Despite staffing struggles: Pay rates in retail trade are actually inadequate

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Discounters are leaving heavyweights Migros and Coop behind when it comes to wages: Lidl, for example, is increasing the monthly minimum wage to 4,550 francs from 13 March. Moreover, they also have shopping coupons for employees, like many other retailers.

Minimum wage at Aldi is in a similar range. Migros, Coop and Denner pay almost 400 francs less. You repeatedly emphasize that it is not just the minimum wage that is important. Social benefits such as maternity and paternity leave, pension fund contributions or holidays are also very important. Either way, there is a race for the best working conditions in the retail industry.

This situation, which at first glance seems like good news for employees, turns into a deception at second glance. At least as far as employee representatives are concerned: Michael Lang, head of social partnerships at the Swiss Business Association (KV), complains that many employers rely on “Pflästerli policies” instead of sustainable improvements for staff.

In the short term, staff may be at your fingertips

In its balance sheet for the 2024 wage round, KV Switzerland writes that minimum wages have increased in the retail sector. “Many negotiating partners unfortunately rely on shopping vouchers, one-off payments or individual wage adjustments instead of sustainable compensation for inflation,” Lang writes. “In this way, companies buy the short-term goodwill of employees and thus get in the way of a sustainable wage policy.”

The Trade Association complains that despite the resulting increased minimum wages, workers in the retail sector are still losing real wages. While employee productivity increases and company profits increase, critics acknowledge that employees’ purchasing power is decreasing. This applies not only to staff in the retail sector but also to staff in other low-wage sectors such as air transport. Companies in the sector are making record profits, leaving the post-Corona era behind, thanks to their employees.

Source :Blick