Unions say executives creating “wage cartel”

Executives in big Swiss companies are part of a "wage cartel" that exists despite the current financial crisis, a coalition of trade unions has said.

The wage gap between high and low earners expanded by 72 per cent in the past seven years, Travail Suisse noted in a report released on Monday.

Not adjusted for inflation, average management salaries in major companies has leapt by 83 per cent since 2002 while nominal wages went up by 8.4 per cent in the same time, a study said. In real terms, worker salaries rose 1.3 per cent.

Although management salaries suffered a four per cent dip from 2007-2008, pay at 11 of the 27 companies surveyed rose during the year, notably at ABB, Clariant, Nestlé and Novartis.

The director general of ABB, an industrial concern headquartered in Zurich, earns 425 times more than the bottom-rung employees.

Travail Suisse wants greater transparency, the end of golden parachutes and for employees to be given a place on companies’ boards of directors.

The study follows the decision by the Senate last week to reject salary caps and a ban on special payments to senior managers. A people’s initiative had demanded the restrictions to counter what it considers excessive pay packages.

swissinfo.ch with agencies