Industry associations want differentiated minimum wages and a strong social partnership

The starting point for the bill currently under discussion is a motion by Councillor of States Erich Ettlin. This calls for the tried and tested social partnership system to be safeguarded against political intervention. Specifically, the federal law should stipulate that the minimum wages in generally binding CBAs take precedence over cantonal minimum wages. Even if the CEC minimum wages are lower. The amendment to the AVEG is intended to reduce legal uncertainty and strengthen the role of the social partners. The majority of the National Council's Economic Affairs Committee (WAK-N) supported this position and recommends that the bill be adopted. The political left, above all the Social Democrats and trade unions, take a different view and oppose the bill.

Maintaining the social partnership

At an event for parliamentarians on June 12, 2025 at the Raiffeisen Forum, representatives from business and politics discussed the pros and cons. Erich Ettlin (Die Mitte/OW) presented the motion and emphasized that it was necessary in order to preserve the tried-and-tested system of social partnership. Cédric Wermuth (SP/AG) opposed the motion and pointed out the problem that cantonal minimum wages could be overridden by the amendment to the law. Diana Gutjahr (SVP/TG), on the other hand, argued that the differentiated wages from the ave CLA guarantee fair working conditions. From the entrepreneur's point of view, one thing is clear: "We must not simply cherry-pick. A balanced ave CLA is a complete package." Anita Luginbühl, Vice President of the Association of Swiss Master Carpenters and Furniture Manufacturers (VSSM) and Peter Meier, President of Bauenschweiz's core group for finishing and building envelopes, also agreed with this statement.

Minimum wages: do not create the working poor

The GastroSuisse association is also sounding the same note. At a media conference in the run-up to the aforementioned event, GastroSuisse President Beat Imhof stated that generally binding CLAs are complex contracts. Cantonal regulations would create additional fragmentation. "We want uniform conditions throughout Switzerland. We don't want to lower wages," says Imhof. In addition, social welfare rates have not fallen in the cantons of Neuerburg and Geneva, which have introduced minimum wages by referendum. Beat Imhof also took the view that it could not be in the interests of employers to create working poor. In an interview with "View" he reiterated this stance: "If we don't manage to pay decent wages as an industry, we have no future on the market."

Differentiated wages strengthen vocational training

Minimum wages in ave CLAs have always offered the construction industry and its employees effective protection against wage dumping and guarantee fair working conditions. At the same time, they allow wages to be differentiated according to qualifications, type of occupation and experience. Cantonal minimum wages, on the other hand, are usually undifferentiated. In addition, the minimum wages for trained personnel stipulated in ave CLAs are usually significantly higher than the cantonal minimum wages. Giving priority to cantonal minimum wages would level out this differentiated system and thus also harm vocational training. If education becomes less relevant to wages due to a uniform minimum wage, the incentive to undergo training and further education is also reduced. "In order to strengthen the vocational training systems, it is therefore important that training, performance and professional experience are reflected in wages," explains Diana Gutjahr, National Councillor (SVP/TG) and member of the Executive Board and Chairman of the Board of Directors of Ernst Fischer AG.

Avoid legal and planning uncertainties for SMEs

A fragmented wage landscape would have specific negative consequences for companies operating in the construction industry and other sectors on a day-to-day basis. There would be considerable legal and planning uncertainty, especially when it comes to contracts outside the canton and tendering. Stephan Saxer, entrepreneur and Vice President of Ceruniq, states: "It will become increasingly difficult for companies with contracts in several cantons to calculate legally compliant and competitive offers if different wage requirements apply everywhere." Small and medium-sized companies in particular, which generally operate throughout Switzerland, would be disproportionately burdened by such a development.

Negotiation in the National Council

The Ettlin motion will be debated in Parliament on June 17, 2025. While the conservative parties are likely to support the motion, the left-wing of the Council is opposed to it. It is arguing primarily on the basis of state policy, as the Federal Council's response to the Ettlin motion was also critical: The proposal is intended to "curtail the constitutional competence of the cantons to take social policy action and set social policy minimum wages", it says. In addition, a generally binding CLA would not enjoy the same democratic legitimacy as a cantonal law. "A CLA is an agreement between private individuals and the declaration of a CLA as generally binding does not change its character under private law," says the Federal Council. A generally binding CBA is also not at the legislative level, but is best compared to an ordinance. And further: "By implementing the petitioner's request, the federal legislator would override the will of the people at cantonal level, federalist principles and the constitutional order of competences." For the proponents of the bill, however, it is not a matter of state policy issues, but of preserving the social partnership. Many industry associations now see this being called into question by the very circles that are committed to protecting employees.

Source and further information: www.ausbaugewerbe.ch