Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

Employment Policy Convention, 1964 (No. 122) - Austria (Ratification: 1972)

The Committee notes the observations made by the Federal Chamber of Labour (BAK), transmitted together with the Government’s report.

Articles 1 and 2 of the Convention. Employment trends and active labour market measures. In its previous comments, the Committee requested the Government to provide information on employment measures targeting workers in vulnerable situations, such as low-skilled workers, persons with disabilities and immigrant workers, and on the involvement of the social partners in the development of such measures. The Committee notes the information provided by the Government on the adoption of the seventh National Reform Programme (NRP) in April 2017, which includes labour market measures to achieve the national targets established in the framework of the Europe 2020 strategy. The Government indicates that these measures are being implemented in close cooperation with the Länder, regions and local communities, as well as the social partners and relevant stakeholders. Austria’s national goal is to increase the employment rate among women and men aged 20–64 to 77–78 per cent. In this regard, the Government indicates that the employment rate among those aged 20 to 64 was 74.8 per cent in 2016. Nevertheless, the Committee notes that, according to the European Commission 2017 Country Report on Austria, most of the jobs created in recent years are part-time (full-time employment has increased only recently) and a majority of new positions are in low-wage sectors. The cited report further indicates that employment has increased more slowly than the labour supply. This has led to an increase in the unemployment rate, which reached 6.1 per cent in the second and third quarters of 2016, slightly above its previous peak in 2004. The Government indicates that factors contributing to the increase in the labour supply include increasing immigration flows from abroad (including refugees and those with subsidiary protection status), a rising employment rate among older workers due to the reforms to early retirement and invalidity pensions, and the increasing labour force participation of women. Furthermore, the Committee notes from the cited report that, while expanded and targeted policies to get people into work are delivering good results, finding employment remains a challenge for older workers, low-skilled workers and people with a migrant background (especially women born outside the EU). Moreover, significant gender inequalities persist in the labour market. The Government indicates that, to address these challenges, the active employment policy resources were again significantly increased in 2017 with the aim of assisting the target groups of older workers, women and persons with a migration background. In addition, resources of up to €120 million a year were made available from 2017 to assist long-term unemployed persons in securing employment. In its observations, the BAK maintains that further efforts are necessary to combat long-term unemployment. The Committee requests the Government to provide updated information, including statistical information disaggregated by sex and age, on the measures taken or envisaged under the National Reform Programmes and their impact on the promotion of full, productive and freely chosen employment. It also requests the Government to provide information on employment trends, disaggregated by age and sex, and on the procedures for deciding on and reviewing employment measures implemented within the framework of an overall economic and social policy.

Education and training. In reply to the Committee’s previous comments, the Government indicates that the skilled workers’ grant has been reintroduced for a limited term the AQUA (on-the-job qualifications) project has been continued, with the aim of encouraging people to obtain higher levels of skills in occupations where there are skills shortages and to obtain qualifications through training. Both initiatives provide for the participation of 6,500 beneficiaries between 2017 and 2018. In its observations, the BAK welcomes the strong focus of the labour market policy on continued efforts to raise training standards among the working population, especially among young people, older workers and workers with few or insufficient skills. It adds that this focus has had one of the most significant and consistent knock-on effects on employment promotion. The BAK requests the establishment of a second training opportunity to give workers and jobseekers the possibility of changing career paths, and the further development of the existing education benefits into an education grant in the amount of a living wage to which workers should be legally entitled. The BAK stresses the importance of “new advice and support institutions” (“BBE neu”) to provide individual counselling and support to unemployed persons who face multiple obstacles to finding work, with the aim of reintegrating them into the labour market. The Committee requests the Government to provide detailed updated information on the nature and impact of the programmes and measures taken in the area of education and training and on their relation to prospective employment opportunities.

Older workers. In reply to the Committee’s previous comments, the Government indicates that the employment rate among older people increased from 43.8 per cent in 2013 to 49.2 per cent in 2016. The Committee notes the Government’s indication that the federal Government’s employment programme for 2017–18 includes the adoption and implementation of specific measures for older workers and older unemployed persons. In particular, the Government refers to, among other measures, an increase to €175 million in the funding for 2017 for the implementation of the “initiative 50+” to reintegrate unemployed persons over the age of 50 who have been registered as unemployed with the Austrian Public Employment Service for more than 180 days. In 2016, 23,000 persons benefited from this programme. In addition, new legislation on part-time work for professional reintegration (return to work after absence due to illness of at least six weeks) was adopted. Under the new legislation, workers are entitled to a reintegration allowance out of health insurance funds, in addition to accrued wages (adjusted pro rata) from the part-time employment. Furthermore, a partial pension scheme for semi-retirement was introduced in January 2016 with the aim of keeping workers in employment for longer. The semi-retirement scheme consists of a reduction in working hours with partial wage compensation. In July 2017, protection against dismissal was relaxed for workers aged over 50 to promote their recruitment and the “Action 20,000 initiative” was introduced with the objective of creating an average of 20,000 additional jobs per year in local communities, non-profit support associations and enterprises. The BAK welcomes the “Action 20,000 initiative” considering that it establishes demand-side measures in the context of the labour market policy. The Committee requests the Government to continue to provide information on the active labour market measures adopted or envisaged targeting older workers as well as on the impact of such measures. It further requests the Government to provide information on the nature of the modifications made to the protections against dismissal in relation to older workers.

Women. The Committee notes from the NRP 2017 that the labour market potential of women is not leveraged sufficiently in Austria, with an especially critical point being the rate of part-time work among women due to care obligations. According to data published by Statistics Austria, in 2015, four out of five part-time employees were women, and the rate of part-time work among women came to 47.4 per cent, which is considerably higher than the EU average of 37.2 per cent. In this respect, the Committee notes the information provided by the Government concerning the adoption of measures to promote the involvement of fathers in childcare and a more partnership-based management of family life. The Government indicates that significantly more women than men are in non-standard forms of employment or are in low-paid employment. It adds that all these factors, together with significant occupational gender segregation in the labour market determine the high gender pay gap in the country (according to Eurostat, the gender pay gap was 20.1 per cent in 2016). The Government refers to initiatives taken to dismantle the structural differences between women and men in the Austrian labour market, including the creation of the online platform “My technology” to overcome gender stereotypes and promote diversification in the choice of training and occupation; and the “Support the return to work” programme, which provides tailored advice on planning women’s return to work. In its observations, the BAK stresses the low employment rate of women from non-EU countries, stressing that efforts are urgently required to guarantee their early access into employment. The BAK maintains that the risk that these women will not be integrated into the labour market is increased by, among other factors, legal and financial dependence on their husbands; educational and occupational disadvantages that arose in their country of origin, childcare obligations, eligibility for lump-sum allowances, stereotypes and prejudices. As a result, the BAK considers that it is necessary to adopt specific measures to promote the integration of these women into the labour market, such as identifying non-profit activities and work-related training activities that are readily accessible for them and raising awareness among companies. The Committee requests the Government to provide updated detailed information on the nature and impact of measures adopted or envisaged to promote the participation of women in the labour market, including women in vulnerable situations, such as women from non-EU countries.

Youth employment. The Committee notes that, according to Eurostat, the youth unemployment rate was 11.2 per cent in 2016, the fifth lowest within the European Union (20.9 per cent). The Committee also notes from the “Youth and Work in Austria (2016-17)” report of the Social Affairs Ministry Service (SMS), that the low unemployment rate among young people are due to the provision of vocational education in the form of dual vocational education and training (apprenticeships) and active labour market policies targeted at young people. The Government indicates that, in 2016, €850 million were spent on measures to support the integration of young persons into the labour market, including subsidies for company-based apprenticeships to provide basic support to all employers willing to train apprentices, career counselling and guidance by the Public Employment Services and programmes to manage the school to work transition. The BAK observes that, although the number of apprenticeships available increased in 2016, the total number of apprentices also increased. As a result, there was still a significant shortage of apprenticeships. Therefore, the BAK affirms that additional measures are needed to ensure that young people looking for apprenticeships receive continued training. Furthermore, the Committee notes the information provided by the Government concerning measures adopted to implement the EU Youth Guarantee. In particular, the Government refers to the adoption in 2016 of the “Education Training till 18” programme to support sustainable labour market integration on the one hand, and meet the employers’ demand for well-trained young people on the other. According to the report of the SMS, the Compulsory Education or Training Act related to the Education Training till 18 programme was adopted in July 2016, with continuing education or training becoming compulsory as of 1 July 2017. Under the Act, parents or guardians are responsible for compliance with compulsory education/training, and as of 1 July 2018 non-compliance may result in penalties of between €100 and €500. The cited report points out that relevant stakeholder involved in the implementation of the Education Training till 18 programme, include the public employment service, the SMS, the Länder, social partners, youth representatives at the federal level and the local communities. However, the BAK informs that asylum seekers are not covered by this initiative and requests for their inclusion in order to integrate them into the education system and the labour market as quickly as possible. The Government further indicates the continuation of the implementation of the Training Guarantee, which provides apprenticeship programmes in supra-company training entities to young people who cannot be placed in a company-run apprenticeship. Finally, the Government indicates the replacement in January 2017 of the Future for Youth Action Programme for young adults aged 19–24 by the Training Guarantee till 25, under which labour market policies for young people aged 19 to 25 are placing increased focus on education and training to ensure sustainable labour market integration. The Committee requests the Government to continue to provide information on the impact of the vocational education measures and active labour market policies targeted at young people.

Persons with a migration background. The Committee notes that, according to the previously cited European Commission report, the proportion of the population with a migrant background is increasing, while their labour market potential is underused. Some 9.3 per cent of the Austrian population was born outside the EU, and with an employment rate of 60.6 per cent in 2015 they are much less likely to be in employment than native-born people, with an employment rate of 76.4 per cent. The report also states that people born outside the EU are often underemployed and face a high risk of being overqualified when employed. The Committee welcomes the set of measures adopted by the Government to make use of the labour potential of persons with a migration background and to integrate persons granted asylum or subsidiary protection status into the labour market more quickly. In this respect, the Government indicates the adoption of the Recognition and Assessment Act, No. 55/2016 in 2016, to make skills and educational qualifications acquired abroad comparable to the Austrian frame of reference, so that people can be integrated into the labour market taking account of their qualifications. The Government also refers to the implementation of the Competence Check project in all Länder to assess the qualification of persons with asylum status. In 2016, almost 6,000 persons with asylum status completed a competence check. Nevertheless, the BAK observes that additional measures should be taken to guarantee that asylum seekers are informed during the asylum procedure of the possibility of having their educational qualifications recognized and receiving practical support with the recognition process. Moreover, the compulsory integration year under the Labour Market Integration Act (No. 75/2017) was implemented with the objective of integrating persons with asylum status into the labour market as early as possible. During the integration year, participants learn German and receive support with choosing an occupation and obtain knowledge and skills within the framework of work-related training in the non-profit sector. In this respect, the BAK calls for a focus on vocational training and further education during the integration year. Furthermore, a Youth College was established in Vienna for persons with asylum or subsidiary protection status that are between 15 and 21 years of age. The objective is to provide basic education leading the participants to pursue secondary school, vocational training or long-term employment. The Government also indicates that the Public Employment Service spent about €96 million in 2016 on measures to integrate persons with asylum status into the labour market and that under the new Labour Market Integration Act, about €196 million were made available in 2017 for labour market policy measures or subsidies targeting this group. On the other hand, the BAK maintains that proposals made by the social partners to promote earlier access to the market for asylum seekers were not taken into account. The Committee requests the Government to provide information on the impact of the measures adopted for the use of the labour potential of persons with a migration background and to integrate persons granted asylum or subsidiary protection status into the labour market, and on the involvement of the social partners in their formulation.

Persons with disabilities. The Government reports on the adoption of the National Labour Market Policy Programme (BABE) Disability Training-Employment for 2014–17 in 2013, following a decision of the National Action Plan for Disability 2012–20 (NAP Disability) of the Austrian federal Government. It adds that the Service Agency of the SMS has adjusted the strategic direction of its services to promote disability mainstreaming. As a result, persons with disabilities have access to all general labour market policies as well as to specific and appropriate support. The Committee notes that, according to the “Overview of the horizontal issue of disability in Austria” report of the SMS, under the Employment of People with Disabilities Act, Austrian citizens with a degree of disability of at least 50 per cent can apply for the status of persons with disabilities entitled to receive special support. Among the benefits that they receive are: increased protection against dismissal (employers have to obtain the prior agreement of the Disabled Persons Committee before they can dismiss a worker with a disability); occupational subsidies (financial benefits and special training courses); additional paid leave; and income tax allowances. The Act also requires firms to employ at least one person with a disability for every 25 non-disabled employees. The law is enforced by a non-compliance tax, which amounts to more than €200 per month. Moreover, the BAK states that persons with disabilities are also entitled to the different modalities of training included under the Vocational Training Act. The BAK observes that, according to statistical information from the Austrian Economic Chambers, the number of participants in such training increased from 6,475 in 2014 to 7,163 in 2016. The Committee requests the Government to continue to provide updated detailed information on the measures taken or envisaged to promote employment opportunities of persons with disabilities in the open labour market and on their impact, including information on the application of the National Labour Market Policy Programme (BABE) Disability Training-Employment for 2014–17 and the Employment of People with Disabilities Act.