On November 24, Swiss citizens will have to vote for or against the popular initiative launched by the Young Socialists. They want to impose, via a constitutional amendment, a maximum 1-12 difference between the lowest and highest salary in an undertaking or a group of undertakings belonging to the same entity. Though recent survey show that the strong support given to this initiative, known as 1:12, is apparently going down, a lot of large businesses are worried and some managements even wrote to their employees. In case of a yes vote, opponents mention several outsourcing scenarios as well as divisions into several entities. (Ref. 130695)
Employers are active and united against the initiative. Swiss employers are sounding the alarm: “With the 1:12 initiative, the left-wing is asking the State to interfere with companies’ business by introducing a diktat on pay. What will the consequences be? Some jobs will be outsourced, unemployment will rise, fiscal revenues will decrease as well as other AVS contributions (editor’s note: retirement insurance), amounting to billions, taxes and other debits will increase, and there will be more State controllers and red tape.
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