Swiss Council of States approves wage protection package

The Swiss Council of States has approved a wage protection package consisting of 14 measures designed to safeguard domestic labor standards as Switzerland adopts EU law under the Bilateral III framework. A central component of this package is ‘Measure 14’, which provides enhanced protection against abusive dismissal for employee representatives. This measure aims to ensure that staff representatives can monitor wages and working conditions without fear of retaliation.

The Council approved the expanded dismissal protection with a vote of 26 to 19, reversing a previous decision by the Economic Affairs Committee that sought to weaken the provision. Proponents noted that the measure applies only to companies with more than 50 employees, affecting approximately 5,000 to 7,000 workers, or roughly 0.15 percent of the private sector workforce.

While the Swiss Federation of Trade Unions described the compromise as ‘finely tuned,’ the debate highlighted ongoing tensions regarding the immigration levy and the democratic legitimacy of the decision-making process. Supporters warned that failing to uphold this social partner compromise could jeopardize the entire Bilateral III package.