New Two-Year Collective Agreement Brings Stability to Austria's Metal Industry

The Austrian metal sector has reached a significant milestone with the agreement of a new two-year collective bargaining arrangement, aimed at enhancing stability and fostering positive future prospects for both businesses and employees. This development comes after negotiations between industry representatives and social partners, addressing the continued challenges faced by companies in the sector.

Summary of the Agreement

The newly established collective agreement covers a two-year period starting from January 1, 2026. Under the terms, actual wages for employees in the metal industry will increase by 1.8% in both 2026 and 2027, with a maximum cap of 85 euros per month for 2026. In contrast, the collectively agreed base wages will see a rise of 2.2% in 2026 and a further 2.0% in 2027. The underlying inflation rate used for these negotiations was 2.82%, ensuring that the agreement remains in line with broader economic indicators.

Administrative Simplification and Predictability

The new agreement intentionally avoids one-off payments, a measure that seeks to minimize administrative complexity for businesses. Instead, increases are implemented through straightforward, predictable adjustments to salaries and wages. This approach is designed to provide companies in the metal sector with much-needed planning security and operational flexibility, particularly given the recent economic headwinds such as elevated energy costs and rising wage pressures.

Focus on Vocational Training

In addition to addressing general wage increases, the agreement places a strong emphasis on vocational training. Over the two-year period, apprentice earnings will also rise by 2.0% annually. However, to further enhance the appeal of dual training programs, apprentice remuneration will be set at 1,000 euros for the first year and increased to 2,000 euros by the fourth year, starting in 2026. This measure is intended to attract more young talent to the sector and ensure a steady pipeline of skilled workers for the future.

Sectoral Impact and Coverage

The agreement impacts approximately 120,000 workers and over 20,730 employer companies within Austria's metal industry. It also includes around 19,000 apprentices. The sectors covered by the agreement span a broad range of specializations, including metal technicians, sheet metal workers, coppersmiths, installers, electrical and building technicians, mechatronics specialists, automotive and vehicle technicians, as well as professionals in the fields of gold and silversmithing, jewelry, watchmaking, optometry, orthopedics, and hearing aid technology.

Strategic Industry Positioning

By addressing both the immediate needs of companies for cost control and the long-term necessity of fostering skilled labor, the collective bargaining agreement seeks to strengthen Austria's competitiveness in the metal sector. The dual focus on moderate wage increases and enhanced training benefits reflects a balanced approach to economic pressures and workforce development. As a result, the sector aims to maintain its attractiveness both as an employer and as a key pillar of Austria's broader industrial landscape.

Overall, the agreement is expected to provide greater certainty for planning and investment, while supporting the sustainability of businesses and the welfare of employees in a challenging economic environment.