$Unique_ID{COW00228} $Pretitle{376} $Title{Austria Chapter 4B. Living Conditions} $Subtitle{} $Author{Susan H. Scurlock} $Affiliation{HQ, Department of the Army} $Subject{percent housing austria austrian vienna workers dwellings earnings austrians insurance} $Date{1976} $Log{New Danube*0022801.scf Table 4.*0022801.tab } Country: Austria Book: Austria, A Country Study Author: Susan H. Scurlock Affiliation: HQ, Department of the Army Date: 1976 Chapter 4B. Living Conditions [See New Danube: Recreational area in Vienna. Courtesy Embassy of Austria, Washington DC.] In the years before World War I, agriculture and forestry provided the livelihood for most of the people in the territory that is now Austria. The capital city was supported by goods from all over the empire. When this empire was dissolved and the Allied powers insisted that Austria be an independent nation, economic self-sufficiency seemed impossible. The country did not seem to have the agricultural or industrial capacity to support itself. During the interwar years, though retarded by the inability of the two major political parties to cooperate effectively and later by the depression, progress was made in improving agricultural production, in developing natural resources and industry, and in stimulating tourism. During the years of Anschluss and the ensuing world war, some German capital was devoted to developing industry in the western sections of Austria. Agriculture, however, was neglected. The war left many parts of Austria, especially Vienna, badly devastated, and great numbers of refugees created a further strain on housing and food supplies. The critical shortage of food, shelter, fuel, and other necessities left hundreds of thousands of people hungry and homeless. The situation was so desperate that in Vienna in 1945 rations fell to an average of only 1,220 calories per person per day. The infant mortality rate and the incidence of tuberculosis, as well as the suicide rate, went up. A large-scale relief effort was joined by numerous international charity organizations. Great Britain, Canada, Switzerland, the Scandinavian countries, and particularly the United States were represented by such organizations as the Cooperative for American Relief Everywhere (CARE), the International Red Cross, the United Nations Children's Fund (UNICEF), and the American Friends Service Committee. In 1946 the United Nations Relief and Rehabilitation Administration (UNRRA) was able to step in to provide food and agricultural supplies. During the next year Austria received over US $100 million in aid from the United States alone. The crisis situation persisted in Vienna for several years after the war ended and left a bitter impression on the part of the population old enough to remember it. It was ultimately the Austrian government's decision to accept aid under the European Recovery Program (ERP-known as the Marshall Plan) that set the country on its feet. Large amounts of capital and organizational skill were infused into industry and agriculture to stimulate production. Most of the benefits of Marshall Plan aid, however, were used in the American, French, and British zones of occupation. Considerable improvements were made there, and opportunities opened up. In the Soviet sector the situation was the opposite. The Soviets dismantled factories, confiscated businesses, and appropriated the oil fields and many industries for their own use. Trade and travel routes were cut off or seriously restricted, forcing the partial isolation of Vienna and contributing to the city's decline. It was not until 1955 that the Soviet Union agreed to vacate Austrian territory. As a condition of departure it demanded reparation payments and annual allotments of Austrian oil for ten years. After the signing of the Austrian State Treaty in 1955 and the subsequent withdrawal of all foreign troops from Austrian soil, the groundwork had been laid for an economic upsurge that lasted well into the 1960s. Probably the most striking change in Austria has been the drop in the number of people employed in agriculture. In some areas the drop was 50 percent between 1934 and 1970. In the early 1950s the shortage of manpower in rural areas was a serious problem. Mechanization and modernization had not advanced production sufficiently to make up for the loss of workers. The government took such steps as providing housing and supplementing income to encourage war refugees to become agricultural workers. Labor Conditions and Social Welfare Austria has a comprehensive scheme of labor legislation and social insurance. Both workers and self-employed persons, including foreign workers, are covered by retirement plans, disability, sickness and maternity benefits, unemployment insurance, and family allowances. As early as the 1880s the first laws were passed to regulate working conditions and to provide insurance against accidents and illness for some industrial workers. By 1910 old-age pensions for salaried employees were introduced. After 1918, at the insistence of the Socialist Party, the Ministry of Social Services was set up, and great strides were made in social legislation. Unemployment insurance, the eight-hour day, paid holidays, and child labor laws were introduced at that time. These measures were suspended during the German occupation when the German system was adopted. After the war the Austrian system was gradually reintroduced and modernized. All features have been almost constantly revised to meet new situations, and all pension and insurance benefits are adjusted annually to conform with changes in the national average earnings. Labor legislation has been devised with a goal of maximum communication and cooperation between employees and employers. Both groups have their own special-interest associations and unions, which work with the government and each other. Although there have been strikes, they have usually been settled quickly. In general, the established arbitration mechanisms have been able to reach agreements without work stoppage. As the system had developed by the early 1970s, a worker being hired entered into a written contract with the employer, which guaranteed the conditions of employment and outlined the responsibilities of both parties to each other. Businesses with more than five employees are required to have an employee representative on decisionmaking boards. If there are more than twenty employees, a workers' council must be appointed. These councils oversee working conditions and personnel policy and have a voice in the management of the business. Workers in each province are represented by the Chamber of Labor. These chambers were founded after World War I to protect and further the interests of Austrian workers. Membership in these organizations continues to be compulsory for all employed persons. The chambers are concerned with prices, public health, housing, and adult education in addition to labor conditions. The Austrian Trade Union Federation is the strongest voice for the worker. It decides the general policy for the sixteen independent labor unions whose membership is drawn from specialized trades, such as the Union of Metal and Mine Workers, the Union of White-Collar Workers, and the Union of Textile, Clothing, and Leatherworkers. Two-thirds of Austrian workers belonged to a labor union in 1975. Representing the employers is the Federal Economic Chamber, organized in nine regional (provincial) offices and one at the federal level, which is located in the capital. Voluntary associations include the Organization of Austrian Banks, the Peasants' League, and the Association of Austrian Industrialists. The Ministry for Social Administration supervises the social security system. Social insurance is provided by various institutes or funds that are self-administered but regulated by law and the ministry. Different categories of workers and different areas of coverage, such as old age, accidents, and health, have separate insurance funds. Since the General Social Insurance Act of 1955 was adopted, more than 90 percent of the Austrian population, including wage earners, salaried employees, and the self-employed and their families, have been covered by old-age and disability insurance. At the 1971 rate the insured person and his employer contributed equal amounts of 8.5 to 8.75 percent of earnings up to an annual maximum of AS113,400 (for value of the Austrian schilling-see Glossary); the government contributed 29 percent of the total costs. Retirement at full pension was at age sixty-five for men and sixty for women if contributions had been made to the fund for at least 180 months. Those who had worked for over thirty-five years could retire with full pension five years early. Pensions were 30 percent of annual earnings plus an increment for the number of years of contribution. Disability pensions were supplemented up to 50 percent of earnings. After the death of an insured person his widow and orphan children received 60 percent of the pension along with a funeral grant. Since there was a shortage of workers in Austria, pensioners were allowed to work while receiving a pension as long as their earnings did not exceed a certain percentage of their pensions. Employed persons were covered by compulsory unemployment insurance for which they and their employers each contributed 1 percent of earnings. To be eligible, the worker must not have left his job voluntarily, been guilty of misconduct, or refused other suitable offers of employment. Benefits amounted to 40 to 60 percent of earnings up to a maximum of AS445 per week supplemented by dependents' allowances and were payable for a maximum of thirty weeks, after which emergency assistance might be available. For sickness and maternity insurance, workers and employers contributed 2.4 to 3.65 percent of earnings up to AS67,200 maximum annual earnings. Benefits amounted to 50 to 75 percent of earnings, depending on the number of dependents, for up to twenty-six weeks. Maternity benefits for workers or wives were 100 percent of earnings for six weeks before and after confinement plus a maternity grant of AS1,000. Postmaternity allowances could continue for twelve months, at which time a mother could resume her former job if she chose. Sick benefits also provided the costs of medical care, hospitalization, and medicines. Dependents received the same benefits in case of illness, but 10 to 20 percent of the costs of hospitalization had to be shared by the worker. Temporary disability for injuries suffered on the job carried the same benefits as sick leave. If a worker were totally and permanently disabled on the job, he was paid 66.6 percent of earnings plus 10-percent dependents' supplements. Since 1948 all social insurance beneficiaries, including all employed and self-employed persons, and assistance recipients have been paid family allowances. Employers contributed 6 percent of their payroll to this fund, and the government made up the difference. As of 1972 eight of the monthly payments allowed AS270 for one child, AS600 for two, AS1,065 for three, AS1,425 for four, AS1,815 for five, and AS390 each for all others. The other four monthly payments were 150 percent of these rates. In addition AS2,000 was granted at each birth. To pay for all of these benefits employers had to contribute a total of from 18.4 to 21.4 percent of their payrolls. Employees had to contribute 11.9 to 13.4 percent of their earnings. Income tax took another share of earnings. For example, a single man who earned AS5,000 a month paid 14.75 percent in income tax. If he was a married man with one child, he paid 7.2 percent. For this wage level, the total deduction from pay would have been around 20 to 28 percent, depending on the number of dependents. More concessions that made life easier and more secure for Austrians were small monthly housing allowances (AS30) for workers, AS15,000 cash payments to newlyweds, and free books, lunches, and transportation for schoolchildren. Paid vacations were from eighteen to thirty days a year depending on the length of service. Raises were given at two-year intervals in both the civil service and private companies; Christmas and other bonuses, as well as merit payments for long and distinguished service, were common. Another generous practice was supplementing the income of civil servants by paying them a thirteenth and fourteenth month's salary. Health Health care is generally excellent. In 1973 more than 90 percent of the people were covered by some plan of health insurance. Distributed throughout the country were 323 hospitals with 80,000 beds. Among these were general hospitals, children's hospitals, sanatoriums, and numerous other specialty hospitals. Austria's many thermal springs have been enjoyed by health enthusiasts since Roman times. There are 200 health resorts, 110 of them spas, where people come from all over Europe to relax and convalesce. Doctors have always been in adequate supply and well respected, especially in Vienna. The nearly 14,000 doctors in the country in 1973 were in a favorable ratio of one doctor to every 533 people, compared with one to every 634 people in the United States. Because more than one-third of Austrian doctors are specialists, however, there is a shortage of general practitioners, particularly in the countryside. Many of the rural Alpine areas are remote from health care. Despite visits to these areas by traveling clinics, there may be no nearby facility for handling emergencies as they occur. Another problem has been the shortage of nurses and paramedical personnel. There were 25,000 nurses and paramedics in Austria in 1973, fewer than two for every doctor. Life expectancy has increased dramatically in the twentieth century. In 1900 it was only 39.1 years for men and 41.1 years for women. As in other modern countries, heart and other circulatory diseases and cancer have been the most common causes of death. Respiratory diseases, pneumonia, and cirrhosis of the liver kill several thousand people each year. Traffic deaths and other fatal accidents are common. Austria's suicide rate is high-33.3 per 100,000 of the population for men and 14.5 per 100,000 for women in 1972. The incidence of some important infectious diseases has been greatly reduced-diphtheria, tuberculosis, poliomyelitis, and scarlet fever are no longer common. Housing Housing has been a problem throughout the twentieth century, but it is a problem that the government has made considerable efforts to solve. The large-scale public housing projects that were constructed in Vienna after World War I and after World War II attracted worldwide attention as the first ventures in modern municipal housing. These projects contained between 400 and 1,600 units each and eventually accommodated over 250,000 Viennese. Many of the blocks that were built during the 1920s, such as the well-known Karl Marx Hof, are still in use. Between 1945 and 1966 over 90,000 new units of housing were constructed by the city of Vienna. New districts have been added to the city, and more expansion was planned for the opposite side of the Danube. Other cities in Austria have followed Vienna's lead and established public housing projects. After the 1922 Housing Control Law was passed, rent controls were established, which froze most rents at levels that had hardly changed up to the mid-1970s. The average urban family spends only about 5 percent of its income on rent. Most rents are so low that they barely cover the maintenance costs of dwellings, and they are not a source of funds for new construction. The restrictions of the 1930 Building Regulations have stifled most private, profit-oriented investment in building. In effect, the government concern for its citizens has been self-defeating. New revenue for construction must be gleaned from other sources, notably taxation, and cannot adequately supply the demand for new housing units. In Vienna the small population growth has prevented shortages of housing from being more serious than they are. The poor housing situation, however, has contributed to the slow growth because young people frequently leave the city. The low-rent housing is generally in poor condition and sometimes without adequate plumbing facilities. Nevertheless, the number of these units is not adequate to meet the demand. Those who desire more comfortable quarters must pay very high rents in housing that is not rent controlled. In 1971 Chancellor Kreisky charged that 2.8 million Austrians were living in dwellings that did not meet modern standards. More than half of the dwellings in Austria were built before 1920. Around 25 percent were built before 1880. These older dwellings are less likely to have modern conveniences-88 percent of dwellings in 1972 had running water, and 73 percent had indoor toilets. After World War II a spurt of new building took place, especially in the western part of the country. The highest percentages of new dwellings have been built in the provinces of Salzburg and Carinthia. More than 40 percent of the total dwellings in Klagenfurt and 60 percent of the dwellings in Wels and the area surrounding Linz in Upper Austria are of postwar construction. Vienna and Lower Austria have the lowest percentage of new dwellings, only 16 percent each. In 1972 there were about 2.5 million household units, with an average of three persons per household. In rural areas the average dwelling had 4.5 rooms and about five persons per household and in urban areas, 3.7 rooms and an average of fewer than three persons. In accordance with the standard of living and the larger family size, houses are generally larger in the western sections of the country than in the east. Half of the houses in Vorarlberg had four or more rooms, whereas in Lower Austria only 9 percent had four or more. One- and two-room flats (not including kitchens) predominated. In Vienna only 6.3 percent of dwellings were one- or two-family houses. Half of all dwellings in the country had what would be considered a comfortable ratio of occupants to rooms, that is 0.5 to 1.5 per room, while 11 percent were excessively crowded, with more than three to a room. Graz, Klagenfurt, and Linz, despite the large percentage of new building, were still most likely to have crowded conditions. In 1972 dwellings were owned by 49.4 percent of households and rented by 45.1 percent. Two-thirds of all dwellings were owned by private individuals or companies but, of those built since World War II, only 57 percent were privately owned. Local governments owned 19 percent, and nonprofit building societies owned 18 percent of all dwellings. Living Standards In the late 1960s and early 1970s wages increased steadily, and the hours of work decreased. In the manufacturing sector in 1974 wages were nearly 2 1/2 times what they had been in 1964. In all sectors of the economy wage increases kept well ahead of price inflation, which was about 40 percent over the same period. Average monthly wages in 1972 were AS5,740 in the overall nonagricultural sector, AS5,912 in manufacturing, and AS3,612 in agriculture. The average wage in manufacturing for the month of June 1974 was AS8,540. Agricultural wages lagged behind wages in other sectors, but costs of food and housing were lower in rural areas. As of January 1975 the maximum workweek was limited by law to forty hours. Many Austrians worked a considerably shorter week, however, and the actual workweek averaged only thirty-six hours. At least eighteen working days annually were guaranteed as vacation days. The number of consumer durables has increased dramatically since the 1950s. In 1971 there were 227 refrigerators, 125 washing machines, 332 radios, 213 television sets, and 207 telephones for every 1,000 inhabitants. More and more people have been able to buy cars. At the end of 1972 there were 1.5 million private automobiles, or 200 per 1,000 inhabitants. Incomes in Austria go further because of the low cost of housing. According to an official survey made in 1964, urban households spent an average of only 3 percent of their income on rent. Rural households spent only a negligible amount. By 1972 the average proportion for all households was still low, only 5 percent. Other expenditures, such as maintenance, furnishings and household items, and utilities, brought the total average expenditure for housing up to more than 20 percent of the total budget (see table 4). The largest percentage of expenses for Austrian households was for food. Austrians like good food and, if necessary, are willing to sacrifice most other commodities in order to put meat on their tables. The quality and variety of the food they eat have improved with the rise in wages. Since World War II consumption of milk, wheat, and potatoes has dropped, and consumption of pork, poultry, and eggs has increased. At the same time the percentage of the budget that must be spent for food had dropped to 30.5 in 1972. Urban households are likely to enjoy a greater variety of foods than farm households. The traditional fare in rural areas was a thick soup, accompanied by black bread saturated with butter or bacon fat. Dairy products and eggs continue to be important items in the diet, while pork has become more popular as living standards increase. Urban families generally eat a greater variety of meats, such as beef, chicken, and fish. Milk and eggs are not as important in their diets, and bread and butter are not such a staple of their meals. Leisure Austrians are noted for their Gemutlichkeit (good spirits and devotion to the "good life"). The hospitality and abundance of recreational and cultural activities in their country have been a great attraction for tourists. The Alps offer all sorts of winter and summer sports, and Vienna and Salzburg are capitals of music with perennially full concert halls and theaters. [See Table 4.: Austria, Expenditure by Average Household, 1950, 1960, and 1970 (in percent)] In both cities and villages, taverns (Gasthauser) and coffeehouses are the centers of social life. Austrians enjoy relaxing and meeting their friends or spending an afternoon reading the daily newspapers at these establishments. In taverns and Heurige (inns where new wine is served) Austrians while away the evening hours over their wine or steins of beer. During the day they may go to pastry shops to drink coffee and eat pastries smothered in whipped cream. In summer outdoor beer gardens are popular. The Austrians are proud of their countryside with its dramatic Alpine scenery. Much of their leisure time is spent outdoors. Throughout the year, especially in the summer, those who live in urban areas take day or weekend trips to the mountains and lakes. In Vienna, where the Alps are more remote, city planners have been careful to preserve parks. Here officeworkers eat their lunch, mothers watch their children, and whole families take their evening walks. Expansion has skirted the famous Vienna Woods along the Danube, leaving them for the Viennese to take their excursions. Inside the city limits is the Prater, a huge amusement park with restaurants, gardens, and sports facilities. Soccer is the nation's most popular sport. When not participating in the sport themselves, Austrians follow the activities of the nearly 2,000 soccer clubs. They bet in soccer pools and attend matches in the many stadiums, such as the 72,000-seat Vienna Stadium. Other favorite leisure-time sports are handball, basketball, and tennis. Swimming in the many public pools, golf, sailing, and cycling are also popular, along with the more daring sports, such as sky gliding and mountain climbing. It is the winter sports, however, that have attracted so many tourists to the country, and the Austrians themselves have taken up skiing, ice-skating, and tobogganing in increasing numbers. Ski resorts offering inexpensive rates are everywhere in the mountains. Innsbruck was the site of the Winter Olympics in 1964 and will be host to them again in 1976. Austrian athletes have won medals in figure skating, skiing, and bobsledding. A favorite pastime of Austrians in rural areas is the observance of old traditions. Partly to please tourists and partly for the enjoyment of it, traditional costumes, dances, and celebrations are still important. Holidays and weddings are the occasion for donning the locality's typical peasant costumes, the most characteristic of which are the women's dirndls and the lederhosen (short leather pants) of the men. Traditional peageants may be acted out, followed by the traditional peasant dances. These celebrations are mostly peculiar to the rural regions. Music festivals, such as the Salzburg, Graz, and Vienna festivals, are the special occasions in the cities. Most of the national holidays are associated with the religious calendar. There are no patriotic holidays. The first holiday after New Year's Day is Epiphany on January 6. This marks the beginning of Fasching, the long celebration that does not end until the beginning of Lent. Fasching is the occasion for special costumes and dances, such as the schuhplattler, and for church festivals in the countryside and balls in the cities. The other ten Austrian holidays are Easter, Labor Day on May 1, Ascension, Whitmonday, Corpus Christi, the Feast of the Assumption on August 15, All Saints' Day on November 1, the Feast of the Immaculate Conception on December 8, Christmas, and Saint Stephen's Day on December 26. Leisure-time activities that Austrians share with other modern Europeans include watching television and listening to the radio. There are approximately 225 television sets and 290 radios for every 1,000 people. Motorcycle and automobile races are popular, and those who have cars enjoy taking motor trips. Young people dance to rock music in nightclubs; the more staid like to play bridge at home or in coffeehouses. Austrians are inveterate club joiners; there are one or a multitude for every conceivable hobby, special interest, or sport.