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Stocker promises more money for insolvency compensation fund
🇦🇹 Austria /Economy & Trade

Stocker promises more money for insolvency compensation fund

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News From a news agency New plan
  • Austrian Chancellor Christian Stocker promises a solution for a funding gap in the insolvency compensation fund.
  • The gap, expected to reach 160 million euros in 2027, requires clarification on whether it stems from systemic issues or post-COVID effects.
  • Proposals to use reserve funds from chambers of commerce were rejected by worker representatives and unions, who advocate for increased employer contributions.

Austrian Chancellor Christian Stocker has pledged to address a significant funding shortfall in the insolvency compensation fund, which safeguards employees' claims like wages and severance pay.

The gap is not yet clear to me.

— Christian StockerChancellor Stocker explaining the need to clarify the cause of the funding shortfall before implementing a solution.

However, Stocker emphasized the need to first determine the cause of the gap. He stated that it remains unclear whether the deficit is a result of systemic problems or lingering effects from the COVID-19 pandemic. The solution will depend on this determination.

There is a lot of money here.

— Josef SchellhornState Secretary Schellhorn suggesting the use of reserve funds from chambers of commerce to cover the shortfall.

The insolvency fund is financed by employers through a surcharge on unemployment insurance. A projected shortfall of 160 million euros for 2027 has prompted debate on how to cover it. Options include the responsible Social Minister taking out loans or increasing the surcharge, a move opposed by the conservative ÖVP and NEOS parties due to concerns about rising non-wage labor costs.

The absurd demand.

— Chamber of Labour (AK)The Chamber of Labour's response to Schellhorn's proposal to use reserve funds.

State Secretary Josef Schellhorn (NEOS) suggested tapping into the substantial reserves held by the chambers of commerce, a proposal swiftly rejected by the Chamber of Labour (AK) as "absurd." Trade union PRO-GE chief Reinhold Binder also stated that employers should not shirk their responsibility. Meanwhile, Green Party social affairs spokesperson Markus Koza believes the solution is straightforward: increasing contributions to the fund, as indicated by the relevant law.

Employers must not shirk their responsibility.

— Reinhold BinderPRO-GE chief Reinhold Binder commenting on the funding issue.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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