2027 Budget: Unions challenge austerity and the rising cost of living

Context

In Brief

• OCST, VPOD, and SIT are calling for a “change of course”
• The cost-of-living adjustment for staff is set at 0.25%
• 10% of departing staff would not be replaced
• Criticism also directed at USI, SUPSI, and public schools

Key Facts

• Subject → 2027 Budget
• Unions → OCST, VPOD, and SIT
• Cost-of-living adjustment → 0.25% for cantonal staff
• Departing staff → 10% will not be replaced
• Contributions → USI and SUPSI
• Related content → 3.7% increase in health insurance premiums in Ticino in 2027

OCST, VPOD, and SIT are challenging the cost-cutting measures contained in the 2027 Budget presented by the State Council. The three unions are calling on the government and parliament to “change course,” abandon the cuts, and guarantee full compensation for inflation.

The unions reserve the right to conduct a more in-depth analysis of the budget, but they already view the document as a continuation of the spending restraint policy of previous years. Their criticism centers on the potential impact on public services and working conditions.

The Contested Points

The first area highlighted is the social and health care sector. Funding would be reduced while, according to the unions, the need for care continues to rise. For subsidized organizations, the reduction in funding would limit their ability to adjust staffing levels and services. The feared result is increased pressure on staff and greater difficulty in ensuring care.

A second issue concerns the failure to replace 10% of departing staff. This measure has already been approved by the Grand Council over a three-year period. However, OCST, VPOD, and SIT object to an implementation that does not take into account the needs of individual services: in their view, workloads would increase and staff conditions would worsen.

The budget also provides for a 0.25% cost-of-living adjustment for cantonal staff, with knock-on effects for various subsidized employers. For the labor unions, this percentage is insufficient given the projected inflation rate and does not make up for what was not granted in previous years. The demand therefore also includes compensation for past inflation, to prevent a further loss of purchasing power. This issue directly affects costo della vita in Svizzera, though it remains subject to a cantonal decision.

Other measures cited include reduced contributions to USI and SUPSI, cuts to the Red Cross, a lack of investment in public schools, and a reduction in staffing at the Police Academy. The unions are also looking ahead to the coming years and calling for greater investment in public and quasi-public services, with funding commensurate with the needs of the population.

Operational details

What This Means for Workers

The text links three factors that, in practice, have different effects: funding for organizations, staffing levels, and adjustments for the cost of living. Reading each item in isolation risks missing the connection highlighted by OCST, VPOD, and SIT. Reduced funding may limit the ability of subsidized agencies to adjust staffing levels and services; staff replacements implemented without considering individual services may increase workloads; and a 0.25% adjustment may not fully offset past inflation, according to the unions.

The Before-and-After Comparison

The comparison with previous years primarily concerns the continuation of the spending restraint policy and the failure to compensate for inflation. The 2027 Budget proposes a 0.25% increase, while the unions are demanding full compensation, including for past inflation. The key point to note, therefore, is not just the nominal increase: it is the gap between what is projected and what the unions deem necessary to prevent a further loss of purchasing power. For cantonal employees—and for various subsidized employers—this change can also be tracked on their own busta paga svizzera form, without converting the percentage figure into amounts not specified in the source.

The timing should also be viewed from two perspectives. The decision not to replace 10% of departing staff is a measure already approved by the Grand Council to be implemented over three years; the objection concerns the risk that its implementation may not take into account the needs of individual departments. Separating the decision from its implementation helps explain why the unions are focusing on workloads and staff conditions—not just cost savings.

A Figure Not to Be Confused

The 3.7% mentioned in a related headline refers to the increase in health insurance premiums in Ticino for 2027. This is not the 0.25% cost-of-living increase projected in the budget: the first figure pertains to health insurance funds, while the second concerns cantonal staff and, by extension, various subsidized employers. Making this distinction prevents the addition of two percentages referring to different issues and allows for a correct interpretation of the comparison regarding the cost of living.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

How to Review the Report

To turn the 2027 Budget Proposal into a concrete analysis, it is best to follow a simple sequence and stick to the categories listed in the source.

Four Key Areas

1. Start with the document presented by the State Council and divide your review into four areas: social and health care, personnel, cost of living, and other contributions or investments. The last area includes USI and SUPSI, the Red Cross, public schools, and the Police Academy.

2. Separate budgetary measures from decisions that have already been adopted. The decision not to replace 10% of departing staff was approved by the Grand Council over a three-year period. The key point to monitor is therefore its implementation within individual departments, which the unions are asking not to be handled without considering specific needs.

3. Consider the 0.25% figure in conjunction with the request for full compensation for inflation, including past inflation. This figure applies to cantonal staff and, by extension, to various subsidized employers.

4. Distinguish this issue from the related matter of health insurance funds: the 3.7% figure indicated for 2027 in Ticino is not the cost-of-living adjustment percentage in the budget. Keeping the two plans separate avoids confusion regarding the cost of living.

The political development to monitor is the debate requested by the unions from the government and parliament. Their message is to abandon cuts in the social and health care sectors and the non-replacement of some staff, increase investment in public and quasi-public services, and align funding with the needs of the population. The same unions have reserved the right to conduct a more in-depth analysis of the budget: this is the step recommended by the source for evaluating individual measures.

To track the impact on personal income and understand the components of a Swiss salary, use calcolatore stipendio.

Source: tio.ch