Collective Bargaining in Times of High Inflation

Current Article in the WIFO-Monatsberichte (Monthly Reports)
A current article in the WIFO-Monatsberichte (monthly reports) by Gabriel Felbermayr, Benjamin Bittschi and Josef Baumgartner shows ways of dealing with the current challenges in collective bargaining in order to support real wage development on the one hand and to curb high inflation on the other.

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.

Finalization: September 2023
Specialist publication: WIFO-Monatsberichte
JEL-Codes: E31, J30, J31, J52