Rising cost of living – unions are calling for a whopping wage increase next year – News


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The Swiss Trade Union Confederation (SGB) is calling for a five percent wage increase for 2024. The employer side is appalled.

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Everything has become more expensive – or will: groceries, buses and trains, post, VAT, rent, health insurance. The more expensive life puts many households under pressure. That’s why the unions want to fight harder this fall for more wages than in recent years. The unions, led by the Swiss Federation of Trade Unions, are demanding five percent more by 2024.

The chief economist of the trade union federation, Daniel Lampart, explained the reasons at the media conference in Bern: “Companies are raising prices, the economy is doing well and the employees are working hard.” Nevertheless, minus the inflation, there have been no wages since 2015. “Now is the time for wages to rise. For the people, because they deserve it. But also for the purchasing power in the country.”

Real wages have fallen

The statistics show that real wages – i.e. wages minus inflation – have not only stagnated in Switzerland over the past three years, but have actually fallen. This means that consumers have less purchasing power, so they can afford less. At the same time, Lampart refers to the annual reports of companies that show that in many sectors the margins could have been increased beyond inflation. “The money is available in many companies, they are doing well. There is a gap in wages. We will now see how the wage negotiations go, »says the chief economist of the trade union federation.

Employers see only limited scope


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Simon Wey from the Swiss Employers’ Association does not deny that many households have suffered real wage losses in recent years. However, the requirement of five percent is excessive. “Because wages have risen in step with productivity in recent years.” Ultimately, it is crucial whether productivity is also reflected in real wages. “And we take that for granted.”

The keyword productivity is important: If a company with a stable number of employees produces, sells or distributes more, then employees should be rewarded for it, according to the theory. According to the employers’ association, this has been achieved – according to the trade union federation, wages are lagging behind productivity.

Wey promises that employers will not shut themselves out from wage increases: “But the scope is not so great that you can pay five percent more wages.” Because the money has to be earned first. “It’s a difficult exercise to pretend now that you can simply compensate for the real wage losses of recent years next year.”

The trade unions are also preparing for a difficult exercise. Especially since the social partnership has changed in recent years, says Natascha Wey from the Union of Public Workers (VPOD). And that’s for the worse: Today you even have to fight to compensate for inflation, says the trade unionist: “It used to be different. It was clear to the population that any inflation would be automatically offset. That was the understanding of social partnership for a long time.”

People are no longer willing to take losses in real wages.

The fight against inflation alone – a new phenomenon according to Natascha Wey – will probably make wage negotiations more hateful this year: “People are no longer willing to accept real wage losses. They want inflation to be offset and to participate in productivity gains.” The trade unionist concludes that it is clear to people that job satisfaction in Switzerland comes at a price. “That means employers have to move.”

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For trade unionist Natascha Wey, there are first signs that the base is rumbling. As examples, she cites the strikes in the canton of Vaud or at Geneva Airport (pictured).

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The unions get support from management consultant Klaus Wellershof. The economist hopes for generous wage growth rates because they would help the economy. However, the economist does not believe that the fall in wages could escalate. Because: «Employees and employers naturally have opposite interests at this point. Luckily in Switzerland both sides are not stupid and understand what they are doing. In the end, something decent comes out – at least that’s how it was historically.”

The next few months will show how high this decent wage increase will ultimately be and whether further strikes will come to Switzerland.

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