der Arbeitskrfteerhebung 2008, Vienna.
Statistik Austria (2010): Arbeitskrfteerhebung 2009, Ergebnisse des Mikrozensus, Vienna.
WKO (2010): Tourismus in Zahlen. sterreichische und internationale Tourismus- und
Wirtschaftsdaten. 46. Ausgabe, Mrz 2010, Vienna.

Bernadette Allinger, FORBA (Working Life Research Centre)

Source URL (modified on 2012-04-23 22:00): 22 November 2017

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