Welsh fight for their minimum wage

Is the federal government going to parade the cantons and destroy cantonal referenda? The National Council will decide on this issue on Wednesday.

Central States member Erich Ettlin (60, OW) wants to cap the cantonal minimum wages with an initiative. At least if the social partners agree on lower wages in a collective agreement (GAV) and the Federal Council declares the AWB universally binding – i.e. mandatory for the entire industry.

While some cantons already have a corresponding exception, in Geneva (CHF 23 per hour) or Neuchâtel (CHF 20) the cantonal minimum wage takes precedence. With the advance, this priority would be nullified.

“Attack on the autonomy of the cantons”

The French cantons, on the other hand, are now in revolt. In a letter to the National Councilors, the intergovernmental conference in Western Switzerland defended itself against the proposal, which attacked federalist principles “and ignored the will of the people”. The initiative must be rejected in order to protect state political institutions and democratic rights.

“The motion is a direct attack on the autonomy of the cantons,” it says. It curtails the constitutional power of the cantons to become active in social policy. And: “A universally binding GAV does not enjoy the same legitimacy as a canton law.”

“Attack on Working Poor”

But not only the cantons of Romandie, the trade unions are also going on the barricades. The motion not only restricts the freedom of the cantons, says union leader and SP council member Pierre-Yves Maillard (54, VD). “It attacks the working poor, in which the cantonal minimum wages are undercut.” It is about securing the subsistence level with minimum wages.

A calculation by the Unia trade union shows what the motion would mean for the employees. If the cantonal minimum wage falls, a hairdresser in Geneva will receive several hundred to 1,000 francs less per month. In Neuchâtel she loses up to 400 francs a month.

“Such a pay cut makes no sense,” says Maillard. Because previous experience would show that the cantonal minimum wages would not lead to more unemployment. “On the contrary: the lack of staff is the problem, not the minimum wage.”

FDP-Feller is for it

Employers and traders, however, continue to beat the drums for the initiative – although critical voices can be heard even in the SVP. In French-speaking Switzerland, the advance was not only met with resistance. “On this point I am more liberal than Romand,” says FDP national councilor Olivier Feller (48, VD).

The cantonal minimum wage will remain in force as long as there is no universally binding collective labor agreement. “But general applicability is determined by the Federal Council on the basis of a federal law, so federal law takes precedence over cantonal law here — that’s just as important in terms of state policy.”

Unions need to negotiate better

He is annoyed that the unions can use cantonal regulations to undermine mandatory collective bargaining provisions. “Picking just one aspect is unfair,” says Feller.

And what does he say to the hairdresser who has to make do with less pay? “She must demand that her union negotiate better wages in the GAV,” says the liberal. “Or then the unions would have to end the GAV so that the cantonal minimum wage takes precedence.”

Short decision

In the National Council’s Economic Commission, the decision of 11 to 10 was narrowly in favor of the initiative. A hot debate is scheduled for the plenary session – and here too the outcome seems close.