Harald Mahrer, President of the Austrian Federal Economic Chamber (WKO), apologises for the wage explosion his management has caused. He expresses his regret, opens his salary accounts and calls for ”a great sense of responsibility”. But this is where he is seriously mistaken: he has no responsibility at all. His performance is a perfect illustration of the Austrian political-economic bubble, where leaders live like princes – without any real responsibility for results.
A bubble that pays with other people’s money
When the WKO pay increases were announced, a 4.2% increase was planned for line staff. Instead, the management level was rewarded with increases of up to 60% in certain departments, such as the Tyrol. Mahrer’s own salary will rise by 21% – due to a ”system change”, of course. His explanation that it was a ”necessary reform” is travesty at a time when companies are struggling with inflation and recession.
Mahrer’s apology – ”I made mistakes. I’m sorry.” – sounds more like a joke than anything else. At the same time, when he reveals that he earns €28 500 a month, or around €342 000 a year, the ”responsibility and risk” explanation starts to fall flat. In the private sector, mistakes result in dismissal or legal action, while the Austrian political elite fails time and again – and gets richer in the process.
Consultant without real evidence
Mahrer has never built anything concrete. He was a communications consultant and PR manager whose most notable ”achievement” was to be the image-builder for Hypo Alpe Adria – a bank that collapsed in the biggest financial scandal in the country’s history, leaving taxpayers with a bill of billions. He even campaigned against a supervisory authority that could have prevented the disaster.
Yet he survived without any consequences. Soon he became Secretary of State, then Minister and finally Director General of the WKO. No charges, no payback – just a new, better-paid post. In the private sector, this would be impossible. In public Austria, it is commonplace.
Fortress of bureaucracy
The WKO is a perfect example of the bureaucratic absurdity of the country. It is funded by compulsory fees that businesses have to pay, whether they need the Chamber’s services or not. The cash flow is billions of euros every government term – a direct transfer of income from the real economy to the political bubble.
Mahrer leads an organisation that nobody really needs, but which knows how to look after its own. While the real entrepreneurs struggle to survive, the chamber bosses raise their salaries under the guise of ”systemic change”.
No responsibility – only privileges
Mahrer defends himself by pointing out that the private sector pays the same level of wages. True, but that is where performance is measured. Not in the WKO and the entire Austrian political machine. There you are rewarded for loyalty and networks – not for performance.
If Mahrer really believes in his own competence, it would be easy for him to prove it: waive the compulsory membership fees, dissolve the chamber and go into the private sector himself, without any political safety net. Let’s see if we can then find an employer who will pay €350 000 a year for his ’responsibility’.
📚 So urces:
– Die Presse – ”WKO salary increases cause outrage”
– Der Standard – ”Mahrer apologises for salary increase”
– Kronen Zeitung – ”Chamber of Commerce defends massive wage hikes”
– Wirtschaftskammer Österreich (WKO) – official press release on wage and restructuring reform