Workers’ salaries suffer from economic malaise
A study released on Thursday shows that wages in Switzerland are stagnating, with an inflation-adjusted rise last year of only 0.1 per cent.
The Federal Office for Statistics said pay increased on average by 0.9 per cent, but most of the gain was wiped out by a 0.8 per cent rate of inflation.
Employees in the industrial sector fared poorly with a rise in salaries of only 0.6 per cent. While chemical company workers brought up the average with a 1.2 per cent pay rise, the construction industry saw wages increase by only 0.4 per cent.
Service sector staff came out on top, taking home 1.2 per cent more than they did in 2003, led by the postal and telecommunications branches.
The pay rise in the key insurance industry was 0.8 per cent, equalling the rate of inflation. The statistics office said this was due to stagnating financial markets and restructuring carried out in 2003.
It was the third year in a row that salary rises have decreased. In 2001 Swiss workers received a 2.5 per cent rise, followed by 1.8 per cent a year later and 1.4 per cent in 2003.
Oil prices
The Swiss Federation of Trade Unions blamed the poor salary performance on high oil prices which drove up inflation and suppressed buying power. The unions also said higher unemployment had led to lower pay for new employees.
Switzerland’s Employers’ Association said the figures were proof that the country was behind other Organisation for Economic Cooperation and Development (OECD) nations in economic terms.
Over the past 10 years, salaries in Switzerland have risen by 14.1 per cent or 1.2 per cent annually, but only 0.35 per cent a year with inflation taken into account.
The banking and insurance sectors have led the pack with a 25 per cent rise over the period, while employees in the printing and publishing industry averaged less than one per cent a year.
swissinfo with agencies
Inflation-adjusted pay increase in 2004: 0.1%
(average salary rise 0.9%, inflation rate 0.8%)
Inflation-adjusted pay increase 1993-2004: 3.9%
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