The EU-Swiss accord sparks apprehensions over remuneration for foreign laborers in Switzerland, prompting debates about labor market effects.
In an in-your-face declaration, the Swiss Federation of Trade Unions (SGB) and Travail Suisse have bloody well expressed their worry that the arrangements with the European Union, finalized in December 2024, are threatening wage protection rules for some foreign workers residing in Switzerland.
They're pissed off that the compensation packages for employees from the European Union working their asses off in Switzerland are still a long way from being resolved to their satisfaction.
Here's the skinny:
Most EU nationals employed in Switzerland are permanent residents with a B or C permit.
But some of these workers are folks sent over to work in Switzerland by their home country companies. These folks are known as 'posted' workers.
These posted workers are subject to the 'European regulation of costs' rules, meaning that their employers in their home countries shell out the cash for their accommodation, meals, and other expenses in Switzerland.
The problem is, these payments are based on their countries' own rates, which are often significantly lower than Swiss levels.
For the unions, this is a bullshit situation and they're demanding that (higher) Swiss compensation rates be mandatory for these workers while they're employed in Switzerland.
Swiss salary standards are already guaranteed for foreigners to prevent wage dumping, so employment expenses for posted workers should be no exception, say the unions.
With the European Union showing no signs of giving an inch on this issue during the negotiations, the unions believe it's now down to Switzerland to find a way to address this inequality - or else. (No updates yet on how or when this topic will be tackled).
Fact is, the unions hold a lot of clout and they're threatening to use it, saying they'll do whatever it takes to scuttle the new package of measures when it goes to a referendum at a date that has yet to be determined - a necessary step for the treaties to be enshrined into law.
The unions know they're the ones holding the aces and they're not afraid to play them, they insist.
READ MORE: Can my Swiss employer stiff me because I'm a foreigner?
Since the European Union hasn't budged on this issue during the negotiations, the unions are pointing the finger at Switzerland and demanding they take action. In fact, the unions wield a hell of a lot of power when it comes to whether the new package of measures will be approved or rejected by voters when it eventually goes to a referendum. And they're not afraid to use that power to get what they want.
READ MORE: Everything foreigners need to know about trade unions in Switzerland
Enrichment Data:Based on the research conducted, there seems to be no current dispute between Swiss trade unions and the European Union over wage protection for posted workers. However, it's worth noting that broader labor and EU-related issues have been plaguing Switzerland for a while:
- The Montblanc Labor Dispute: Swiss luxury group Richemont (owner of Montblanc) is in the middle of a labor fracas with Italian subcontractor workers in Pakistan over work conditions and layoffs. The dispute stems from broken negotiations between unions (Sudd Cobas) and Richemont regarding worker protections after contract terminations[4]. Although unrelated to posted workers, it serves as an example of ongoing labor issues in global supply chains that Switzerland is grappling with.
- The Switzerland-EU Institutional Negotiations: The recently concluded "Switzerland-EU Package" (2024) addresses long-standing institutional issues, including market access and regulatory alignment[5]. While wage protection for posted workers hasn't been explicitly discussed, these agreements often involve labor mobility and fair competition clauses, which could indirectly relate to wage standards.
- Sanctions Alignment: Switzerland's adoption of EU sanctions against Russia (e.g., Article 29d UKRO) signifies close regulatory coordination with the EU[2]. However, this touches on sanctions compliance, not labor disputes.
Context for Posted Workers:In the past, Switzerland has maintained wage protection measures for posted workers, such as the Entsendegesetz, which requires foreign employers to abide by Swiss wage standards. The research conducted doesn't delve into specific recent conflicts, but past issues between the EU and Switzerland have centered on:- Enforcement consistency beneath bilateral agreements.- Single market integrity concerns regarding Swiss labor rules creating non-tariff barriers.
The current "Package" negotiations[5] may address such alignment, although the research lacks specific details. For detailed information on ongoing disputes, additional sources would be required.
- The Swiss unions, displeased with the compensation packages for European Union workers in Switzerland, have demanded that Swiss compensation rates be mandatory for these workers while they're employed in the country.
- The unions are asserting that it's imperative for Swiss salary standards to be applicable to employment expenses for posted workers, just as they are for permanent foreign residents in Switzerland.
- Given the European Union's reluctance to budge on this issue during negotiations, the unions are now prioritizing action from the Swiss government to address the wage inequality issue threatening the new package of measures, which will eventually go to a referendum.
- The unions maintain that they possess significant influence, and if necessary, they won't hesitate to use it to scuttle the new measures should their demands not be met.
