VIENNA — Austria is preparing to intensify its fight against social fraud, with Finance Minister Markus Marterbauer vowing decisive action, reported by News web 5 Minuten. The move, aimed in part at easing pressure on the nation’s strained budget, is expected to generate an estimated €270 million in additional revenue, according to early projections. Details of the reform are currently being finalized.
The announcement has sparked a strong response from the Construction and Woodworkers’ Union (GBH), which welcomed the effort after years of what it calls neglect. “Finally, something is moving,” the union said in a statement. GBH chairman Josef Muchitsch stressed that fraud is deeply rooted in the construction and wood industries, calling illegal labor and sham contracts a daily occurrence. “We see it. We know where the fire is. And now, we can act together,” he said.
Subcontracting chains are accused of systematically masking exploitation, leading to a climate where law-abiding companies are unable to compete, workers are stripped of rights, and tax contributions dwindle—impacting pensions, healthcare, and education.
The GBH places blame on Austria’s previous two governments for cutting inspections, weakening penalties, and failing to close loopholes. The union has laid out a clear list of demands, including more staff for the financial police, harsher penalties, a central registry for contractors, tighter cross-border oversight, and mandatory pre-employment registration for posted workers.
As Austria prepares to confront this long-standing issue, labor advocates say the time for symbolic gestures is over. “Fair competition must no longer be an empty promise. It’s time to act,” the union declared.
