Trade union umbrella organization Travailsuisse draws a mixed conclusion from the wage negotiations for 2023. On average, wage increases cannot compensate for the price increases in 2022.
Despite the highest wage increases negotiated in the past 20 years, it was only partially possible to maintain the purchasing power of workers, the media said in Bern on Monday. Most wage negotiations have now been completed.
2.5 percent more wages
With average wage increases of 2.5 percent, these would be below inflation of 3 percent. This means that nominal wage increases would be at 2001 levels. Overall, 97 percent of general pay raise negotiations were negotiated. On average, however, these lagged behind the price increases. Zero rounds were not registered.
Despite the continued good economic situation, too many employers were stingy and unwilling to fully compensate for the price increase, it was said.
Positive results in wage negotiations were achieved in particular in the hotel and restaurant industry, in the watch industry, in cleaning in German-speaking Switzerland, in railway construction and in the carpentry trade. According to Travailsuisse, the results of the negotiations in construction, public transport and public administration are satisfactory.
On the other hand, there were unsatisfactory results, especially in the retail trade, in the wood construction industry, among painters and plasterers and in the health sector.
Despite an excellent employment situation and increasing labor shortages, real wages fell by almost 2 percent in 2022. This corresponds to the highest loss of purchasing power in the past 80 years. Low- and middle-income workers are expected to see a cost of living increase of 3.5 to 4 percent this year. The financial situation of households has deteriorated accordingly.
Inflation also in 2023
It is assumed that the cost of living will also rise in 2023 and that the price increase will continue, says Thomas Bauer, head of economic policy at Travailsuisse. Inflation of 2.5 percent is expected for 2023 due to higher electricity prices, energy prices, rising rents and higher mortgage costs. In addition, there was a sharp increase in health care premiums by an average of 6.6 percent.
The trade union umbrella therefore called for an automatic adjustment of the cost of living. It was said that this should be included in all collective agreements. In addition to employers, politicians are also being addressed, because “they have let active employees down in dealing with the loss of purchasing power,” said Bauer.
Travailsuisse is calling for action on the two largest budget items in Swiss households, healthcare expenditure and housing costs. The premium discounts should be increased and extended to broader segments of the population. And the yields on rental apartments should be regularly monitored and limited. Only in this way can the sharply rising housing costs as a result of higher additional costs, higher interest rates and strong immigration be limited. (SDA)