Two hearts, one chest

The ORF contacted us that morning for an interview to feature on the evening news. The topic under discussion: Increasing wages, rising costs, and the Bachmann response. 

Gabriel Schwanzer, member of the Bachmann executive board, addressed these issues frankly while explaining the complexity of the current situation.

"On the one hand, we have our employees, who are being confronted with an ever-increasing cost of living; on the other hand, we are experiencing exorbitant increases in production costs, which threaten to eliminate our competitiveness on the international market – and with it, the foundation of our business. This is a dilemma not only for Bachmann, but for many companies in Vorarlberg," said Gabriel Schwanzer. "There are two hearts beating in our chest: we have a deep sense of our duty to provide a strong, stable source of income for Bachmann’s employees, enough to maintain a good quality of life in Vorarlberg. But to do this, we need to safeguard our operations – no production facility has a secure future without a healthy business – that’s a fact," continued Schwanzer.

As the conversation progresses, it becomes clear that our collective future is no longer a question of employee and employer: According to Schwanzer, this is a long-outdated idea that both camps are clinging onto. In fact, it is a question of cooperation. As every modern company knows, now more than ever, employees are its most valuable asset. They are the driving force behind every company as it strives for a strong, sustainable future. The markets, domestic or international, are the company’s arena – and the company must act with purpose and foresight. The smallest mistake could jeopardize a business, or even lead to its downfall. And the only way to overcome these challenges is through cooperation and collaboration.

Significant cost increases for components and parts, extreme shortages of skilled workers, and challenges in global logistics are set against significant increases in housing and energy costs nationwide. Essentially, the challenge is that these factors affect different levels and different areas of life, with no direct connection between them. Consequently, for an international operation, cost increases can only be passed on to customers until global increases in component and logistics costs have leveled out. To counteract local price increases, sales prices would have to be increased once more, which would render our products too expensive for the international market: And international competitiveness is the basis of our business.

Manufacturing practices vary from country to country: The cost of living is also increasing in the Far East and other low-wage regions, which should lead to global price increases. Or at least, that’s the logic. But the reality looks quite different. In these locations, the population is often left to bear the brunt of rising costs, and quality and environmental standards are often neglected. As a result, it can take years or even decades for those regions to feel the impact of local price rises. And by then, we would no longer be competitive. In the worst case, would no longer be in business.  

The solution is cooperation: Not only between employees and employers, but politicians as well – and as a matter of priority. Governments must provide meaningful relief to support, rather than undermine, the required cohesion between firms and their staff. Whether in the housing market or energy costs, whether in the tax budget or social benefits – there are many areas where urgent action has been required for a number of years, but where politicians are still afraid to make unpopular decisions. All of us, employees and employers alike, must pull together – instead of looking back at the prosperity of previous years and refusing to adapt. Only together will we be able to navigate through these challenging times with secure and forward-thinking momentum.