How could the promotion in Zurich and Winterthur be: “Ultimately, consumers pay the minimum wage”

class=”sc-29f61514-0 jbwksb”>

About 17,000 low-wage people work in the city of Zurich – mainly in building maintenance, gardening, gastronomy and retail. Until now, there was no minimum wage in the canton of Zurich. In Sunday’s vote, two Zurich cities voted for the introduction of the minimum wage: 23.90 francs per hour in Zurich, 23 francs in Winterthur, set according to the poverty line.

For the unions, their vote is a success. “The new minimum wage greatly improves the situation of low-wage workers,” says Serge Gnos (51), co-chairman of Unia Zurich-Schaffhausen. But now the question arises of how to implement the concept. Gnos expects the minimum wage to be introduced from 2024. Now the managers of the two cities are sought.

“It doesn’t need a huge bureaucracy. It makes sense to build on existing structures,” explains Gnos. Random checks are planned to monitor the minimum wage. Even today, wages are under control. “Minimum wage is controllable,” says Gnos. It is unknown what awaits those who break the rules.

Cut jobs or raise prices

But who funds the minimum wage? “Companies can pay minimum wages themselves in the form of lower profits. But this is unlikely », explains Michael Siegenthaler (38), labor market expert from the ETH Zurich Center for Economic Research (KOF). Or low wages may be rising more than higher wages.

There is also the risk of companies leaving low-paying jobs. “But this fear is often unfounded,” says Siegenthaler. “Consumers are more likely to pay the minimum wage.” Because the affected sectors will likely increase prices – albeit only moderately.

Critics warn that companies are relocating to exceed the minimum wage. Specifically: A pizza courier leaves for Dübendorf ZH. And it supplies its customers in the city of Zurich from there. “But that must be a small part of the city that is not tied to the workplace,” says Siegenthaler. The union does not expect the minimum wage to have a negative impact on the labor market.

Because: In the city of Zurich, the minimum wage is not about where the company’s headquarters is located, but where the majority of the work is done. This is a new approach. An example: A service worker from Thurgau is entitled to CHF 23.90 per hour if he works mainly in the city of Zurich.

With the new arrangement, a Starbucks employee in the city of Zurich will also have a higher hourly wage than a Starbucks employee in Aarau. “But there is already disparity between regions,” says Siegenthaler. Reaching all companies can be difficult. “It will be difficult to determine which out-of-town companies do most of the work in the city of Zurich,” says Siegenthaler.

more may come

Individual fields are exempt from the minimum wage: internships of up to twelve months, those participating in integration programs and those under the age of 25 without a professional certificate. This is why Michael Siegenthaler fears that certain temporary positions will be offered as internships in the future to avoid paying the minimum wage.

The civil party announced that it will take legal action. The concept is not new: the cantons of Geneva, Neuchâtel, Basel-Landschaft and Basel-Stadt already have minimum wages. “It’s about people. You forget that quickly,” says Gnos.

Minimum wage initiatives have also been launched in the cantons of Vaud and Valais, and discussions continue in the canton of Friborg. “More are likely to come,” says Siegenthaler.

Source :Blick