Endurance test for the Swiss social partnership

The social partnership dispute in the construction sector is unlikely to contribute to the declaration of social partnership. (Photo: Goran Basic / NZZ)

Social partnership in Switzerland has a status similar to that of direct democracy and federalism: it looks like a real marriage and all political convictions are almost indispensable. At the initiative of the Department of Economic Affairs, the umbrella organizations of social partners with Federal Councilor Johann Schneider-Ammann signed Thursday in Bern a "Declaration on the future of labor and social partnership in Switzerland". Digital age ". The explanation has a Sunday school character – with well-sounding phrases that are general enough that hardly anyone can be against.

For example, according to the Declaration, digitization should benefit both workers and employers, social partnership remains a factor of success and a constructive dialogue should contribute to sustainable prosperity. Some phrases look like typical compromises. For example, continuing education "on the one hand" should be the responsibility of employees and, on the other hand, "favored" by the employer. In addition, the social partners should "look for" solutions "that favor" a better "reconciliation of work, family life, leisure and working time". And the system of collective agreements should, with its "flexibility", belong to an "actively practiced social partnership".

The EU as elephant in the room

Such explanations will not hurt. Another question is to know if they help. The daily work is decisive and sometimes there is nothing to do with the "active social partnership". The elephant in the room at the signing ceremony Thursday at the Bundeshaus was the dispute over a possible framework agreement between Switzerland and the EU. Among other things, the EU calls on Switzerland to adapt its wage protection measures in the context of free movement of persons; The pre-registration period is eight days for the self-employed and seconded from the EU; a period of four days would be more acceptable for Brussels. The deposit requirement for some EU companies and the density of wage control are also problems.

The Minister of the Economy and employers have accused unions of refusing to talk about wage protection measures this summer. The unions do not want to divulge a millimeter and prefer to form with the SVP an impious alliance to block a framework agreement. However, wage protection measures are not the only obstacle to negotiations between Switzerland and the EU. EU requests for State aid (problems of cantonal banks) and the EU Citizenship Directive (extension of the right of residence and access to the Swiss social system) remain, according to recent estimates, toads, which would be difficult to digest by domestic politics.

It must hurt first

If a surprising breakthrough does not occur in the coming weeks, the conclusion of a framework agreement is likely to be suspended for some time, according to a widespread assessment in the light of the 2019 elections in the ## 147 ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # 39, EU and Switzerland. This would reassure the Swiss unions and some employers do not seem to consider an agreement as very urgent. But business representatives sooner or later want a secure relationship with the EU. In principle, this would also be in the interest of employees. On the domestic front, however, "legal certainty" can only be sold badly, as it seems abstract.

In concrete terms, on the other hand, the possible traps of the EU in the absence of a framework agreement – such as the persistent refusal to conclude a power agreement, the definitive refusal to recognize Swiss securities regulations , obstacles to research cooperation and much more. If it hurts, the atmosphere in Switzerland can quickly deteriorate, as shown in the past. In certain circumstances, the price of a framework contract with the EU in certain situations could be higher than today's lower than today's; this could put the Swiss social partnership to the test of endurance.

We can see much earlier what is worthy of Thursday's declaration of social partnership. Another major conflict issue – the pension provisions – the social partners are to provide the Bundesrat with solutions for the second pillar by next spring. The differences are apparently always large, but the participants still have time.

Conflict over working hours

One can also hear the rhetoric of the trenches in the conflict on hours of work. Parliament rallies call for looser rules, but unions are fighting against it. Even in this conflict, Thursday's statement probably can not really help. The same is true for the conflict between the social partners in the construction sector. But here's the good news: under the umbrella associations, the social partnership seems to continue to work satisfactorily. This also applies generally to annual salary negotiations.

And at the abstract level, there are few differences: social partnership is a good thing. Not only the social partners themselves say so, but they are also studying authors such as the World Association of OECD Countries. Collective agreements can also be a good thing, even if they are agreements. In product markets, a "cartel deal" seems terrible, but collective bargaining can be beneficial in the labor market. They compensate for the potentially weak bargaining position of each employee, prevent conflict, solve coordination problems and take into account economic development.

The progressive service economy and the growing trend towards highly skilled labor weakens the attractiveness of unions. Computer scientists feel less concerned about class struggle than building or factory workers. The share of unionized workers has increased from around 45% to 35% on average in OECD countries since 1985 and from 25% in Switzerland to around 16%. However, collective agreements cover a lot more employees – in Switzerland about 50% of employees. That's how the country can live well.