Trade unions have called for salary increases to boost private consumption and counter the economic slump and rising unemployment.

Travail Suisse said hikes of up to two per cent for the construction industry and the public service sector were justified to stimulate growth.

Many companies made record profits and manager salaries skyrocketed, while the workforce hardly benefited over the past five years, Travail Suisse noted.

The group wants parliament to extend short-time work and unemployment benefits.

Travail Suisse, which includes 12 unions with a total of 170,000 members, is also behind an initiative for six weeks paid holidays.

However, the Employers Association warned higher personnel costs are an extra burden for companies during an economic recession.

The association stressed that salary negotiations have to be adapted to the needs of the various sectors.

swissinfo.ch and agencies

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