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Switzerland votes on world's highest minimum wage | Switzerland votes on world's highest minimum wage |
(about 3 hours later) | |
Swiss voters are taking part in a referendum on Sunday on whether to introduce what would be the highest minimum wage in the world. | |
If approved, employers would have to pay workers a minimum 22 Swiss francs (about $25; £15; 18 euros) an hour. | |
Supporters say the move is necessary for people to live a decent life. | Supporters say the move is necessary for people to live a decent life. |
But critics argue that it would raise production costs and increase unemployment because young people would find it more difficult to get work. | But critics argue that it would raise production costs and increase unemployment because young people would find it more difficult to get work. |
Correspondents say that the proposal "to protect equitable pay" is the most prominent of several referendums on Sunday, | Correspondents say that the proposal "to protect equitable pay" is the most prominent of several referendums on Sunday, |
They include a controversial plan to buy Swedish-made Gripen fighter jets for the Swiss Air Force and to impose a lifelong ban against convicted paedophiles working with children. | They include a controversial plan to buy Swedish-made Gripen fighter jets for the Swiss Air Force and to impose a lifelong ban against convicted paedophiles working with children. |
But it is a trade union-backed proposal to ensure that an annual salary is not less than £32,000 ($53,600) a year which has provoked the most debate. | But it is a trade union-backed proposal to ensure that an annual salary is not less than £32,000 ($53,600) a year which has provoked the most debate. |
They argue that the measure is necessary because of the high living costs in big Swiss cities such as Geneva and Zurich. | They argue that the measure is 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. | 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. |
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. | 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. | The minimum wage in Germany will be 8.5 euros an hour from 2017. |
The BBC's Imogen Foulkes in Geneva says that a key element of the campaign in favour of a minimum wage is the argument that the Swiss welfare system is being forced to subsidise businesses which refuse to pay a living wage. | The BBC's Imogen Foulkes in Geneva says that a key element of the campaign in favour of a minimum wage is the argument that the Swiss welfare system is being forced to subsidise businesses which refuse to pay a living wage. |
But business leaders and the government say that low unemployment and high standards of living for the majority show that there is no need for change. | |
Small businesses, in particular Swiss farmers, are especially worried that being forced to pay their staff 4,000 francs a month would price their products out of the market. | Small businesses, in particular Swiss farmers, are 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. | |
Another vote, which was designed to ensure that bosses could earn no more than 12 times the salary of the lowest paid in their company, was narrowly defeated last November. | Another vote, which was designed to ensure that bosses could earn no more than 12 times the salary of the lowest paid in their company, was narrowly defeated last November. |
The latest opinion polls indicate the minimum wage proposal may be rejected. | The latest opinion polls indicate the minimum wage proposal may be rejected. |