Swiss firms shouldn't be required to pay a liveable wage, says employer group head

The director of the Swiss Employer’s Association has caused an uproar, after suggesting that businesses should not be required to pay their workers a liveable wage. Roland Müller was speaking during a debate on whether to override cantonal minimum wages, and has since defended the comments.

State should step in if wages are not high enough, employer director argues

"A purely living wage is not the responsibility of employers," Müller told a meeting of the National Council’s Economic Commission back in March. At the time, lawmakers were debating whether cantonal minimum wages, such as those offered in Geneva, Ticino and three others, should be overridden if an employee is subject to a collective labour agreement (CLA) made at the national level.

In comments newly revealed by Blick, he went on to argue that you “can't demand that employers or businesses ensure [staff] livelihoods. It all stops somewhere". He noted that if employers do not give their staff a liveable salary, "ultimately, social assistance has to step in".

Any Swiss firm paying less than liveable wage is a "lousy employer", say opponents

Müller’s comments have now become a political firestorm. Speaking to Blick, Social Democratic National Councillor Jacqueline Badran argued that through his model, “the profits go to private individuals, the costs go to the state”. 

She argued that the director’s views conjure an image of employers as “gracious gentlemen” who see good salaries and jobs as “generous gifts”. "If I can't pay a living wage, I'm either a lousy business owner or a deceitful exploiter of my people. You can't seriously endorse either option," Badran claimed.

Swiss Trade Union Federation lawyer Luca Cirigliano added that if cantonal minimum wages were overturned in favour of CLAs, some workers would see their salaries drop by 300 francs a month. He added that the move from minimum wage to CLA would likely overwhelm social welfare offices, which would be swamped with new applications.

Mandating minimum or liveable wages leads to job losses, Müller retorts

In defending his comments, Müller said that “of course, the goal is to be able to live off one’s own salary - that’s completely undisputed”. However, he cautioned that many companies cannot afford to pay workers a living wage without increasing gross profits or cutting jobs. "Minimum wages that are too high lead to these jobs disappearing. This doesn't help those affected either," he argued, adding that he believed that low-wage work was preferable to claiming unemployment benefits.

As to the debate between minimum wages and CLAs, he said that the “social partnership” would be threatened if minimum wages took precedence over agreements made between companies and unions. He argued that in addition to setting wages, CLAs include “better working conditions, continuing education, and vacation time…If the cantons tweak the minimum wages, the entire structure is at risk."