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Chamber of Labor Calls for a More Equitable Distribution

Published: December 28, 2010; 22:42 · (Vindobona)

Corporate profits on one hand and reduced working hours, dismissals and wage cuts on the other, are not compatible for the Chamber of Labor.

Chamber of Labor Calls for a More Equitable Distribution / Picture: © Arbeiterkammer Austria

The Chamber of Labor has created for the first time a corporate monitor in which the balance sheet data for 2009 have been collected. The interest-representing organization criticizes the fact that companies are celebrating "rich capital gains" and "generous dividends”, because this is being done at the expense of the workers: "Many employees were confronted with short-time work, layoffs, and wage and salary losses."

The Chamber of Labor also criticizes the favorable tax situation: "Owing to the crisis, the distribution tilt between employers and employees clearly solidified. Not only that: In 2009, profiting companies pay only 17.5% effective tax, which is an absolute low, even in international comparison.”

The President of the Chamber of Labor, Herbert Tumpel says: "Paying taxes is a social responsibility, tax loopholes must be closed finally."

The Chamber of Labor calls for more modest dividends and a fair share of future productivity gains.

The corporate monitor was created by the Chambers of Labor of Upper Austria, Lower Austria and Vienna. 1,500 large and medium sized enterprises were  analyzed based on their financial statement information. The calculated dimensions are the return on equity, the equity ratio, the willingness to invest, the tax contribution and the relationship between wage and salary payments to dividend payouts.