Federal Council attacks cantonal minimum wages against its will
Published: Wednesday, Jan 24th 2024, 11:30
Updated At: Wednesday, Jan 24th 2024, 11:31
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Collective employment contracts declared generally binding should take precedence over cantonal law regarding minimum wages, 13th month's pay and vacation entitlement. This is what Parliament is demanding. The Federal Council has now drafted a consultation draft against its will.
To implement the motion by Council of States member Erich Ettlin (center/OW), which was passed by both chambers, the Federal Council is proposing an amendment to the Act on the Declaration of General Applicability of Collective Employment Agreements (Aveg), as it announced on Wednesday. According to this, provisions on minimum wages in collective employment contracts (CECs) should be able to be declared generally binding, even if they contradict mandatory cantonal law.
If the bill is implemented, cantonal minimum wage provisions confirmed by the people - for example in the cantons of Geneva, Neuchâtel and Jura - will become null and void if the Federal Council has declared the CLA to be generally binding in the relevant sectors. The CLA provisions would then apply. Today, a CLA may not contradict mandatory federal and cantonal law.
Ettlin justified his motion with the need to protect the social partnership from "controversial interventions". The supporters of the motion argued in parliament that the social partnership has ensured industrial peace in Switzerland for over a hundred years. Today, the problem is that although CLAs agreed by the social partners are declared generally binding for the whole of Switzerland by the Federal Council, they can be undermined by cantonal regulations.
Trade unions announce resistance
However, the Federal Council is calling on parliament not to approve the bill, as it believes it violates several basic principles of the Swiss legal system - such as the division of powers between the Confederation and the cantons and the principle of legality, according to a statement. A generally binding CLA does not enjoy the same democratic legitimacy as a cantonal law.
The idea was already controversial in parliament. In the National Council, Ettlin's motion only passed the hurdle by a wafer-thin margin in December 2022. In the end, a conservative majority prevailed in both chambers.
The Left argued that democratically made decisions should not be circumvented. This was a frontal attack on cantonal sovereignty. The Swiss Federation of Trade Unions (SGB) announced a year ago that it would "fight the bill with all necessary means and defend the cantonal minimum wages".
Transparency in joint commissions
With this bill, the Federal Council wants to implement another motion that was passed by Parliament. Specifically, all employers and employees who are subject to a generally binding CBA and pay contributions to the implementation costs for this CBA are to be granted the right to inspect the annual accounts of the joint committees free of charge.
The consultation period lasts until May 1.
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