Collective Bargaining in Times of High Inflation

First, inflation developments in Austria are compared with those in the euro area. Then the relationship between income and prices is examined on the basis of the international literature as well as the institutional conditions for wage negotiations in Austria. Suggestions for changes in wage negotiations include a switch from rolling to current inflation, combined with compensation for employees, and then the targeted use of one-off payments. Finally, the nominal sectoral gross value added is referred to as an additional benchmark for productivity development.