2023 salary talks offer mixed picture, says Swiss union

Healthcare workers and other public sector employees protest over proposed salary increases, Neuchâtel, December 6, 2022. © Keystone / Jean-christophe Bott

The Travail.Suisse union says Swiss workers will receive next year some of the biggest wage rises of the past 20 years. But these will not compensate for the record increase in the cost of living.

“Despite the good ongoing economic situation, too many employers have shown themselves to be tight-fisted and not prepared to compensate for the entire increase in prices,” Thomas Bauer, head of economics policy at Travail.Suisse, told reporters on Monday.

Overall, salary increases of 2.5% are expected in Switzerland, the country’s second-largest trade union said. The last time such a raise was reported was 2001. But this increase will be cancelled out by inflation, estimated at 3% this year.

The situation is particularly difficult for people on low wages who spend 70-100% of their monthly income on goods and services. For them, the cost of living has increased by 4% in 2022, Bauer said. Meanwhile, the bill would increase for high-wage earners by only 1-2%, he estimates.

Travail.Suisse is nonetheless pleased that the vast majority of wage negotiations resulted in pay increases. In 56% of cases, only general increases were possible. But for 41% of sectoral negotiations, individual pay rises were promised, as well as increases for all staff.

“The negotiations were sometimes very difficult. But acceptable solutions could be found everywhere,” said Greta Gysin, president of the professional federation transfair.

Positive talks

The watchmaking, cleaning, railway construction and carpentry sectors saw positive talks, said Travail.Suisse. It also noted a “small success” in the hotel and restaurant industry. Minimum wages will be adjusted to inflation. Real increases of CHF10-40 ($11-43) per month will also be attributed based on salary categories.

The union said these increases were “a step in the right direction” but they did not solve the problem of serious staff shortages for the hotel and restaurant industry. He also urged the GastroSuisse employers’ organisation to return to the negotiating table for a new collective labour agreement.

Travail.Suisse described salary talks in the construction industry as “satisfactory”. Workers will each receive a CHF150 lump sum following “difficult” discussions and street protests this autumn.