Flexicurity in Austria: Social Partnership just renamed?

In recent years Flexicurity has become an essential part of the European Employment Strategy. The combination of a more flexible labour market and stronger social security measures, should position the member states to face impending labour market challenges. Due to its corporatist model as well as due to its institutionalized interest-conflict between labour and capital, the Flexicurity case of Austria- within the member states of the European Union- is of special interest. This is especially identifiable in the specific way of the bargaining processes between flexibility (capital) and security (labour) dimensions in Austria. The broad „Flexicurity“ literature has a lack of following questions concerning the Austrian political system: Firstly: Had the implementation of Flexicurity measures in Austria an impact on the traditional bargaining process of the social partnership? Secondly: Had the implementation of Flexicurity measures in Austria an impact on the law making process in the field of labour- market issues? Thirdly: How does the implementation of lexicurity characterize a suitable alternative to the traditional implementation process of labour market related issues? To answer these questions this article will describe developments in the “flexicurity-securitynexus” on the Austrian labour market. After illustrating three different relevant law making processes between the years 2002 until 2007 (introduction of a new severance pay system, adoption of the “Flexicurity laws package”, changes in the Working Hours Act), this paper will argue that Flexicurity in Austria is nothing more than traditional bargaining of the Austrian Social Partnership (Sozialpartnerschaft) under a new label. Further more it will argue, that Flexicurity is not applicable as a viable way forward for the Austrian labour market.