Travail Suisse wants to overcome purchasing power crisis with higher wages
Published: Monday, Aug 19th 2024, 10:10
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The employees' umbrella organization Travail Suisse is calling for significant wage increases of up to 4 percent for the coming year. This is intended to overcome the purchasing power crisis. According to the association, the rising cost of living is putting a strain on employees.
The purchasing power of employees has been massively weakened due to the historically weak wage development, Travail Suisse and its associations announced at their media conference in Bern on Monday. Real wages have fallen by more than 3 percent, although the economy has grown by more than 7 percent in real terms since 2021. "There is therefore an urgent need to catch up on wages," Thomas Bauer, Head of Economic Policy at Travail Suisse, was quoted as saying in the press release.
Despite the economic recovery and rising productivity, real wages have fallen for three years in a row for the first time in the post-war period. They are now at the same level as in 2014. In addition to general inflation, employees are confronted with sharply rising living costs such as health insurance premiums and housing costs.
It is unacceptable that employers are keeping the productivity gains for themselves. "Employees have earned these gains and need higher real wages to cover the rising cost of living," said Yvonne Feri, President of the Syna trade union, in the press release.
To overcome the purchasing power crisis, Travail Suisse and its associations are calling for significant wage increases of up to 4 percent. The conditions for this are good. The economy is recovering and the price pressure on companies is decreasing.
Lower wages despite labor shortage
Most sectors are facing a shortage of labor. Employment has risen sharply and many companies are "desperately" looking for employees, the report continued. However, although employees are working "to the limit", they have lost purchasing power instead of earning more.
The situation in the healthcare sector remains difficult. Staff are under pressure. In order to stop the "Pflexit" in the healthcare sector, measures such as "substantial" wage increases and collective employment contracts are therefore needed.
In the retail trade, meanwhile, there is a considerable wage gap across the entire sector. And in the construction industry, the Swiss Association of Master Builders has insisted on a zero increase for construction workers and has broken off wage negotiations. However, Syna will not accept any further stagnation, but is demanding a general wage increase of CHF 250 per month.
"Unacceptable real wage losses"
Employees in the public service sector continue to face considerable challenges and the real wage losses are unacceptable. Once again, the staff association Transfair has not been able to compensate for inflation in any sector.
The real wage losses are particularly serious in the federal administration and at Swiss Post and "undermine the purchasing power of employees". Transfair is therefore demanding full inflation compensation for 2025 as well as retroactive compensation for the inflation accumulated in previous years. This would result in wage demands of between 2.5 and 4 percent.
Wage negotiations in the hospitality industry failed
Wage negotiations in the hospitality industry have already been concluded with sobering results. Despite the good economic situation, the record year 2023, positive prospects for 2024, a lack of workers and young talent as well as attractiveness and image problems, the employers' associations are not prepared to pay all employees a living wage and raise minimum wages accordingly.
Many employees are on the lowest minimum wage level. This is very low at 13 monthly wages of CHF 3666. However, the minimum wage negotiations in the hospitality industry have failed. In view of the uncompromising stance, the arbitration court will now be called upon to determine the minimum wages in the Swiss hospitality industry, the press release stated.
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