The collective bargaining negotiations for Austria's retail sector have commenced, with the union demanding a 4.8% wage increase, which includes a 1% rise above the rolling inflation rate of 3.8%.

The negotiations, involving 572,000 employees, are expected to be challenging due to the economic difficulties faced by the industry.

Employers, represented by Rainer Trefelik, argue that such demands are unrealistic given the current economic climate, where sales have dropped by 9.8% since 2020, while wage and consumer price indices have risen significantly.

The union, led by Veronika Arnost, emphasizes the need for wage increases to boost purchasing power, which they argue is crucial for economic recovery.

Additionally, the union is pushing for more leisure days to make the sector more attractive, a proposal that employers have rejected due to concerns over increased workload.

The negotiations are set to continue with multiple sessions planned, aiming for a resolution before the critical Christmas shopping season.