Ahead of regular negotiations with employers’ associations from different industry and service sectors, the Trade Union FederationExternal link says the hike is necessary to compensate for inflation and the growing costs of mandatory health insurance premiums.
Union president Pierre-Yves Maillard said ignoring these facts would lead to further widening of the gap between the rich and the less well-off. He was speaking at a news conference in Bern on Friday.
The union umbrella group argues its demands are justified despite an uncertain economic outlook in Switzerland for next year. It said the current situation was better than often described and that many companies had full order books and needed additional staff.
The federation says it is high time to reduce salary discrepancies between men and women following the public protests in June.
On Thursday, the independent research institute BAK EconomicsExternal link lowered its growth forecast to 0.7% from 1.2% for next year, while the government’s State Secretariat for Economic Affairs recorded a slight drop in economic growth over the past three months.
The main reasons cited are increasing uncertainty and a weakening economy in Europe.
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Swiss government predicts moderate economic growth in 2019
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The State Secretariat for Economic Affairs (SECO) is expecting the Swiss economy to grow moderately by +1.2% in 2019, it said on Thursday.
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Growth in the Swiss engineering and metals industries deteriorated significantly in the first half of 2019 and forecasts are equally gloomy.
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Worsening international conditions will have a negative impact on Switzerland’s export-driven economy, says the Swiss Economic Institute (KOF).
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