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Swiss to Vote on $25-an-Hour Minimum Wage

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The Swiss Minimum Wage Initiative for $25 an hour in 2014

05/16/2014

The proposal to set the minimum wage at $25 was rejected by 70% of Swiss voters in May 2014. The Swiss Trade Union Federation says about 90% of Swiss workers already make over $25 an hour. Voters were concerned that the minimum wage set by the initiative would affect the Swiss apprentice system.

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Business and labor organizations both support increasing the minimum wage and see a modest impact on jobs in March 2014. A key is that business has 2 years till 2017 to adjust in the new proposed law, and that the proposed $8.50 is already close to 50% of the median wage. The impact in improving wages will be felt in the lower wage restaurant and service sector, and in the eastern part of Germay. About 5 million workers would benefit. There are also exemptions for young workers of 18 years of age and workers with long periods of unemployment, a clause that could also be adopted in the U.S. to minimize impact on job loss.

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Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones

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Michigan Becomes Seventh State This Year to Raise Minimum Wage

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