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A quarter of a century ago: In November 1998, delegates at the congress of the Swiss Federation of Trade Unions launched the first minimum wage campaign. What do low wages look like in Switzerland after 25 years? What’s going on at the political level right now? A few facts.
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More cantons and cities with minimum wage
In 2014, the public said no to the federal minimum wage initiative. Although there is no minimum wage at the national level (it should be 4,000 francs per month), the cantons of Neuchâtel, Jura, Geneva, Ticino and Basel-Stadt have since decided on a minimum wage based on popular initiatives in the canton. This year, the cities of Zurich and Winterthur said yes to similar minimum wage initiatives. In Winterthur this should be at least 23 francs per hour, and in Zurich it should be at least 23.90 francs per hour. Extrapolated to a 100 percent workload, this corresponds to approximately 4,100 to 4,300 francs per month multiplied by 13. However, objections were also received. It is not yet clear whether it will come into force at the beginning of 2024.
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Where cantonal minimum wage initiatives are being implemented
“It’s not over yet” was the slogan at the unions’ anniversary meeting on the minimum wage this week. Accordingly, minimum wage initiatives are being carried out in the cantons of Solothurn, Basel-Landschaft, Vaud and Valais, as well as in the city of Lucerne. According to unionists, Freiburg, Appenzell Ausserrhoden, St. Discussions are ongoing in the cantons of St. Gallen and Thurgau, as well as in the cities of Bern and Biel. They confirm: “Low-wage employment has declined in recent years.” Low and poverty wages have not disappeared.
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What does the low-wage situation look like today?
Internationally, low wages are defined as wages below 66 percent of the average wage for the economy as a whole. According to statistics, 16 percent of women and 8 percent of men in Switzerland had low wages in 2020. In other words: Based on 40 hours per week, the gross monthly wage is less than 4,399 francs.
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Sectors with the highest low wage rate
The hospitality sector, cleaning and retail remain low-wage sectors, according to the union federation’s own assessment of the BFS’s 2020 wage structure survey. When asked about unions, he said: “The problem of low pay is particularly acute in personal services, including hairdressing and cosmetics studios, where more than half of workers are underpaid.” This also includes employees of 1,100 Swiss petrol station shops. The lowest minimum wage is in Ticino with 3,600 francs per month. In Valais, Jura, Graubsunu, Schaffhausen and Thurgau, the minimum wage is 3,730 francs, and in the rest of Switzerland it is 3,830 francs.
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Minimum wages are increasing in retail
Competition with German discounters Aldi and Lidl has increased in recent years not only for lower prices in stores, but also for employees on the sales front. This competition is also carried out on wages. At Denner, unskilled workers now receive 4,400 francs a month with a 100 percent workload. A look at Lidl and Aldi shows: at Lidl it is currently 4,500 francs a month without education. Aldi Suisse is the leader in minimum wage: In 2023, employees will receive at least 4,646 francs per month. Unskilled workers at Coop and Migros are paid less than the statistical low wage limit of 4,399 francs per month (minimum wage 4,200 francs). However, in addition to vacation days, social benefits and payments to the employer’s pension fund are also important.
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Food industry and minimum wages
Social partners in the hospitality industry agreed on the minimum wage for next year in July 2023. Minimum wage in francs (gross) per month according to L-GAV: employees without vocational training now earn 3,666 francs, employees with federal certification. Certificate of qualification and further training 4,576 francs.
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Temporary industry making progress
400,000 employees can be happy! After intense negotiations, the social partners agreed in mid-November on a new collective bargaining agreement on staff hiring for the next four years. This will give unskilled workers a minimum wage of 3,744.86 francs next year. The high wage for unskilled temporary workers is 3,951.26 francs per month.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
