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Wages to increase just over one per cent in 2012

Swiss bank UBS says that salaries in Switzerland will rise by 1.1 per cent next year, in line with increases for 2011.

With inflation expected to be around 0.2 per cent, growth for wages will be around 0.9 per cent in real terms. Companies participating in UBS’ annual compensation survey said nominal salaries rose 1.5 per cent this year, while inflation was 0.3 per cent.

The bank’s analysts said the best deals will probably continue to be in the information technology services and telecommunications sector, where increases should be around two per cent.

Wages for the textiles and consumer goods sectors will, on the other hand, most likely stagnate, or even regress in real terms.

Companies are unwillingness to be too generous because of what they consider an uncertain economic outlook. The strong Swiss franc, the slowdown in Europe and the United States, and the European debt crisis are factors in wage discussions.

Thomas Daum, head of the Employers’ Association, warned recently that pay rises will vary between different sectors next year, with some hard hit exporters being unable to offer any increases.

The Swiss Trade Union Federation in August called on employers to increase workers’ salaries two to three per cent across the board next year.

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