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Swiss wage protection measures agreed ahead of EU deal

Social partners and cantons reach agreement on wage protection in Switzerland
Social partners and cantons reach agreement on wage protection in Switzerland Keystone-SDA

Trade unions and Swiss cantons have agreed on domestic measures to protect wages, ahead of a treaty to cement future ties with the European Union.

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The Swiss government said it took note of their agreement, which was reached under the leadership of Economics Minister Guy Parmelin.

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In December 2024, Brussels and Bern reached a substantive agreement on new treaties to regulate future relations. It was already apparent during the exploratory talks with the EU that the level of Swiss wage protection would have to be secured with domestic policy measures.

Social partners, cantons and Federal Council agreed that in addition to the outcome of the foreign policy negotiations on a three-part protection concept for wage levels, domestic policy measures for wage protection were needed. The measures listed in the “common understanding” can be divided into three categories.

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Getting round disagreements

The first category includes measures where no agreement could be reached with Brussels. This includes, for example, the expenses regulations for employees posted to Switzerland. In order to find a solution here, maximum use is to be made of the domestic political leeway.

A second category includes measures to directly compensate for concessions made to the EU, such as the shortened pre-notification period for posted workers.

And measures to allay fears that the ban on services could come under pressure as a sanction option form the third block. However, the Federal Council considers it necessary to take further measures to protect wages.

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