Red rag for employers Geneva's minimum wage has a positive effect, according to studies
The minimum wage in Geneva has led to a significant increase in restaurant wages, especially for women. Studies show that the feared negative effects on the labor market have not materialized.
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- The Federal Council is planning to allow industry associations to set lower minimum salaries in collective employment contracts than the cantonal minimum wages.
- According to studies, the statutory minimum wage of CHF 24.48 per hour in Geneva has not increased unemployment, but has led to shorter working hours.
- Studies show that the minimum wage in Geneva promotes equal pay and particularly favors women with better qualifications.
The Federal Council wants to allow industry associations to set lower minimum wages than the cantons in collective employment contracts. Employers repeatedly emphasize that minimum wages would cost jobs.
Geneva is one of five cantons that have defined minimum wages - after the majority of voters decided in favor of them. Catering employees must earn at least CHF 24.48 per hour. This has led to a significant rise in wages in the hospitality industry, as reported by SRF. This salary has already made it into the media as the highest minimum wage in the world. It is also adjusted in line with inflation.
José Ramirez, professor of economics at the Haute école de gestion de Genève in Geneva, has investigated other effects of the cantonal minimum wage. In several studies, he has determined that unemployment has not risen due to the minimum wage.
However, Ramirez found a different reaction of employers to the increased wage costs: they reduced working hours. How they maintain operations with a reduced presence is not clear from the discussion of the studies on SRF.
Minimum wage promotes equal pay
According to Ramirez's research, minimum wages also have a positive impact on equal pay. The proportion of women who earn the same as their colleagues is increasing.
According to the economist, this is also due to the fact that women are often better educated. If employers had to pay both men and women the same because of the minimum wage, they would often opt for women because they are better qualified.
As a means of promoting equal pay and equal opportunities, Geneva's minimum wage also convinces Delphine Bachmann, a member of the Central Council of State and head of the Department of Economic Affairs and Employment, according to the report on SRF. She sees it primarily as a social policy measure rather than an economic policy measure. 58% of voters had agreed and she also wanted to maintain the minimum wage.
However, the Federal Council and parliament have other plans.