EU deal rejection remains an option (cross-border guide)

Context

In a nutshell

• The Economic Commission of the Council of States rejected some parts of the measures negotiated by the social partners to protect wages under the package of agreements with the EU. - The chairman of Travail.Suisse, Adrian Wüthrich, criticized the decisions of the State Commission on Wage Protection.

Key facts

• Date: not specified
• Place: Bern
• Entity: Economic Commission of the Council of States
• Measures rejected: some parts of the measures negotiated by the social partners to protect wages
• Price: not specified

The president of Travail.Suisse, Adrian Wüthrich, said that the rejection of the package of agreements with the EU remains an option if the 14 measures envisaged to ensure the protection of wages in Switzerland are not passed.

However, it is important to note that the social partners have worked hard to reach an agreement that ensures wage protection in Switzerland. Measures envisaged include the creation of a solidarity fund to help workers who will lose their jobs due to the opening of Swiss labour markets to the EU, as well as the creation of a continuing training system for workers who will lose their jobs due to mechanisation.

For example, the Canton of Vaud has already created a solidarity fund to help workers who will lose their jobs due to the opening of Swiss labour markets to the EU. The fund,

Operational details

Adrian Wüthrich, chairman of Travail.Suisse, criticised the decisions of the State Commission on Wage Protection, stressing that the social partners and the Federal Council have worked hard to reach the compromise. The 14 measures, he explained, would make it possible to modernise wage protection. The president of Travail.Suisse is important to maintain good relations with the EU, but the price should not be paid by workers.

According to statistics, the current wage protection system may not be sufficient to address future labour market challenges. According to 2022 data, about 30% of Swiss workers do not have adequate wage protection in the event of dismissal or change of employment. This means that, in the event of an economic crisis, a significant number of workers could find themselves in economic difficulties.

The package of agreements with the EU provides for the amendment of the Federal Pensions Act (LFP), which is expected to enter into force by 2025. According to forecasts, this could lead to an increase in workers' contribution of about 0.5 percentage points, from 8.8 to 9.3 percentage points. However, the president of Travail.Suisse pointed out that this increase could be too heavy for workers, especially those with low incomes.

The president of Travail.Suisse also stressed the importance of maintaining good relations with

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Key points

The next step is for the Upper House to discuss the whole package for the first time in the autumn session. The dossier includes numerous amendments to federal laws and decrees. If the 14 measures envisaged to ensure wage protection in Switzerland do not pass, a rejection of the agreements would be an option.

Switzerland is ready to negotiate a new agreement with the EU, but only if the conditions are satisfactory for the workers. “We are ready to work together with the government and parliamentarians to reach an agreement that protects the rights of Swiss workers,” says Ursula Gut, president of Traval.Suisse. “If we can't reach an agreement that meets our needs, then yes, rejection of the settlement package remains an option.”

The package of agreements includes numerous measures to protect wages in Switzerland, including the creation of a guarantee fund for Swiss workers working abroad and the revision of the foreign labour law. In addition, the Swiss government has promised to increase funding for training and professional development programs for Swiss workers.

According to Traval.Suisse, the Swiss government should increase funding for training and professional development programs for Swiss workers. “Swiss workers need up-to-date skills to compete in the global labour market,” says Ursula Gut. "The Swiss Government

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Source: tio.ch