2. The Institutional Preconditions and the Structure of Austrian Corporatism
Researchers agree that Austria displays most of the basic characteristics of the ideal type of
“corporatism” that has been set up in the relevant literature (see, e.g. the corporatism index
by Siaroff 1999). First, in the sense of a formalized structure of the interest representation
system that is characterised by a limited number of singular, compulsory, non-competitive,
monopolized, centralized interest associations benefiting from various organizational and
institutional privileges as classically defined by Schmitter (1979). Second, in the sense of a
particular institutionalised process of policy-formation in which large interest organizations
co-operate with each other and with state authorities, especially in the realm of wage and
labour market policies. These two dimensions of corporatism are closely connected. Specific
structural conditions were considered necessary for the coordination of economic policy. This
structural dimension encompasses the potential for interest representation to the outside as
well as enforcing agreements between associations against internal resistance. However, the
process dimension emphasized that structural conditions alone do not automatically imply the
actual concertation of public policy; what is moreover needed is a basic consent among the
involved actors (Lehmbruch 1979, 1984).
This specific bargaining system, which has also been known as “social partnership” or
“concertation”, is based on a commitment by trade union and business organizations (the so-
called “social partners”) to the pursuit of general economic prosperity instead of
particularistic interests. The (quasi-) monopolistic and highly centralized interest associations
forming the basis of Austrian social partnership are the unitary trade union federation
(Ă–sterreichischer Gewerkschaftsbund, Ă–GB), the Federal Chamber of Labour
(Arbeiterkammern, AK), the Federal Chamber of Business (Wirtschaftskammer Ă–sterreich,
WKĂ–), and the Peak of the Chambers of Agriculture. Whereas the Chambers are compulsory
interest organizations established by law, the Ă–GB is a voluntary organization. The trade
union mainly deals with workers’ immediate interests and represents them vis-à -vis
employers, while the Labour Chamber is the provider of expert information for trade union
policy and its main representative function is vis-Ă -vis the state.
Parallel to the WKĂ–, the voluntary Federation of Austrian Industrialists (Vereinigung
Ă–sterreichischer Industrieller, VĂ–I) representing large private firms, exists as the most
important voluntary association on part of business. The WKĂ– is representing business in the
collective bargaining process and represents capital, together with the Chambers of
3
Convention