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Swiss-EU: Federal Council adopts measures to secure wage protection

Federal Council wants to secure wage protection vis-à-vis the EU with a package of measures
The measures agreed upon by the social partners and the cantons in February have since been successfully finalised, Economics Minister Guy Parmelin told reporters on Friday. Keystone-SDA

The Swiss government has adopted a package of measures to protect Swiss wages, should the new agreements negotiated with the European Union (EU) come into force. Fourteen measures are to be included in a consultation draft for the overall package with the EU; social partners and cantons have agreed on 13 of these measures.

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The measures agreed upon by the social partners and the cantons in February have since been successfully finalised, Economics Minister Guy Parmelin told reporters on Friday. The social partners have now agreed on further measures based on the government’s proposals.

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Securing collective agreements

According to Parmelin, these measures safeguard the existence of the collective agreements that have now been declared generally binding by means of adjustments to the so-called quorums.

In addition, legal protection for domestic companies that are to be subject to a generally binding collective agreement is to be improved.

Based on the discussions that the State Secretariat for Economic Affairs (SECO) has been holding with the social partners and the cantons since December 2022, as well as a recommendation from the International Labour Organization (ILO), the Federal Council has also decided to propose improved protection against dismissal, particularly for elected employee representatives.

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Prevent wage dumping through expenses

The government stresses that the 14 measures are specifically targeted at areas where wage protection levels need to be better safeguarded. They are primarily aimed at companies posting workers to Switzerland from EU states.

According to the Federal Council, to the extent that they also apply to Swiss companies, they do not create any significant new burdens for domestic companies and do not restrict the flexible labour market.

Regarding the expense regulations, Switzerland intends to amend the Posted Workers Act, as SECO head Helene Budliger Artieda explained.

This will apply in the event that the regulations in the country of origin do not cover the actual costs of the stay in Switzerland.

“This must be compensated based on the actual costs in Switzerland,” said Budliger Artieda, expressing her conviction that this will prevent wage dumping through expenses.

Translated from German with DeepL/sb

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