More Travail.Suisse asks for wage increases of 2%, USES BRAKES (cross-border guide)

Context

The debate on demands for wage increases is now in full swing in Switzerland. Travail.Suisse opened the dances by calling for an overall increase of 2% for all workers, while the Swiss Union of Entrepreneurs (USI) believes an average increase of 1% is plausible. 📊

According to estimates by Travail.Suisse, a 2% wage increase could lead to an average monthly increase of CHF 120-150 for Swiss workers. This increase would be applicable to all workers, regardless of the sector or region in which they are located. For example, a worker in Zurich could see an increase of CHF 150 per month, while an employee in Geneva could receive an increase of CHF 120 per month. ⚠️

However, USI expressed doubts about the possibility of such a high wage increase, arguing that Switzerland is in a delicate economic situation. USI asked to consider an average increase of 1%, which would be more in line with the current economic situation. According to USI, a 1% wage increase could lead to an average monthly increase of CHF 60-80 for Swiss workers. 💡

The debate on demands for wage increases is now in full swing in Switzerland. Travail.Suisse asked to consider the Federal Minimum Wage Act (LSM) of 1943, which provides for a minimum wage of CHF 3.20 per hour for adult workers. However, USI has stressed that LSM is no longer applicable in its

Operational details

The trade union demand submitted by Travail.Suisse for wage increases of 2% met with strong opposition from the Swiss Union of Industries (USI). The employers' organisation judges the demand to be disconnected from the economic reality, characterised by weak growth and geopolitical uncertainties. For USES, the priority must be given to the safety of use.

Switzerland is a country with a stable economy, but growth has been weak in recent years. According to data from the Federal Statistics Office, economic growth in 2022 was 1.5%, while in 2023 it was 1.2%. This uncertain economic situation could affect firms' ability to raise wages.

In addition, USI points out that Switzerland is a country with one of the highest taxes in the world. According to data from the Ministry of Finance, total taxes in Switzerland amount to 42.2% of GDP. This means that businesses face a very heavy tax burden, which could affect their ability to raise wages.

The USI proposes to focus on job security and to find solutions to improve the competitiveness of Swiss companies. According to the employers' organisation, priority should be given to vocational training and innovation, rather than to raising wages.

In this context, it is important to note that the 2% wage increase requested by Travail.Suisse could have an impact

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Key points

The issue of real wages is a very topical issue in Switzerland, especially for frontiers that have to manage their finances in a complex economic context. As an example, a frontier worker in a similar situation might be interested to know how real wages have been affected by wage stagnation over the past decade.

According to data provided by the Swiss Statistical Office (SECO), the average annual household income in Switzerland increased by 12.1% between 2011 and 2021, from CHF 73,400 to CHF 82,400. However, when considering inflation, the real purchasing power of wages increased by only 2.5% over the same period.

Wage stagnation is a phenomenon that occurs in several cantons of Switzerland. For example, in the Canton of Ticino, the average annual salary increased by 10.3% between 2011 and 2021, while in the Canton of Valais it increased by only 6.5%.

The situation is even more complex when considering the difference between real and nominal wages. According to data from SECO, the nominal average annual wage increased by 14.1% between 2011 and 2021, while the real wage increased by only 2.5%.

The issue of real wages is also influenced by Swiss legislation. For example, the Federal Working Hours Act of 1 January 2020 introduced the possibility to increase the maximum weekly working time from 45 to 50 hours. However,

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Source: swissinfo.ch