We don't have a shortage of workers – we have a shortage of wages
Why the shortage occupation list and the Red-White-Red Card do not solve the problem.
Labour market
The statements of the Wirtschaftsbund on the current labour market situation are met with sharp criticism by the trade union vida. For Roman Hebenstreit, chairman of the trade union vida, it is clear: As long as wages rise below the inflation rate, complaints about a lack of workers are implausible. And as long as companies stick to low wages, neither the Red-White-Red Card nor the shortage occupation list will solve the structural problems.
"Whining about labor shortages and welcoming wage increases below the inflation rate - that doesn't go together."vida-Vorsitzender
Hebenstreit finds clear words about the latest statements of the Economic Association:
"Whining about labor shortages and welcoming wage increases below the inflation rate do not go together. Even the Red-White-Red Card and the shortage occupation list will not solve the problems on the labour market."
Anyone who weakens purchasing power in this way is not pursuing an active labour market policy – but simply wage suppression. This is particularly fatal in a situation in which the number of jobseekers has risen again to almost 400,000.
Not a shortage of labour – but a "fall in the price of labour"
If wages in shortage occupations remain below the inflation rate, one cannot speak of real shortages, Hebenstreit emphasizes.
"If wages fall adjusted for purchasing power, then this is a clear signal that there is no shortage of workers, but only a lack of will to pay fair wages," criticizes the vida chairman.
In view of this "fall in the price of labour", a clear political course correction is needed.
vida calls for a 180-degree turn in labour market policy
In order for the Austrian labour market to function again and sectors to remain attractive for employees, the union is calling for a rethink. The focus is on fair wages, qualification and the responsible use of taxpayers' money.
1. Rethinking the shortage occupation list
Occupational groups are to be removed from the shortage occupation list if their industries conclude collective agreements under inflation. Those who are not willing to pay fair wages must not benefit from facilitated immigration.
2. Secure purchasing power
In the future, wages must be above inflation – as a prerequisite for keeping skilled workers in Germany, bringing people back into the sectors and financing the social and pension system in a stable way.
3. Focus on training instead of wage dumping
Investments in the qualification of the domestic workforce must have priority. Labour migration must not be misused as a tool to depress wage levels.
"The shortage occupation list degenerates into a subsidy list for wage dumping"
Hebenstreit becomes clear in the use of public funds:
"We cannot allow millions of taxpayers' money to be squandered on the recruitment of foreign workers, while in Austria itself the wage level is falling into the basement and unemployment is rising."
A list that is actually supposed to depict scarcity thus becomes a political invitation to wage dumping.
"We have a shortage of wages – not a shortage of workers"
Roman Hebenstreit calls for more honesty in the debate:
"The Wirtschaftsbund should stop doing 'pi times thumb calculations' about a nationwide shortage of workers. Instead, he should finally take note of the fact that we have a wage shortage."
For two decades, wages in Austria have been rising only moderately – and mainly in favour of top earners. The bottom line is that there is too little left for employees in lower and middle income groups.
