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#1 Switzerland rejects world's highest minimum wage

Posted: Sun May 18, 2014 11:43 pm
by frigidmagi
BBC
Swiss voters have overwhelmingly rejected a proposal to introduce what would have been the highest minimum wage in the world in a referendum.

Under the plan, employers would have had to pay workers a minimum 22 Swiss francs (about $25; £15; 18 euros) an hour.

Supporters said the move was necessary for people to live a decent life.

But critics argued that it would raise production costs and increase unemployment.

The minimum wage proposal was rejected by 76% of voters. Supporters had argued it would "protect equitable pay" but the Swiss Business Federation said it would harm low-paid workers in particular.

The issue was the most prominent of several referendums held on Sunday.

A controversial plan to buy 22 Swedish-made Gripen fighter jets for the Swiss Air Force was narrowly rejected by 53% of voters.

Meanwhile, 63% of voters backed a plan to impose a lifelong ban on convicted paedophiles working with children.

But it was the trade union-backed proposal to ensure that an annual salary was not less than £32,000 ($53,600) a year that provoked the most debate.

Unions argued that the measure was necessary because of the high living costs in big Swiss cities such as Geneva and Zurich.

The unions are angry that Switzerland - one of the richest countries in the world - does not have a minimum pay level while neighbouring France and Germany do.

Continue reading the main story
Swiss monthly living costs

One-bed city centre flat: 1,800 francs
Utilities: 100-200 francs
Health insurance: 300-400 francs
Public transport: 50-70 francs
Restaurant meal for two: 100-150 francs
They argue that surviving on less than 4,000 francs a month is not possible because rents, health insurance and food are all prohibitively expensive.

The minimum wage in Germany will be 8.5 euros an hour from 2017.

A key element of the campaign in favour of a minimum wage was the argument that the Swiss welfare system was being forced to subsidise businesses which refuse to pay a living wage.

But business leaders and the government said low unemployment and high standards of living for the majority showed there was no need for change.

Small businesses, in particular Swiss farmers, were especially worried that being forced to pay their staff 4,000 francs a month would price their products out of the market.

Most of Switzerland's low-paid workers operate in the service industry, in hotels and restaurants, and the majority of them are women.
Not to surprising honestly.