Employers in Switzerland Divided over Collective Agreements

The unity among employers on certain collective agreements is weakening, leading to disagreement that benefits the unions. In Switzerland, over 40 percent of employees are covered by collective agreements, a number that has been steadily increasing. This trend is advantageous for the unions as these agreements typically establish minimum wages and working conditions. The agreements are negotiated through a social partnership with employers’ associations.

Employers have an interest in collective agreements because they promote social peace by preventing strikes during the agreement term. However, the issue becomes more complex with generally binding collective agreements that apply to all companies in an industry in a region, regardless of membership. This has divided employers into two camps, with some supporting these agreements for competitive reasons, while others criticize them for limiting flexibility.

Implementation of collective agreements is monitored by joint commissions composed of employer and employee representatives, funded by contributions from employers and employees. Some criticize the lack of transparency in the use of these funds, expressing concerns that they may be used for purposes other than intended. This has led to increased confrontation between social partners, with some questioning the control system or the effectiveness of collective agreements.

While some industry associations criticize the system, others like the Swiss Employers’ Association (SAV) maintain support for collective agreements. SAV sees them as necessary for protecting wages and maintaining social peace, rejecting calls for either expansion or dismantling. Despite ongoing debate and criticism, collective agreements continue to play a significant role in labor relations in Switzerland.