A Lesson from Austria: What a Working Industrial Democracy Looks Like

A Histadrut delegation visited Austria to study the Austrian model of industrial democracy, where 98% of workers are covered by collective agreements and one-third of board members in large companies are worker representatives. The model is based on cooperation between unions, employers, and the state, providing economic stability and protection of workers' rights.

A delegation of the Histadrut, led by Tomer Reznik, Deputy Chairman of the Histadrut and Chairman of the Industrial Democracy Division, and including Adam Blumenberg and Miki Drill, visited Austria to learn about the Austrian model of worker participation in decision-making. The model, enshrined in law since 1919 and updated in 1974, results in 98% of workers being covered by collective agreements, and in companies with over 100 employees, one-third of board members are worker representatives. Negotiations are conducted at the industry level, involving the Chamber of Employers and the Chamber of Labor – an institutional body funded by workers that provides representation and legal assistance. Worker representatives on boards receive strategic information about the company's situation, strengthening the committee's ability to conduct professional negotiations and deepening the sense of belonging. Minister Corinna Schumann and ÖGB President Wolfgang Katzian emphasized that the partnership is seen as a safety net for economic stability and growth. The conclusion: Israel can learn from the Austrian model, especially given the structural similarity between the Histadrut and the ÖGB.