Swiss Federation of Trade Unions wants to close the wage gap by 2025

Published: Monday, Sep 2nd 2024, 11:20

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According to the Swiss Federation of Trade Unions, wages in Switzerland should rise by up to five percent in the coming year. This corresponds to labor productivity in Switzerland plus inflation.

The wage trend in Switzerland is alarming, according to a media conference held by the Swiss Federation of Trade Unions (SGB) in Bern on Monday. After years of declining real wages, there is a great need for action in terms of wage policy. Despite a good economy, real wages are lower today than in 2019.

It was unacceptable that employees were earning less and less in real terms while productivity was increasing. "This shortfall must now be made up so that the value of work is fairly recognized again," said SGB President Pierre-Yves Maillard according to the speech text. The SGB associations are therefore calling for wage increases of up to 5 percent.

Productivity in Switzerland has increased by 1.5 percent in recent years, said Daniel Lampart, head of the SGB secretariat. In contrast, there is a wage gap of over 5 percent. "Expressed in Swiss francs, the lower and middle salaries would have 300 to 500 francs more monthly salary in real terms if the wage potential had been fully exploited," Lampart said in the press release.

However, wage negotiations were often difficult, despite the good economic situation. The latter is also reflected in the labor market, as qualified workers are in demand.

Minimum wage of 4500 francs

Due to the sharp rise in the cost of living and the inadequate development of wages, substantial wage increases are absolutely necessary, said Unia President Vania Alleva according to the text of the speech. It was "high time" for this. Wage inequalities had also increased further.

In addition to increasing effective and minimum wages by up to 5 percent for everyone, appropriate minimum wages are also needed. "No wages below CHF 4,500 and at least CHF 5,000 for employees who have completed an apprenticeship," says Alleva. In the main construction industry, Unia is calling for a general wage increase and an increase in minimum wages of 250 francs.

A total of five percent more wages should also be paid in industry, partly due to inflation compensation. In the hospitality industry, where wage negotiations have failed, Unia is demanding an inflation adjustment of CHF 100. And in the retail trade, minimum wages should be raised by 200 francs, among other things.

VPOD: Employers are to blame for the crisis

According to the Swiss Association of Public Service Employees (VPOD), there is a considerable need to catch up in areas such as public services. Many cantons and the federal government are behind schedule with cost-of-living adjustments.

Real wages in the public sector have also fallen more sharply in some cases than in the private sector. This is all the more disturbing as the cantons reported a cumulative surplus of CHF 2.2 billion in their income statements in 2023.

"This crisis for employees is more than alarming. And it is the fault of the employers", VPOD General Secretary Natascha Wey told the media. The cantons' coffers are full to bursting. And yet the money is not flowing to the employees.

Complaints about a shortage of skilled workers from employers are questionable. The VPOD wonders what they are doing to remedy the "shortage". "Apparently, higher wages don't pay. They are reluctant to improve working conditions." In order to cover the additional costs of living, "you simply need more money in your wallet", said Wey according to the speech text.

In mid-August, the trade union umbrella organization Travailsuisse demanded significant wage increases of up to 4 percent for the coming year.

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