Swiss trade unions generally satisfied with wage negotiations

© Keystone / Laurent Merlet

Real wages should rise slightly in 2024, but there are still some significant exceptions.

The Swiss trade union umbrella organisation Travail.Suisse considers wage negotiations to be satisfactory overall. The slight increase expected in 2024 applies above all to employment relationships governed by collective agreements.

For the economy as a whole, however, real wages will stagnate after three years of falling purchasing power. Overall, real wages will remain below their pre-pandemic level.

Significant improvements have been achieved in low-wage sectors such as hairdressing. On the other hand, negotiations have failed in the construction sector and at the federal government, where real wages can be expected to fall.

Indexation demanded

“Indexation of salaries to the increase in the cost of living is essential for all employees. This must once again become a matter of course for the government,” said Greta Gysin, president of the transfair staff union, quoted in a press release on Monday.

In the construction sector, the situation remains gloomy, lamented Nora Picchi of the Syna union. After an intense dispute last year, it was impossible to reach an agreement again this year. However, she is pleased with the gains made in the timber construction and finishing industries.

Purchasing power will remain under “massive” pressure over the coming months, and it is far too early to lower our guard, warns Travail.Suisse. There will be further increases in rents, health insurance premiums, electricity bills and taxes in 2024.

Thomas Bauer, head of economic policy at Travail.Suisse, points out that the financial situation of households between 2021 and 2023 will be worse than at any time in the last 50 years. Above all, in his view, there has never in the past been such resistance on the part of employers to adjusting wages.

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